Do insurance companies really verify the information I give on the
quote form? What happens if I leave something out?
Absolutely. Expect any auto insurance company to verify the
information you give them during the quoting process. They
obtain copies of items such as your
to confirm the information you've given through an application or
online quoting form.
Some car insurance providers double-check your information
before they finalize your rate and sell you a policy; others will
start your policy immediately after a quote, then check your
information after the policy is already in place.
A minor traffic ticket from a few years ago might change your
rate a few dollars or not at all. A DUI or major claim you don't
disclose could lead to cancellation. Either way, incorrect
information results in an incorrect insurance quote, which defeats
the point of
If during their verification the insurance company finds a
ticket, accident, claim or other item you left out, then your
rate quote will likely change. If your policy has already begun,
then you will receive an additional premium notice asking that you
pay the extra amount or face cancellation. The notice should
explain why the premium changed. (See "I forgot to tell my
insurer about a ticket.")
Leaving out a major item -- a newly licensed teen driver in the
household or a past DUI -- has bigger consequences.
State laws usually allow a car insurance company to cancel a
policy within the first 60 days for a wide variety of reasons and
then only a few reasons after that time period. However, if
it's found that you misrepresented the facts when applying for the
policy, an insurer typically can cancel at any time.
Omitting the big items can even be considered insurance
fraud. Misrepresentation is a form of insurance fraud that
can get your policy canceled and you in hot water with the
Misrepresenting licensed household members, where you live, who
the owner of a car is, and important details of this nature to
reduce rates is unacceptable and once found out can get your policy
canceled, perhaps even back to the date of inception (causing a
lapse in coverage) if state laws allow. This could leave you
without coverage and make it hard for you to find a new insurer -
because you are now an even higher risk since you've been known to