Can I lie to my insurance company?

[knewsom32]

Rates will vary. There are times where I think USAA can be beat, but I'm not going to fix something that isn't broken right now. They've never let me down.

I was surprised how much my rate increased when I added the FR-S to a policy with an FJ Cruiser already on it. Estimated my mileage to be fairly low as well.

EDIT: Oops. Chris@Phastek. Didn't know my girl was logged in.

[Jaylyons1]

I told mine I drive 12k a month (which is probably more than I actually drive) but I was quoted at $140 that and my 2012 exploder.

[DeeezNuuuts83]

I work in insurance and am appointed with multiple carriers and have licenses in multiple states as well, so I have a pretty good idea about it, though it's mostly an issue in California, since many other states typically don't ask your exact mileage.

Some companies give you free reign with your mileage, though if the claimed annual mileage doesn't exactly correspond to the existing mileage on it, then sometimes there is a pop-up that reminds me (as the insurance agent) to include an explanation of why, though usually it's because they may have purchased the car used while having had a lot of mileage on it beforehand, or sometimes the driver may have had a really long commute before.

There are some companies that give you free reign, though they do follow-ups to make sure that your estimated mileage is somewhat accurate, as they may request a picture of your odometer reading or some document (i.e. maintenance service record) showing the mileage of your vehicle and a date. Another company, as of last year, started automatically bumping up people's mileage by 1,000 annually unless you call them to confirm that your mileage hasn't changed, though most people don't really read their insurance documents thoroughly.

Some other companies have a low minimum where you can pick any mileage above it certain amount and they won't care, or if you go below it, you may have to sign a waiver confirming that the mileage is correct, if it's low.

Some other companies, usually non-standard ones (like if you have a lot of tickets, accidents or a DUI, or some combination of them) don't usually let clients dictate the mileage, and they have set minimums that are right around average, so at best you can only claim ~12,000 or so. Some of their interfaces don't allow us (as agents) to go below it, and if we do, they may require some proof (which is the documentation mentioned earlier) or do something that will discourage lower mileage. For example, one company used to make you pay-in-full if you claimed lower than 9,000 miles.

When it comes to claims, I think it's fairly obvious that insurance companies can't expect your estimate to have been either 100% accurate or greater than the mileage you actually did. They know there will be some variation, but they usually won't make a stink about it unless the numbers are off by a significant margin. But even then, they usually don't check if the claim isn't significant, even though it's documented on every single record from whichever shop is doing the repairs. So if your window got broken or you scraped some paint off of the bumper of someone's car in the parking lot, it's not likely to be a big concern. But if you crashed into a $200,000 Ferrari and injured its driver, who is a hot-shot attorney who makes $50,000 monthly and is claiming damages for not being able to work for two months, then the insurance company might investigate a little further. It's not to make your life miserable, but to make sure that you at least did your part by having an accurate insurance policy before they write a check to someone else for $300,000.

If they notice significant discrepancies in mileage, they usually won't deny the claim unless it's just that bad and the payout is massive. One that comes to mind is the famous video of the Bugatti Veyron crashing into the water. I actually spoke to a woman a few months ago who was with the company that had to pay out on that claim, and they were saying that the owner had a policy that insured the Veyron as a pleasure car with 1,000 annual miles, yet the owner had racked on several thousand miles within a few months of ownership, so they were re-visiting the claim, as mentioned on sites like Autoblog earlier this year, since it was so inaccurate. I've written some policies for collector car policies, and you can even select higher mileage (and even unlimited mileage) for them.

Sometimes they might just audit you in the future and request documentation, or they might adjust your mileage for you right away and charge you for the difference that you would've owed, if your mileage had been correct. And sometimes they just change it upon renewal. Or maybe they'll cut their losses and just not renew your policy. But very rarely will they accuse you of insurance fraud for misrepresentation of mileage, though they might deny your claim if they catch you saying something that doesn't make sense, like if you claim the car to be pleasure use only, driven 2,000 miles a year, but you tell them that you got into an accident while on your commute to your job 30 miles away.

The best thing to do is to just be truthful, or at least something that is reasonably accurate and not off by more than a thousand miles or two. A lot of times you end up only saving maybe $10-20 a month (unless you are claiming stupid low miles), which isn't insignificant over the course of a year, but it's not always worth the hassle later on down the road. A lot of you guys gladly avoid the "cheapest" companies that may have questionable reputations, all for the sake of not worrying about getting screwed over by paying another $10-20 a month to go with a better carrier. Why still risk it with being completely inaccurate about mileage?

[EBMCS03]

Originally Posted by DeeezNuuuts83

A lot of you guys gladly avoid the "cheapest" companies that may have questionable reputations, all for the sake of not worrying about getting screwed over by paying another $10-20 a month to go with a better carrier. Why still risk it with being completely inaccurate about mileage?

Well said.


One rather pay more for a "more reputable" company yet want to lie about mileage so they can save money. Just not worth it if you happen to really get in an accident and the insurance company gives you grief when you need to make a claim.

[Cajun]

I was surprised that my insurance was cheaper with my fr-s than with my '12 Tacoma TSS. Was not expecting that.

[des]

Originally Posted by whaap

It's true that the insurance company would more than likely not persue fraud charges against any one. Also, no insurance company would get heart burn over some small amount of mileage over the estimate. But, what if the mileage was two or three times the amount of the estimate? They would simply void the policy, return your premium as if you had never taken out the policy and you would be on your own for any of the damages.

I believed that, too -- and then saw this yesterday! Not regarding mileage, but named insureds. Fraud charges, restitution, the whole bit.
http://special.app.com/article/CN/20...-out-of-39-000

[FR-S Matt]

My insurance went down from my 2002 Camaro to my FR-S and I actually got really great coverage for around 67 a month. 330 premium. That's a hell of a package to me. My Farmer's agent didn't even know how to quote the FR-S... to hell with them. Tried to quote me a 220 a month premium because of the collision? Ya... right.

[DeeezNuuuts83]

Originally Posted by des

I believed that, too -- and then saw this yesterday! Not regarding mileage, but named insureds. Fraud charges, restitution, the whole bit.
http://special.app.com/article/CN/20...-out-of-39-000

That article presents information oddly. She didn't "scam" them out of $39k really. From what I gather, she claimed to be single rather than married (since her husband's crappy driving record would've increased her rates), which allowed her to save money on her insurance rates compared to if she had claimed to be married and included her husband on the policy. And then eventually, she ended up getting into some incidents herself that resulted in insurance claims, likely contributing a good chunk toward the $39k. But it wasn't really a "scam."

In insurance, it's just called "material misrepresentation" (depending on the company), and like I said in a previous post, the insurance company usually doesn't push it unless there is a big claim, then they start sniffing around for anything odd.

Side note -- I think people's insurance premiums shouldn't be discussed here, as there's already an insurance thread about what you pay monthly.

[Borgore]

I'm surprised I haven't heard Wawanesa in this insurance thread. I got a quote from them a while back which was amazing and beat everyone else out of the ballpark. They do require that you have an almost impeccable driving record, however I have gotten a few speeding tickets(only 1 proven guilty on) and zero accidents.

One Question Though: If I'm in an accident and the fault is of the other drivers, do I receive any sort of penalty on being involved in the accident even though it wasnt my fault? I've been in numerous close calls that I've avoided, and I just think that if I was in an accident, what would happen to my record?

[DeeezNuuuts83]

Originally Posted by Borgore

One Question Though: If I'm in an accident and the fault is of the other drivers, do I receive any sort of penalty on being involved in the accident even though it wasnt my fault? I've been in numerous close calls that I've avoided, and I just think that if I was in an accident, what would happen to my record?

It depends on the company and also the guidelines of the state's department of insurance. MOST companies do not hold not-at-fault accidents against you, though a few do, but obviously they're not weighed as heavily as at-fault accidents. I know Progressive and Foremost do increase rates slightly with the presence of not-at-fault accidents, but again it depends on which state you're in as well.

States that have no-fault coverage (typically associated with PIP) sometimes drill you when you have those kinds of accidents chalked up as a PI (personal injury) claim. For example, in Florida, many companies will no longer accept new clients who have prior accidents with PI claims (whether at-fault or not) within a certain timeframe, usually three years (though a few companies go all the way to five years).

[markmatley]

Originally Posted by fistpoint

USAA insurance requires military service. Family members(children) qualify too. For us that don't have military parents(retired or active), or are not enlisted ourselves, are shit out of luck.

My brother is active Army and I was hoping to squeeze in because of him, but being a brother or sister does not count. Bank accounts on the other hand are available to anyone.

Even with my dad as retired USAF, I do not qualify for USAA insurance (or at least the full coverage) in this great sunny paradise I attend uni at... Bank accounts are also limited in services they can provide for non-military members.

Originally Posted by J2 Motorsports

BS USAA has higher rates than Geico. I am a veteran and their rates didn't even compare.

This.
Besides, GEICO and USAA are similar in the respect that they were borne out of the necessity from the government and/or government employees to protect their members.

Originally Posted by Jaylyons1

I told mine I drive 12k a month (which is probably more than I actually drive) but I was quoted at $140 that and my 2012 exploder.

Off topic but I almost sh*t myself from laughter when I read purposeful spelling blooper.