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Avoid These 6 Big Mistakes of Auto Insurance Applications

Auto insurance application with car key and pen

If you’re filling out auto insurance applications, a lot of information can get lost within your mind. Whether you are purchasing a new auto insurance policy or switching auto insurance companies, it’s important that you provide all the required information and be honest when you apply. Sometimes though, when you’re applying for auto insurance, mistakes can happen. Here are some of the most common mistakes and omissions made when filling out an auto insurance application.

1. Not Listing All Drivers

It’s important to list everyone who will be driving your car on your auto insurance policy. In many circumstances, applicants forget to add their teenage driver onto their policies. In other cases, some drivers omit adding a spouse or other adult driver on their policy due to their poor driving record. In order to ensure that they are covered, you must include them in your application or risk paying higher premiums. In some cases, they may cancel your insurance.

2. Not Listing the Car’s True Parking Location

Where your car is located has a significant impact on your rates. If your car is mostly parked in the street as opposed to a garage, it could affect your insurance rate since cars parked in the street are more prone to accidents compared to sheltered cars. If you let your child take the car to college in another state, that’s another thing that could affect your coverage. Whether it is intentional or due to an honest mistake, failing to report where your car is going to be can affect your auto insurance quotes and could jeopardize your coverage.

3. Not Mentioning Business Travel

If you use your vehicle for business purposes and get into an accident, a standard individual car insurance policy may not provide enough coverage. If you use your personal vehicle for business purposes, you may need to get a commercial auto insurance quote rather than a standard one. If you don’t mention to the auto insurance company that you use your car for business trips and the like, they may cancel your policy or refuse to provide coverage after an accident.

4. Providing Inaccurate Mileage

Many people guess their mileage inaccurately or report lower mileage in the hopes of getting a lower rate. While that may work in the short term, it won’t work for long. If you get into a car accident, the repair shop’s estimate will have the accurate mileage in their report. Smog emissions tests and other standard maintenance records will also show any mileage discrepancy. It’s best to just avoid controversy and report the actual mileage of your car on your auto insurance online application..

5. Not Updating Your Policy According to Life Changes

Got a new job with a longer commute? Moved to another part of the city? Got married and having your spouse drive your car? Not reporting these changes in your life to your insurance company can cause trouble in your coverage if you don’t report them. In some cases, you may be overpaying for coverage and actually missing out on some discounts.

6. Omitting Driving Infractions

Arguably, the biggest mistake you can make is not listing your traffic violations, previous accidents, or any other driving infraction on your application. Most people know that insurance companies can get this information easily from the DMV, but many applicants don’t know that failing to report their accident history when the accident wasn’t their fault or was done by another driver listed on their policy could hurt them. It’s best to report every bit of your driving past so you don’t get caught in a lie, whether it was intentional or not.

Consequences of Providing False Information

The consequences of making a mistake or being dishonest on your auto insurance application vary, but they don’t yield positive results. Depending on the company and circumstances, your auto insurance policy premiums may go up due to the information that was withheld from the insurance company. Other times, the auto insurance policy may not be renewed or cancelled. Claims made on the policy would be subject to more extreme scrutiny or outright refused. These mistakes not only hurt or break the relationship with your current insurer, but will also make it harder for you to purchase a policy from their competitors. It is best to be honest in your answers and be thorough to make sure your auto insurance application is accurate.

Need help applying for a good yet cheap auto insurance policy in Alabama or Louisiana? USAgencies can help. USAgencies can provide a wide assortment of car insurance rates from the top providers in the nation for you to pick and choose. Give us a call at (800) 420-3712  or get a free car insurance quote online to save big money on great car coverage today.