Some people think it's acceptable to lie about past accidents, traffic
convictions, claims and prior insurance cancellations when applying for a car
insurance policy. The mind-set of these consumers is often that insurance
companies owe them something, especially if they've never reported a claim.
Providing false information to your insurance company is considered a form of
fraud. If you are caught committing or attempting to commit insurance fraud, be
prepared to face 6 serious consequences:
1. Your insurance policy may be cancelled
2. Your reported claim will be denied
3. You will face higher insurance premiums
4. You may be denied car insurance coverage in the future
5. If found guilty under the Insurance Act, you will face a fine of up to
$100,000 for the first offence and up to $200,000 for additional offences for
6. If found guilty under the Criminal Code of Canada, you will face a maximum
of 10 years in jail for fraudulent cases over $5000 for all criminal activities
Telling the truth on your car insurance application can save time and money.
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