What Does Your Insurance Provider Really Need to Know About Your Driving History?

Probing questions from auto insurance companies can be nerve-wracking. Auto insurances rates are already high, especially if you’re a young adult or live in an area with high instances of auto collisions. Telling your insurance provider whether you’ve had a collision can lead to heavy expenses and headaches in trying to get insured.

But how much does your insurance provider have to know? And what would happen if you “forgot” to mention a previous collision that occurred years ago? This article will cover what your insurance provider actually needs to know about your driving history.

The bottom line

It isn’t a good idea to lie about your driving history when applying for car insurance. Insurance companies have several ways of verifying your record as a driver. If they do find out that you had a collision that you never declared, there are ways they could punish you.

What happens if they find out you lied

The simplest answer is that the insurance provider could cancel your policy. But it could be even worse if you slip through the cracks.

There are cases where the insurance company doesn’t find out right away. In that case, you may get coverage, but there’s always a risk that the company could take action later on. And if you get into a collision and your insurance provider finds out after the fact, they might refuse your claim.

Similar consequences could play out if you lie about any driving tickets you’ve accumulated over the years.

What about that crash from a few years ago?

The good news is, your collisions impact your auto insurance less over time. If your last collision was in 2020, it could have a drastic impact on your rates. But a collision from 2015 will likely have a substantially lower impact on your premiums. At the end of the day, the effect that a previous collision can have on your insurance costs differs from insurance provider to insurance provider.

Typically, a collision stops affecting your premiums after six years. However, it’s better to play it safe and declare those collisions anyway.

Play it safe and be upfront about collisions

It might be tempting to avoid declaring a collision to keep your rates from skyrocketing, but the reality is that insurance companies have all sorts of tools to look up your driving history. Play it safe to avoid having your insurance policy cancelled or a claim denied in the future.

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