The Consequences of Lying About Your Marital Status on a Car Insurance Application

Your relationship status, car insurance, and homeowners insurance all have an interesting relationship of their own. Unfortunately, even the most amicable divorce isn’t without its issues. You’ll have a lot to do, but it’s important to figure out your coverage during these tough times. Everything is important to know, like how much you pay, who pays, and what protections are in place. Failing to do so could result in costly issues further complicating an already uncomfortable personal matter. In addition to home insurance, let’s explore marital statuses and car insurance for Texans.

Purchasing car insurance is often a tedious process. You have to provide a lot of personal information to insurance companies like your name address date of birth, driving history, and marital status. Some people, hoping to get lower premiums, may be tempted to lie about certain details on their application, especially their marital status. However, this is never a good idea and can have serious repercussions if you get caught.

In this article, we’ll explore why insurance companies ask about your marital status, the consequences of lying on your application, and tips for finding affordable car insurance legally.

Why Do Insurance Companies Ask About Your Marital Status?

Insurance companies use your marital status as one of the factors that determine your risk profile. Statistical data shows that on average, married drivers tend to file fewer claims compared to single drivers. This makes married applicants seem like lower risk customers to insurance companies.

Some of the reasons married drivers are seen as lower risk include

More responsible driving habits – Married drivers may drive more cautiously to avoid accidents that could impact their family.
Less frequent driving – Married couples often share one car and have less overall driving time compared to single people.
Higher financial stakes – Married people may have more assets and be more motivated to avoid premium hikes caused by accidents and claims.
Bundling policies – Married couples can bundle auto insurance with home insurance for multi-policy discounts.

As a result, insurance companies often offer lower premiums to married applicants compared to single applicants with similar driving records. The premium difference can be as much as $100-200 per year.

Consequences of Lying About Your Marital Status

While lying about being married may get you lower premiums initially, it can have severe consequences down the line if you file a claim and the insurer finds out the truth. Some potential consequences include:

Claim denial – If you lie on your application and file a claim later, the insurance company can retroactively cancel your policy and deny the claim. You would have to cover all costs out-of-pocket.
Policy cancellation – The insurer can cancel your policy altogether if they discover you lied on your application, leaving you without coverage.
Premium increase – The insurance company could increase your premium significantly after discovering your marital status lie. This price hike could last for years.
Difficulty finding new coverage – Lying on an insurance application constitutes fraud. This makes it very hard to find coverage from other insurers later.
Lawsuits and fines – In some states, lying on an insurance application can lead to lawsuits, fines, and even criminal charges if it is seen as insurance fraud.
Financial losses – Without coverage, you are liable for all losses caused in an at-fault accident. This could mean paying thousands in auto repair bills and medical expenses for other parties.

As you can see, lying to get lower premiums can ultimately cost you much more in the long run if found out. It simply isn’t worth the risk.

Tips for Finding Affordable Car Insurance Legally

Luckily, there are several legal ways to get cheaper car insurance premiums besides lying about your marital status:

Compare quotes – Get quotes from at least 5-6 insurers to find the best rates. Rates can vary wildly, so shop around.
Raise your deductibles – Opting for higher deductibles like $500 or $1000 can lower your premiums significantly. Just be sure you have savings to cover the deductible if needed.
Improve your credit – Insurers use your credit as a rating factor in most states. Maintaining good credit can help you qualify for lower rates.
Ask about discounts – Take advantage of any multi-policy, anti-theft device, safe driver, and low mileage discounts offered by insurers.
Consider usage-based coverage – Usage-based plans with telematics track your driving and base rates on actual mileage and habits.
Increase policy limits – Higher liability coverage limits show financial responsibility and may qualify you for lower premiums.
Take a defensive driving course – Completing an approved defensive driving course can make you eligible for a discount.

The key is to discuss your options directly with insurance agents to find the optimal legal strategy for reducing your car insurance costs. Being transparent about your personal situation and driving requirements can help them determine the most suitable coverage and discounts for your profile. This is far better than jeopardizing your financial security by lying on your application.

The Bottom Line

Lying about being married to get lower car insurance premiums may seem harmless initially. However, it can lead to claim denials, lawsuits, fines, and difficulty getting coverage when you need it most. It’s better to explore legal discounts, adjust your coverage, improve your driving record, and compare quotes from insurers to find affordable rates tailored to your situation. Your insurance agent can provide guidance on reducing your premiums without resorting to fraudulent practices. This ensures you get adequate protection without any nasty surprises down the road.

Car Insurance During Separation

Separated couples have many challenges to overcome and car insurance is yet another. To go over this one more time, if you are separated from your partner but still live together, it’s often best to… You don’t have to change anything outside of notifying your insurer and it can make things easier.

But this is a best-case, easy-to-follow example. In real life, things don’t always work out that way, and everyone should be aware of one important thing: what happens if you own a car together?

Should this be the case, you’ll need to first decide who will own the vehicle after the separation. As soon as you decide, you’ll need to take the other person off of your insurance and cancel the car’s title and registration.

Car insurance for separated couples is an important topic and these steps are critical. No one who doesn’t own the car should be on the policy, the title, or anything else that could make them financially responsible for any losses that happen.

Do Both Spouses Need To Be on Homeowners Insurance?

No, in some cases, you will not need to have both spouses on the homeowners insurance policy. The homeowner is the person that needs to be on the home insurance policy.

If both spouses own the home then both names should be on the policy. Otherwise, if there is only one spouse that owns the home, their name is the only one needed.

New study says insurance companies discriminate based on marital status

FAQ

Does marital status matter for car insurance?

Yes, marital status affects insurance in most states because marital status is one of several personal characteristics that insurers take into account when determining premiums. Married drivers are statistically less likely to file a claim, so they usually pay about $30 – $50 less per year than an unmarried driver.

What happens if you lie about marital status?

It depends on what kind of document it is and for whar purpose the lie was made but at its most basic, if one were to lie on a sworn affidavit it would leave them open to charges of criminal perjury.

What happens if you lie about car insurance?

Car insurance fraud costs insurers billions of dollars. This is passed on to consumers who end up paying higher premiums. 8 If you get caught, your policy could be canceled and you could be denied further coverage. You may also face fines, penalties, and even jail time.

Why do insurance companies need to know your marital status?

Why does marital status matter to insurance companies? Simply put, statistics often show a correlation between marital status and risk levels. Married drivers, in general, tend to get lower rates than single drivers, as they statistically pose a lower risk of accidents.

Do you lie on your car insurance application?

Millions of Americans lie on their car insurance applications to get better rates. Motorists may try to cover up traffic tickets, accidents, and more that could make them pay higher insurance rates. Insurance companies often discover the truth when an insured person files a claim.

How does marital status affect car insurance?

Your marital status is a rating factor used by car insurance companies to help determine how risky of a driver you are. In 2019, married drivers pay $86 less than single, divorced, and widowed drivers.

Do married drivers pay less for car insurance?

Because married drivers are seen as more financially stable and safer drivers, they typically pay less for car insurance. On average, a married driver pays $149 less per year for car insurance than does a single, widowed or divorced driver. Let’s explore car insurance rates by marital status and tips to save, no matter your marital status.

Should I Lie To my car insurance company if I’m married?

Lying about anything to your insurance company is a bad idea. If they find out about your lie they might deny a claim or cancel your policy altogether. Rather than lying about being married (or anything else) you should compare quotes from multiple car insurance companies to make sure you are getting the best possible rate.