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Avoid these big mistakes on auto insurance applications

Why you shouldn't fudge any information on your car insurance application.

Don't make these mistakes when applying for insurance.

Skipping a question when filling out a car insurance application may not seem like a big deal, but what you omit or enter incorrectly can create issues down the road. Errors on the application can result in a denied claim or even a policy revocation.

Mistakes happen, but some applicants intentionally try to hide or alter information to get lower premiums. The cost of this insurance fraud is spread among all the other policyholders, typically causing their rates to go up.

Below are some of the mistakes insurance buyers commonly make.

Not reporting all the drivers for the vehicle

Most often, the people who aren't listed on the application are teenage drivers or adults with traffic infractions on their records. If a driver who's not rated for a vehicle is involved in an accident, your premiums may go up and your policy may be canceled. Covering everyone who drives might save you big in the long run.

Not listing all owners of the vehicle you are insuring

It is important to list all owners of the vehicle you are insuring. This ensures proper coverage should you need to present a claim. Not listing all owners leads to a possibility that an owner who is not listed is not covered when an accident occurs.

Not listing the actual parking location for the vehicle

Vehicles housed in garages are typically safer and less prone to accidents than those parked on the street. If you do park on the street, make sure that's what goes on your application.

Guessing about the miles driven

Report your mileage accurately. If you're in an accident and file a claim, the repair estimate reveals the mileage discrepancy. Standard checks performed during smog emission testing or vehicle servicing also reveal the true number.

Forgetting to mention business travel

If you omitted that your vehicle is used for business, then later have an accident while performing business activities, your policy could be canceled.

Not listing your tickets or accidents

Any check of Department of Motor Vehicles records will quickly reveal this error. Always report the tickets you've received or the accidents you've been in.

Not updating policy information

If you neglect to update your insurance provider when your situation changes — a new job with a longer commute, adding another driver to a vehicle, a minor accident, etc. — you may end up paying more for coverage or losing important discounts.

To update your auto policy, contact your agent for assistance or log in to manage your account.

This information contains only a general description of coverages and is not a contract. Details of coverage or limits vary in some states. All coverages are subject to the terms, provisions, exclusions, and conditions in the policy itself and in any endorsements. For further information, please contact a State Farm agent.

The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.



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