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In: Finance

What happens if you lie about your driving history? What happens if you don’t get auto insurance and decide to drive your car and get into an accident?


What happens if you lie about your driving history? What happens if you don’t get auto insurance and decide to drive your car and get into an accident?

Solutions

Expert Solution

Drivers usually lie about their past accidents, past driving tickets, their address, who mainly drives the car, etc. in order to pay less premiums on insurance. Insurance companies will require higher premium for past accidents history, if the car is not driven by the parents but their kids, driving tickets, etc. Later when an accident actually happens, insurance companies will find out the truth and won’t pay for the insurance and would take legal action against the customers. Still, people try to li to save on the insurance premium which might save a small amount n the short run but might create heavy loss in the long run.
If you don’t have an insurance and decide to drive and meet with an accident then the cost of repair , damage of the parts of the cars are borne by the person which are very costly. Moreover, in case of first time offence the driver might not be jailed. But, repeat offender can also serve in prison for this offence. The legal department might charge you and keep track about the accident when it occurs the first time. The cost of damages along with legal action and jail time might be a strong deterrent to god for an insurance of car.

jeff jeffy answered 2 years ago
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