Insurers weigh hundreds of factors when determining your risk, he said, and they are likely to check details you provide against those they have access to in their own databases and third-party reports such as C.L.U.E., which catalogs recent auto claims. Your application could be denied.
Misrepresentations are even more likely to come to light amid insurer investigations if you have to file a claim. (In the NerdWallet report, 23 percent of consumers had ever filed an auto insurance claim.)
State laws vary but, generally, a lie that is material to your claim allows the insurer to deny or limit coverage on that claim — leaving you on the hook for that damage, Kochenburger said. The insurer may be able to cancel your policy, and the lie could even run afoul of state insurance fraud laws.