said by Nick :

I got rear-ended while driving my mothers car. We both reside at the same address but have different insurance companies. I need to verify but I am pretty sure she has comprehensive and collision on that vehicle and I have both on my insurance for a different vehicle.

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RATING INFORMATION
This vehicle is driven a maximum of 7,500 miles per year, for pleasure, adult age xx, with no unmarried driver under 25, good driver rate

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said by MrMoody :

Under the header of RATING INFORMATION, in other words the information used to calculate your rate. It also says maximum of 7500 mi/yr, if you hit 7501 do you have no coverage? I know you do. But don't believe me, ask a claims adjuster (not an agent, half of those don't know jack). Tons of people don't report teenagers; excluding unauthorized drivers from coverage would result in mass chaos.

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Providing false information to your insurance company is considered a form of fraud. If you are caught committing or attempting to commit insurance fraud, be prepared to face 6 serious consequences:

1. Your insurance policy may be cancelled

2. Your reported claim will be denied

3. You will face higher insurance premiums

4. You may be denied car insurance coverage in the future

5. If found guilty under the Insurance Act, you will face a fine of up to $100,000 for the first offence and up to $200,000 for additional offences for non-criminal offences

6. If found guilty under the Criminal Code of Canada, you will face a maximum of 10 years in jail for fraudulent cases over $5000 for all criminal activities

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Telling lies on an auto insurance application is far from wise. Procedures for checking the information provided to insurance companies are increasingly sophisticated and extensive, making it progressively more likely that false information will be exposed. As well as the probability of being detected, a person who lies on an insurance application runs the risk of having the policy rescinded and being obliged to pay costs that may amount to tens of thousands of dollars.

The law is quite clear on the penalties that apply to people who give false information when completing an insurance application. An example of this is California Insurance Code Section 359. Under this code section, if a false representation is made in relation to any material point, whether it is affirmative or promissory, the company can rescind the policy and it will also be regarded as invalid "from the time the representation becomes false". This means in such a case that the policy is deemed to have actually provided no cover for the person who gave the false information.

A spokesman for the California Department of Insurance, Scott Edelen, points out that more than one problem can occur for someone who lies on an insurance application. As well as having the policy rescinded, the person may also be liable financially. This could happen if, during the rescinded policy period, any claim damages were paid. Such claim can involve large amounts, leaving the policy holder owing a lot of money.

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