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Your Policy May Be Canceled. If you lie to your insurance company about the cause, injuries, and other details of your car wreck, you risk losing your policy completely. Insurance companies do not want to work with individuals who lie and try to take their money.
If you lie to your insurer: Your policy could be invalidated or terminated. Your claims could be rejected. Claims made against you might not be paid out.
Wrong or false information on your application for life insurance or medical questionnaire can invalidate your life insurance policy because the life insurance company can void the contract due to fraud. This can happen even if you did not intend to lie on your life insurance application.
It may impact your future insurability, and the consequences may vary based on the severity of the omission. For instance, intentional fraud or forgery may be punishable in criminal court. If you are caught lying during the application process, the insurance company can immediately decline coverage.
Whether your errors are intentional or not, if you have to file a claimfor a crash, saythe insurance company will probably find out. Claims investigators make an effort to verify whether the application was accurate.
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Depending on the severity of the lie or lies, the insurance company may immediately decline coverage if the discovery is made during the application process. Further, the incident will be logged into the Medical Information Bureau (MIB) database, which is accessible by other insurance companies.

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