Drivers beware: cheating on car insurance can be expensive

Drivers beware: cheating on car insurance can be expensive

Drivers have plenty of opportunities to save on their car insurance costs. However, some choose to engage in unfair practices such as cheating on mileage to gain financial benefits. It is known that the average annual expenditure of Germans on motor vehicle liability insurance is considerable. The amount depends on the mileage of the vehicle. A lower mileage rating may result in a lower premium, but the consequences in an accident can be devastating.

If drivers manipulate their mileage information, this can result in the insurance company refusing to pay in the event of damage. Insurance premiums are based on various factors, including mileage, age of the vehicle, number of drivers and location of the vehicle. It is advisable to specify the estimated annual driving requirement as accurately as possible in order to be adequately covered in the event of an emergency.

Some insurance companies offer mileage-based car insurance, where the premium is estimated at the beginning of the year and the actual mileage is reported at the end of the year. This option may benefit occasional drivers as they may be able to save money. However, it is important to note that such insurance can become more expensive if the kilometers driven exceed a certain threshold.

It is essential to be honest and accurate when reporting mileage to avoid possible negative consequences. Drivers should be aware that cheating on mileage is not a long-term solution and can lead to significant financial and legal problems. It is crucial to comply with vehicle insurance requirements and provide transparent information in order to be adequately protected if necessary.