It is common knowledge that car insurance in Michigan is expensive. Despite promises by insurance companies to bring down rates with the recent changes to the No-Fault law, it seems the cost just keeps going up every year. Just like anything in life, when you are trying to make ends meet, one of the first questions people ask is, “Can I get a better price for this?” While that is the right question, it is important not to cut corners that could end up costing you dearly in the long run.

It is common for many people – especially those living in Detroit and other major cities who are unfairly charged based on their address rather than their driving record – to try to bring down the cost of their car insurance by “fibbing” on their application. Often, people will use a relative’s suburban address on their policy or fail to name people who are staying in their house. Although it may seem like a harmless way to make your payments cheaper, in reality, this is fraud under the law and can lead to disastrous consequences. If you get into an accident, the first thing your insurance company checks is whether your policy and the information in it are true. If they find that any portion of your application was incorrect – no matter how small – they will deny your claim. You will be responsible for paying your own medical bills and will have no one to cover your time off work. Even if the other driver was at fault, you will be unable to sue them for damages. Even if you had been paying the insurance company for years without making a claim, that one mistake can cost you everything in the event of a crash.

There are better ways to save money on your car insurance that don’t require you to fudge the facts:

1. Shop other insurance companies: Even if you have been with the same company for years, it is worth checking around for better rates. Different companies calculate their costs in different ways so a simple call can save you a lot of money for the same coverage.
2. Talk to your insurance agent about adjusting your coverage: Sometimes people pay for more insurance coverage than they actually need. An insurance agent should be able to help you understand what coverage is right for your needs and could bring down the cost of your bill.
3. Ask about discounts: Your insurance company may have discounts you may not have known about, and it never hurts to ask!
4. Bundle policies: If possible, try to share policies with other people in your household. Also, if you have other coverage like homeowners or renters with another company, ask about “bundling” them into one policy with the same company to save money.

Car insurance is expensive, but if you get into a crash, being dishonest with your insurance company is the same as not having any coverage at all. Don’t take the risk!