So a friend of mine bought a new car and looks like it's gonna cost him about $2k a year to insure it. However, if he just tells the insurance company he's gonna use his motorcycle to commute, so his car is just for pleasure (5k miles a year), his insurance is only $1300. Now, do you guys see any consequences that could result from this miscalculation of yearly mileage?

 

Sure, If he ever has to file a claim and they check the mileage on the car and see it's way more than the yearly average he claimed on his insurance, he could be held responsible for the difference. I know, it's happened to someone I know.

Don't try it, it's not worth it. It's technically insurance fraud and they are cracking down big time on that.

 

Just don't file for the claim right away

Insurance is a pain. Useful sometimes, but still a pain.

 

It is insurance fraud and depending upon the policy may give the insurance company a reason to deny coverage.

 

I know, I'm not saying I'd do it

 

Actually, I have AAA and I don't think they ever checked the mileage on either of my cars... I'm actually almost certain of it. So they have no idea how many miles were on my car to begin with... Wait, on second thoughts they may know how many miles are on my CL, but I can guarentee they have no idea how many miles are on my honda a.k.a. the beater!