A TikTok user went viral after posing a risky hypothetical: What happens if you lie to your car insurance company to score a cheaper rate?
Andrew (@andrews_garage), who jokes about making “bad financial decisions” on his page, raised the question in a recent clip. “How legal is this?” he asked in the caption.
In the video, Andrew wondered if it was against the rules to fudge his annual mileage, hypothetically claiming he drove 5,000 miles a year when in reality it was closer to 20,000.
“I wouldn’t purposefully lie to them to get a lower rate on my premium because who would do that? That’s wrong!” he said with mock innocence.
He doubled down on the “hypothetical” angle, insisting he’s well under the 5,000-mile mark, but pressed viewers on whether an insurer would care—or what would happen if they caught the lie. As of this writing, the video had garnered over 327,500 views.
Is It Illegal?
Lying to your insurance company about how much you drive is considered insurance fraud, which may sound harmless, but can lead to serious consequences, including denied claims, canceled policies, higher premiums, and, in some cases, criminal charges, according to Investopedia.
In short, to answer Andrew’s original question: Yes, it’s illegal, and the small savings on your monthly bill aren’t worth the risk.
Say you get into a car accident and need to file a claim. If an insurer finds out you underreported your mileage, it can deny your claim altogether. That leaves you responsible for all repairs and medical bills. It can also cancel your policy if it finds evidence of misrepresentation or fraud, which could leave you uninsured and struggling to find a new insurance provider.
Even if your current insurer doesn’t drop you, it will likely raise your rates. LoPiore Insurance Agency, an insurance agency based in Massachusetts, noted that drivers caught lying are flagged as high-risk, making coverage more difficult and way more expensive. In some states, including Massachusetts, misrepresenting mileage is considered a form of criminal fraud, with fines or even jail time possible.
Insurers are constantly monitoring their customers, and there are many ways to detect dishonesty. For example, they can request odometer photos, review maintenance and inspection records, check public records, or access state vehicle history databases. And if you file a large claim, an adjuster will scrutinize your documents for any discrepancies.
How Can I Save Money on Car Insurance?
There are safer ways to reduce costs without breaking the law. Shopping around for quotes, asking about discounts, increasing your deductible, or bundling policies can all help lower your premiums.
For drivers who genuinely drive fewer miles, NerdWallet reports that pay-per-mile insurance is an option that charges based on actual usage, rather than estimates.
Viewers Warn Against Lying to Insurers
Commenters were quick to warn Andrew against lying to an insurance company. As NerdWallet put it, there’s no such thing as a “small lie” on an insurance application.
“Insurance companies track your miles,” one viewer wrote. “When you have your vehicle serviced, it goes into a national database that they access. Technically, they could deny any claims.”
Another added, “If your car’s odometer is higher than what you ‘pay for,’ then your insurance company can refuse or reduce the payment in case of an accident.”
Others agreed that while minor discrepancies might get overlooked, the risk isn’t worth it.
“If it’s a small difference, odds are they’d ignore it if something happens,” one commenter said. “If something were to happen, and they realize you lied, they could potentially void the policy.”
Still, not everyone viewed it as a significant concern. Some commenters insisted they’ve lied about mileage without facing any consequences.
“Perfectly fine, mate,” one viewer wrote. “I tell mine 10k a year, do 30k+, even had someone hit me, never questioned the mileage.”
Another asked, “How would they ever know?” while a third claimed, “My insurance told me point blank, ‘We don’t care.’”
Motor1 has reached out to Andrew via a direct message on TikTok.
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