By SIA Group | 4 min read | Published July 28th, 2025
Don’t Let Small Mistakes Cost You Big
Applying for auto insurance may seem like a routine task. However, small errors on your application can lead to big consequences—such as denied claims, unexpected rate hikes, or policy cancellations. Fortunately, many of these mistakes are easy to avoid if you know what to look for. In this post, we’ll break down the most common auto insurance application mistakes and how to prevent them.
1. Not Listing All Drivers
First and foremost, make sure to include everyone who regularly drives your vehicle. Even if someone only uses your car occasionally, they still need to be listed. Otherwise, if they’re involved in an accident, your insurer may deny the claim. For that reason, it’s always better to err on the side of full disclosure.
2. Using the Wrong Vehicle Location
Next, double-check that the location where your car is primarily kept is accurate. Insurance premiums are partially based on geographic risk factors—such as crime rates and accident frequency in your ZIP code. If your car is kept somewhere other than the address listed on your policy, it could cause issues when filing a claim. Therefore, it’s important to keep your garaging address updated.
3. Leaving Out Driving History
Another common mistake is failing to report your full driving history. While it may be tempting to leave off minor violations, insurers will run a motor vehicle report either way. If your application doesn’t match their findings, it can result in higher premiums—or worse, a canceled policy. Instead of taking that risk, be transparent from the start.
4. Failing to Disclose Business Use
Do you use your personal vehicle for work? If so, be aware that standard auto policies typically exclude business use. Whether you’re delivering goods, transporting clients, or driving for Uber or Lyft, you’ll likely need a special endorsement or commercial policy. Without it, any claims related to business use could be denied. As a result, it’s critical to clarify how you use your vehicle.
5. Skipping Policy Updates After Life Changes
Life changes fast—and your insurance policy should reflect that. For example, moving to a new address, adding a teenage driver, or purchasing a second vehicle all affect your coverage. When these changes go unreported, it could lead to coverage gaps or missed discounts. So, be proactive about keeping your insurer informed.
Why Accuracy in Auto Insurance Applications Matters
When it comes to auto insurance applications, accuracy isn’t optional—it’s essential. Even small inaccuracies can result in:
- Voided or canceled policies
- Denied claims during a loss
- Increased long-term costs
- Coverage gaps when you need protection most
To avoid these outcomes, always review your application for accuracy and update it when needed.
How SIA Group Can Help
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Contact us today to speak with a personal insurance advisor and make sure you’re fully protected.
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