It is always best to be honest about your information when filling out either your initial insurance application or an insurance renewal questionnaire. If you do not answer truthfully, in most states this would be misrepresentation and could be considered insurance fraud.

In 1995 the Governor of New Jersey signed into law an amendment to the NJ Insurance Fraud Prevention Act. The law prohibits an insurance applicant from knowingly providing false or misleading information to an insurer in order to obtain a policy or to try and reduce their premium.

Violators of this NJ law are subject to a maximum $5000 civil penalty and could face additional criminal penalties. This amendment to the law tries to prevent underwriting fraud, which is what someone giving incorrect information is doing since the underwriters of the insurance company will have inaccurate information in which to determine the rates.

If you are found to be lying on your renewal questionnaire, likely your insurance provider will be allowed to cancel your policy and could turn you over to the insurance fraud division. If you find your insurance rates are too high after turning in your renewal questionnaire, you can start an auto insurance rate quote for NJ here with us.