Reviewed by Kara H. North, Managing Attorney at Moxie Law Group. Last reviewed September 21, 2026.

Reviewed by Kara H. North, Managing Attorney at Moxie Law Group. Reviewed August 8, 2024.

What Happens if You Lie to the Insurance Company? 

Will the Insurance Company Know If You Lie? 

YES! The insurance company will know if you lie about your involvement in an accident or your prior accident history, or even prior injuries. Insurance companies make more money when they can deny claims, so they scour the scene of car crashes looking for evidence that would enable them to deny the claim. For example, if insurance company A and insurance company B are representing their respective clients involved in the same car accident, both insurance companies are going to conduct independent investigations to try to figure out what happened and who was at fault. This may mean interviews, physical evidence, photo evidence, and video evidence.  They may interview eyewitnesses, other passengers, and more. Insurance companies also have access to national databases that allow them to verify any other accidents you’ve been involved in, and what injuries you claimed. Insurance companies are usually very thorough. Sometimes insurance companies will hire private investigators to follow you around and video record you in attempts to obtain evidence of you doing various activities you claim not to be able to do because of your injuries. 

Can You Go to Jail for Lying to the Insurance Company? 

Yes, you can go to jail on felony charges for lying to the insurance company. However, the exact charges you incur will depend upon your situation. Generally speaking, the more egregious the behavior the more likely it is that you could be going to jail. Insurance companies recognize that there’s such a thing as an honest mistake. So if you tell them that the accident occurred at 2:20 when it really occurred at 2:17, you’re probably not going to jail for that, nor will you face consequences. However, if you attempt to tell them that your car’s damage is due to a hit and run when, in reality, you hit a pole while drunk, you’re more likely to be found out and face criminal consequences. These guys are experts at finding out what happened—even when there’s no witnesses. Do not take a chance and lie to the insurance company. 

What Happens If You Lie to the Insurance Company? 

A lot of things can happen if you get caught lying to the insurance company and what exactly happens to you will depend on a lot of factors such as the specifics of your situation and the laws in your area. While we can’t tell you what will happen with any certainty, there are some things that could happen. Your insurance may decide to drop you when they find out you’ve lied—and they will likely find out. You could be sued by their attorneys and ordered to pay for the cost of investigating the claim. As previously mentioned, you may face criminal charges, the severity of those charges could also depend on the specifics of your case. If you are lying about your injuries or prior accident history, this can go a long way to damaging your credibility in your case, and likely cause you to lose your case in front of a jury or prevent your case from settling for a reasonable amount. Lastly, it may be more difficult for you to get insurance if you’ve got a history of lying to insurance companies. This may mean that you have to purchase more expensive insurance or even join a state assigned risk pool. 

Is There Ever a Good Reason to Lie? NO! 

Lying to the insurance company is a bad idea because they will almost certainly find out that you’ve lied. When they investigate accidents, especially large ones, they review a lot of evidence and have multiple (likely recorded) phone calls with witnesses and those directly involved in the accident. If you lie to the insurance company, they’re very likely going to find out about it—even if you hit a stationary object and claim that it was a hit and run. While your premiums could go up if you cause an accident, your insurance will still cover your damages as well. Remember, your insurance policy contains language that requires you to cooperate with any investigations conducted by your insurance company, and failure to do so would likely result in them denying coverage to you. When you pay for insurance, you’re paying for a company to financially cover you in the event of a car crash that was caused by your negligence. Many insurance policies even have accident forgiveness policies where they don’t raise your premiums after one crash if you’ve been accident free for a certain time period.  

Lying to Insurance FAQs

What happens if you lie to an insurance company?

It can lead to a denied claim, a cancelled policy, and in serious cases accusations of insurance fraud. Honesty protects both your claim and yourself.

Can an insurer deny my claim if I made an honest mistake?

An honest mistake is different from intentional misrepresentation, but insurers may still use inconsistencies against you. It helps to be careful and accurate in every statement.

Should I talk to the other driver’s insurance company?

Be cautious. You are not required to give a recorded statement to the other driver’s insurer, and it is wise to get advice first. Our Utah car accident attorneys can handle those conversations for you.

What Should I Say If I’m at Fault for an Accident? 

It’s not your responsibility to decide who’s at fault or admit that you’re at fault at the scene of an accident. The insurance companies are here to decide that for you. However, once you connect with YOUR insurance company to set up your claim, you can tell them if you felt like you were at fault. That will enable them to handle the claim appropriately. At the scene, don’t say you were at-fault, even if you think you were. It is in your insurance company’s best interest that you are found to be not at-fault. Therefore, they will provide you with a defense attorney and handle everything. All you have to do is answer the questions that the lawyers and police officers ask you honestly. In the event that you are at fault, your insurance coverage should cover the damages you caused. The only time to worry is when you cause a crash while driving without insurance—in which case you don’t have an insurance company to lie to. Bottom line: don’t lie to insurance companies. Even if you think a situation is bad, it can only get worse if you lie.