What happens if I am not truthful when I buy insurance?

If you deliberately mislead the insurance company either directly or through the broker or agent, then you could find yourself without insurance. The first concern would be, if you were aware of not telling the truth or just mistaken. If it is an extreme situation, then the insurance company can refuse to insure you and even go backwards to the beginning of the policy, and say "no insurance". Imagine how difficult this would be, if you have had a claim!

Insurance is a contract between two persons. The contract has to have certain parts. One of those parts, is an agreement that there has to be genuine-intention by the person.

You would not have genuine intention, in case of fraud. The policy could be declared void, and cancelled back to the start of the policy.

If this was determined after you had an automobile accident, then you could find yourself without the funds to repair your vehicle. If you are "at fault", then your liability to the other vehicle and its occupants, could be reduced to Absolute Liability, which is only $200,000. If there are injuries, then you could find yourself facing civil court litigation, and in danger of losing everything you own. Future earnings could also be at risk.

Even if your record is bad, you need to make a plan to improve the situation. You do not want unpleasant surprises. You must be honest and forthcoming when placing insurance. Be open in your talk with your agent or broker.