Honesty is the Best Policy With Your Insurer

Honesty is the Best Policy With Your Insurer

It’s important to be honest with your insurer. If you lie or give false information to your insurer, you can face major negative repercussions down the road.

The Possibility of Denying Your Claim

If you present a claim and your insurer then realizes you lied to them, they have the right to deny your claim. For example, if you lie and say you have snow tires and get into an at-fault collision, you could be forced to pay the repair bill for both your vehicle and those of other parties.

You also may be denied Statutory Accident Benefits.

Keep in mind that when you sign off on a policy, you are confirming that the information is correct and you are covered for what is mutually agreed on. Thus, if you lie to get yourself a discount, your insurer will not cover the cost of a claim outside of what was previously agreed upon.

May Void Existing Coverage

If you lie to your insurer, the insurer may void your policy. If you are dishonest with them regarding the policy you agreed upon, you are essentially breaking your contract with your insurer. In response they can void your coverage, forcing you to look elsewhere for insurance.

Harder to Find Insurance into the Future

If your policy is voided for being dishonest with your insurer, you will find that moving forward you will have a hard time finding a new insurer. Your insurer wants to assume the lowest amount of risk possible when taking you on as a customer, and they would see your dishonesty as a high level of risk. Many insurers would thus be wary about taking you on if you are labeled as a dishonest customer. And if they do, they would be forced to charge you more for your coverage.

Legal Action

In some extreme cases, legal action can be taken against you for lying to your insurance provider. Insurance fraud is a serious offense and can result in anything from a fine, all the way to jail time. Thus, it is best to err on the side of caution and just always remain truthful when filling out your application or changing your policy in any way.

The repercussions for being dishonest with your insurer are lasting and impactful. Always stick to the truth when it comes to dealing with your insurance company.

If you or a loved one have been injured in a collision, you are entitled to receive help. Contact us at JEWELL RADIMISIS JORGE LL.P and a member of our team will be happy to assist you.

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