How Much Will It Hurt Your Claim If You Provided Inaccurate or Wrong Information on Your Insurance Application?
Lying or failing to double check your insurance application could, in fact, hurt your ability to pursue compensation in a claim. Generally, the type of error and the surrounding circumstances will affect how much the inaccuracy will affect your ability to collect compensation.
The worst-case scenario is that you could end up uninsured with the cancellation of the policy, or you could have to pay for any discrepancy in rates or compensation that arises from the difference between the application information and the accurate data. It could also make it difficult to find alternative insurance coverage.
Now you know what could happen if your application is inaccurate, but that isn’t always what does happen. If you miswrote your name, address, or other identifying information, those are pretty fast fixes. However, if you fail to list the actual expected uses for your vehicle (like ride-sharing, for instance), you could end up without coverage if the insurance company finds out. The information outlined below can help you understand some of the common issues related to incorrect insurance forms.
Help, I’ve Discovered a Mistake on My Application!
It’s always a good idea to review the information your insurance provider has on file once a year. Sometimes, a company may even call you to confirm your information hasn’t changed. Keep a copy of your policy in your files, and take the time to read it through and understand your coverage and limitations. If you do notice a mistake, call your representative to set the story straight.
My Insurance Company Didn’t Change My Information When I Called – Or, I’m Concerned My Insurance Company Knew There Was a Mistake and Didn’t Contact Me
In limited cases, the insurance company may be liable for the error. Always keep your policy documents and request additional copies if you update your information. If you keep a record of all your communications, you may be able to trace an error back to one of these exchanges. With the help of a knowledgeable insurance attorney, your coverage shouldn’t be compromised. In fact, you may be able to seek help from a bad faith insurance attorney and file a claim against your insurance provider.
Is Lying On My Application Really That Harmful?
Car insurance, for example, is a type of coverage most Americans are required to have to drive in public. If you purchase a policy on your child’s car and list him or her only as an additional driver to get premium savings, the insurance company will view it as an act of fraud. Similarly, failing to tell your insurer about the primary use of the vehicle may be considered fraudulent. Purposefully withholding or manipulating information can have harmful legal implications for you.
How Can I Make Sure My Application Is 100% Correct?
If you don’t know how to answer questions on your application or you aren’t quite sure what you’re required by law to provide, you have a couple of options. Most insurance providers are willing to sit down with potential clients to go over the information in person or over the phone. They can help you fill out the application so everything is correct.
Alternatively, you can ask an insurance attorney to review your application or help you fill it out. An attorney can help you understand your rights as a policyholder as well as what you’re required to provide.
Finding an Insurance Attorney
If you have questions about the discovery of erroneous information on your policy application or your insurance company isn’t providing fair service, schedule a free consultation at the Surrano Law Offices for more information. We can review your policy to determine what rights you may have as a policyholder.