You may be wondering “What happens if you lie to an insurance company about an accident?” When you’ve been involved in a car accident, dealing with an insurance company is stressful even if you weren’t the one at fault. Your insurance company may be asking a plethora of questions about the damage to the vehicle, any injuries sustained, and how the wreck has been impacting your life. You may have the urge to exaggerate a bit or say old damage is new so that it’ll be covered in the repair, but know that you should never lie to an insurance company about an accident.
Sometimes drivers lie to exaggerate damages for a bigger payday. Other times, at-fault drivers lie to downplay their fault or to shift the blame to the victim. And sometimes people accidentally lie because they are anxious to be speaking to an adjustor or an attorney and make a mistake.
No matter why you might lie to an insurance company, there can be serious repercussions.
Consequences of Lying to the Insurance Company
Your Policy May Be Cancelled
If you lie to your insurance company about the cause of a car accident or the injuries that resulted from it, you risk losing your policy completely. Insurance companies don’t want to work with individuals who lie and try to take their money. Alternatively, they may move you to a high-risk insurance category, which can make it harder for you to get coverage. Other insurance agencies may also balk at having to work with you.
Your Claim Will Be Denied
If you lie to an insurance company about a car accident claim, you will automatically be denied that claim. Whether part of the claim was legitimate or not, the company is within its rights to deny you compensation.
For example, if you lie about having a broken arm as well as a broken leg, but you only have a broken leg, the insurance company will not cover the expenses for your broken leg. Similarly, if you claim that you were not at fault for a car accident when you actually were, they may deny your claim to repair your vehicle or cover any medical expenses.
You Lose Your Rights to Damages
Lying to the insurance company is a quick way to lose a personal injury lawsuit.
The insurance company will argue that if you lied about one aspect, how can they trust any of the other statements you have given? This argument works well in the courts, resulting in smaller damage payouts or denial of damages altogether.
To preserve your right to damages, you need to be honest with the insurance company about the events that occurred, the injuries you sustained, and how the accident has affected your life.
To help you present a truthful case, call a Duluth car accident attorney today. Scholle Law is here to help you create an accurate timeline of the accident and will speak with the insurance company on your behalf.
Call us today for a free consultation at (678) 831-9645.
Your Premiums Can Increase
Lying about a car accident to your insurance company can increase your premiums. Whether you deny the accident even happened or try to convince them that you were not at fault when you were, your insurance provider may move you to a higher-risk category when they find out the truth. These high-risk categories have to pay higher monthly premiums.
Many drivers will try to convince victims to settle without contacting insurance companies so they don’t have to report it. However, it is in your best interest to file a claim through the insurance companies to ensure you get paid fairly for damages.
You May Be Denied Future Car Insurance
Car insurance companies include stipulations in their contracts to punish lying. Whether you lie about your daily driving activities or an accident, they can deny you a car insurance plan in the future. Would you want to work with someone who lies to you? No, and neither do insurance companies.
You May Face Fines and Penalties
In some states, you may be fined or have to pay your insurance company if your claim is found to be fraudulent. You will be held financially responsible for submitting a false claim, even if the insurance company ended up approving it.
You Can Face Criminal Charges
Filing a false insurance claim can lead to substantial fines, jail time and/or a permanent criminal record, which can make it difficult to find work or get insurance in the future. Insurance fraud can cost people upwards of $15,000 and up to 5 years in jail for a misdemeanor. For a felony, that increased to $150,00 and at least 10 years in prison.
Contact a Duluth Car Accident Attorney
Always consult an experienced car accident attorney before you speak to your insurance company. They can advise you on the dangers of providing a false claim or lying to your insurance company about an accident or incident.
In addition, an experienced car accident attorney can help you collect more damages without resorting to lying. The honest way to get the compensation you deserve involves forming a strong case, not accepting low settlement offers, and providing a clear and true timeline of events. Ultimately, your lawyer could earn you far more than you’d get from a false insurance claim.
If you have been injured in a car accident, contact Scholle Law. We have years of experience helping car accident victims with complicated circumstances. Don’t worry about what happens if you lie to an insurance company about an accident. If you were injured due to someone else’s negligence, we’d love to speak with you.