Why Lying To Your Insurance Company Costs You Money $$$
What Happens If You Lie to Your Insurance Company After an Accident?
Just got out of a mediation with a client auto case. The issue with the case was a material misrepresentation of the policy because she didn’t name all of her household members. Now, when you do that, it may save you money on the front end, but it can hurt you on the back end, especially in the event that you’re in an accident and the insurance company does their investigation and they find out that there are household members in the property that live with you and you didn’t name them because you’re trying to save a few bucks.
Now, I’d always recommend you be completely honest and forthright with the insurance companies because when the time comes, when you have an accident, you have to get treatment and you need that insurance coverage at the time. The amount of money that the insurance company would potentially payout on your claim far exceeds whatever you’ll be saving on the front end when you decide not to be fully cooperative and fully forthright with your insurance carrier.