Is this Insurance Fraud? And what are the penalties?

Question

A few days ago, a deer ran into the car I was driving. (Yes, the deer literally ran into the car). I called the insurance company, gave them details on the damages, recieved a claim number, and was told they'd come look at it.

The car is in my Dad's name, as well as the insurance. He had told me the car was full coverage, but apparently it's not. Since I had called the insurance, and am not under the policy, the damage to the car is not going to be covered. He apparently told the insurance company that I did not live at home, nor drove the car.

However, I do live at home, and the car is for my mom & I to drive to work & leisurly purposes. He pays the insurance, but we pay the car payments.

I have been driving the car to Atl, Ga and back everymorning, a good maybe 30-50mile round trip. I would not have been doing this if I didn't believe I was covered.

Is what he did insurance fraud? And if so what are the penalties?

Answer 1

I don't know about fraud, but its definitely lying to the insurance company. Most insurance companies will drop your policy if they find out that someone else has been driving the car often or he lied on the application (i.e. saying you didn't live at home when you did) If they don't drop you, they'll probably send you a letter saying that everyone but your dad is void from the insurance and cannot drive it. However in you case, it seems insurance would just drop your dads insurance cause he did lie on the application and you have been driving the car when you are not allowed to do so (unless your dads insurance covers any licensed driver - which it looks like it doesn't) You really don't want insurance dropping you though, if you've ever seen an insurance application, one of the first questions they ever ask is "has your insurance company ever terminated your insurance policy?" or something along those lines. This is pretty important to insurance companies, if you lied once and you get kicked off insurance, it will be harder to get a good insurance company with a good rate later.

Answer 2

This is material misrepresentation.

Your father lied on his application for auto insurance, and misrepresented himself and the situation.

The conditions of the policy should state that if the insurance company becomes aware of any misrepresentations, they can cancel your policy, or surcharge you (meaning you will have to pay the difference of what it WOULD have cost for you to drive the car.)

Answer 3

It's material misrepresentation.   (Which essentially means he lied on his application).  (With fraud, in short, you have to use the lie to benefit in some way)

Since you live at home and use the car on a regular basis you should technically be listed on the auto policy.........which means that your dad would have to pay premium for you.

By him saying that you DON'T live at home - he doesn't have to pay premium.  (Misrepresentation)

If you DIDN'T live at home and were not a regular/frequent operator of the vehicle AND had the owner's permission to drive the vehicle when you were in an accident - then you WOULD be covered.  (all misc exceptions aside).

Now - a DEER hitting the vehicle would not be a collision claim (wherein permission and ownership make a difference).

A deer strike would be a comprehensive claim and it doesn't matter who is driving, etc.

Your father would have to have comprehensive coverage though....and it sounds like that might not be the case so.

Penalties?  Depends on the coverage he does and doesn't have.  The insurance company could charge back premium owed, cancel him....  like I said - it depends.

Hope that helps.

~jifr!

Answer 4

What he did is not fraud. Fraud is when you end up taking money. What he did was not provide insurance for the drivers. It could have been much worse. God forbid you ran into someone or hurt someone. The insurance company would then not have covered them and you'd be on the hook for the damages. What you have now is a dented car and you are responsible to fix it (if it is a lease) or live with it.

This is also not a comprehensive claim. Unless the deer ran into your parked car the vehicle is then in motion and it would be a collision. Even if the deer runs into the back or side of the car it is a collision and you would be the driver.

Insurance fraud is filling false claims. Falsifying claim information and benefiting by receiving money or services from the insurance company. You could also commit fraud by claiming personal items in the vehicle were stolen when they were not. And there are other more complicated schemes. But what your dad did was to just leave you high and dry.