What are the consequence of lying to an auto insurance company?

Question

My boyfriend just had an accident on monday with one of his co-worker he exchange information with him, my bf car was insured under his moms name not under his so the guy gave my bf some time to think about what he wanted to do. so he told his mom about it and she decided to report it as a hit and run so they reported it on tuesday, my bf offered to pay for his damages and he agreed, but on wenesday the guy said he was just gonna report it that morning, till now we dont know anything and my bfs car is being fixed. what can happen to my bf if the insrce finds out?

By the way from how my boyfriend says the accident happend i think they were both 50% at fault. this happend in the parking lot my boyfriend was making a right turn when that guy was coming really fast on the left side so whie my boyfriend was turning it seemend like the guy came out of no where because of his speed, the guy told my boyfriend that he had seen him and though he was just joking and thought my bf was gonna stop.

Answer 1

Well, the insurance company is likely to decline the claim which makes it more difficult for you to get insurance elsewhere.

As others have said you would be opening yourselves to potential prosecution for insurance fraud and may be expected to pay back all monies given to you or paid by the insurer.

Answer 2

this may turn out to be a big deal. your bf mom reported as hit and run, but in reality your bf is at fault for the accident.  Unless there is a PR, you cannot prove speed. Now, some random person to the insurance company is going to call and report damages to his car caused by your bf. Someone needs to call the insurance company and fess up before a lawsuit is filed.

Answer 3

Isn't that insurance fraud? Claiming hit and run when it wasn't? I don't know. May be they won't find out.

Answer 4

Its called insurance fraud. Not only will he be forced to pay the entire cost of damages, he will not be able to get insurance as easily, and the insurance company can press charges against him.

Answer 5

Insurance Fraud will get you ten years in prison.

Answer 6

What your boyfriend did has a name:  Insurance Fraud.

It's a crime.

Usually  insurance companies require a police report for a Hit and Run--- that's another crime - filing a false police report.

When the claim gets reported by the friend.....the adjuster will believe his story over your BF about how the accident happened. Your boyfriend has already lied to them once.....why should they believe him about how the accident happened. And the friend is NOT going to tell the adjuster anything that hurts his case.

You'll just have to see what the insurance company decides to do with it.

Answer 7

Unless the bf was an excluded driver I think the insurance would have covered him anyways so they probably lied for no reason and now committed insurance fraud.  

I suppose what would happen is the other driver reports it to his insurance and then they pay him and then his insurance sends a letter to your boyfriend saying pay us this much.  At that time I suggest he pays them himself.  Or he could say this guy's insurance said I did this, I remember the accident but we agreed we'd pay it ourselves so I didn't report it.

Answer 8

jail time

Answer 9

I am sure your bf's mom will be caught for fraud.  As soon as the other guy reports this to his company, they will pay for his damages & subrogate (go after) your bf's mom's company for repayment of the damages.  They will then find out what really happened in the accident that his mom reported as hit & run.  They will deny both claims (for your bf's car & for the other guy's car).  Your bf & his mom will end up paying for both out of pocket.  The insurance company may or may not press charges.  It depends on the company & the size of the claim.  If it is Progressive, I am almost sure they will press charges (I have seen them void policies for undisclosed operators & not cover a claim, took it to court).

Then, they will CANCEL the policy & they will put the reason on the cancellation.  This will follow her forever every time she goes to buy any insurance policy & she will have a hard time getting insurance.

Her best bet is to come clean now before it goes any further & HOPE that they don't press charges.  She will probably still have to pay for both damages out of pocket.

If the other guy was going straight & your bf made a right in front of him, it doesn't matter if he was speeding, your bf is at fault, probably 100%.  Also, how did he know if he was speeding if he didn't see him coming?

Answer 10

Most insurance frauds are felonies. If the amount of money involved is more than $1000 the crime is a class A felony punishable by up to 15 years in prison. If the amount is more than $500 but less than $1000, the crime is a class B felony punishable by up to 7 years in prison. Any insurance fraud involving less than $500 can result in incarceration for 12 months

Answer 11

insurance fraud isn't a small matter if you are caught