How Misrepresentation Can Void Your Auto Insurance
Reviewed by Michael P. Maddux, Esq. | Board Certified Criminal Trial Lawyer | Florida Super Lawyer for 16 Consecutive Years
Did you know you can have the insurance premiums you’ve been paying to your carrier refunded with one simple trick? It’s true, and we’ve seen it more often than you might think. Insurers will refund your premiums when they determine that you have made a material misrepresentation when applying for coverage under your auto policy.
That means that they will not be providing any payments for the accident you were in while under the policy for which you were faithfully paying premiums. There are two major material misrepresentations that can result in your insurance company refunding your premiums and denying coverage for your claim.
The first and most common is performing any sort of rideshare service in the insured vehicle. Uber, DoorDash, Lyft, etc. they all count and if you don’t inform your carrier that you use your insured vehicle to carry out services for those companies they will consider it a material misrepresentation and deny coverage for your claim.
The second common way people lose coverage is by failing to disclose individuals of driving age (over the age of 15) living at the same address. When you apply for car insurance, the insurance carrier needs to know who else will have access to your vehicle. This means ALL household members of driving age must be either listed or formally excluded; you cannot simply leave them off the application. Whether it is your wife’s uncle, a roommate or your brother crashing on your couch, anybody of driving age who is living at your address must be disclosed to your insurance company to prevent the risk of coverage being denied when you need it most.
Insurance companies have the right to conduct Examinations Under Oath before determining whether coverage applies to your claim. These are generally over an hour of an adjuster asking you questions the accident you were in, what treatment you received and background questions that will absolutely cover who lives at your address and whether or not you used your insured vehicle for a ridesharing service. These are sworn statements and can be used later in a lawsuit to hold you to the answers you provide or impeach you should your answers change. If you have neglected to inform them of these circumstances you will be left with the choice of telling the truth and losing coverage or lying and perjuring yourself.
Don’t put yourself in this position. Disclose any rideshare work or residents over the age of 15. Even in the middle of a policy period!