by katcao20 » Tue Jul 19, 2011 01:01 am
If my fiance was in a car accident, about 1 year ago and there was no ticket or police involved since it was his own car that flipped (he lost control), when getting new car insurance does he have to put that down?? He did claim it through his dad's insurance, the accident that is
Posted: Tue Jul 19, 2011 02:41 am Post Subject:
If they ask, yes. If he does not and they find out (sometimes right after an accident happens) they could rescind his policy (cancel it as never in-force) for material misrepresentation. He would then be left holding the bag for the accident.
Posted: Tue Jul 19, 2011 11:08 am Post Subject:
Questions in an auto insurance application ask whether or not any listed driver has been involved in a traffic collision or received any traffic citations in the (three or five year) period prior to application. They also ask if a driver has been convicted of DUI or reckless driving in the last 10 years. Failure to answer appropriately, as tcope has said, is a MATERIAL MISREPRESENTATION and sufficient grounds to void the policy to the moment BEFORE it ever existed.
In states, like California, where "traffic school" exists, a citation may be dismissed by the court after successful completion of the class. Such citations do not have to be disclosed because the record of it has not been sent to the DMV. But you only get one such dismissal every 18 months in California, so two or three citations in a 1-2 year period means at least one or more will appear on a DMV report.
Posted: Wed Jul 20, 2011 02:58 pm Post Subject:
If the new insurance company asks him to the list all the accidents he has had in the past he needs to answer the question honestly. Once the policy is written it sometimes goes to underwriting for review. If they find out about the accident at this point they can cancel the policy. When they cancel or rescind the policy it will be from the effective date of the policy, this in turn makes it seem like it was never in force. This will then cause a lapse in insurance and could increase the premium with the next carrier.
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