What Happens If You Lie to the Insurance Company about an Accident? (2024)

What Happens If You Lie to the Insurance Company about an Accident? (1)

After a car accident in Georgia, one of your first calls will need to be to your insurance company. In fact, virtually every insurance policy includes a clause that requires you to report any accident you are involved in, even if you are not at fault. But when you do call your insurer, you may be tempted to lie to them about what happened, especially if you believe you are at least partially at fault for the wreck.

The insurance adjuster you speak to will likely ask a slew of questions, some of which are designed to trip you up and get you to admit you caused the wreck – giving them grounds to deny any claim. But what happens if you lie to the insurance company about a car accident?

No matter how minor the lie, being dishonest with your car insurance provider is never a good idea. In fact, it falls under insurance fraud.

At best, you will have to remember your lie the entire time you are dealing with your insurer. They will most likely record calls and other interactions with you to uncover any discrepancies in your claim. At worst, you could face criminal penalties leading to fines and even jail time.

Of course, even if you tell the truth, your insurer may still try to twist your words to get out of paying the compensation you deserve. That is why it is so important to speak with an experienced Georgia car accident lawyer about all of your legal options after a wreck, especially if you suffered major injuries and/or property damage.

How the Insurance Company May React if You Lie

Your Claim Will Be Denied

If the insurance company discovers that you lied about the car accident, your claim will almost certainly be denied. It does not matter if you only embellished certain details, such as claiming vehicle damage that did not occur in the wreck, or if you entirely lie about your role in the collision. The insurance company will most likely deny the entire claim outright.

For example, a T-bone accident often results in broken bones. You may suffer a broken arm, which your insurance may cover. But if you lie about other injuries, such as whiplash or back pain, the insurance company may not cover any injuries or other damages – including your legitimately broken arm.

Your Policy May Be Canceled

If you lie to your insurance company about the cause, injuries, and other details of your car wreck, you risk losing your policy completely. Insurance companies do not want to work with individuals who lie and try to take their money.

Alternatively, they may move you to a high-risk insurance category, which can make it harder for you to get coverage. This categorization is shared throughout the insurance industry, so switching providers will most likely not solve your problems.

Your Premiums Can Increase

If your policy is not canceled, your premiums will almost certainly increase. As we mentioned before, your insurer may label you as “high risk,” and high-risk drivers can be forced to pay up to 70 percent more for the same coverage.

Unfortunately, your premiums may also increase after an accident even if it was not your fault. However, the rate of increase is typically much lower. But because Georgia follows a contributory negligence doctrine, your rates may increase more than usual if you are found partially at fault for the wreck.

Legal Consequences of Lying to the Insurance Company

Under Georgia law O.C.G.A. § 33-1-9, lying to your insurance company about the details of your wreck can lead to felony charges. The law states that insurance fraud occurs when any person knowingly or willfully:

Makes or aids in the making of any false or fraudulent statement or representation of any material fact or thing:

  • In any written statement or certificate;
  • In the filing of a claim;
  • In the making of an application for a policy of insurance;
  • In the receiving of such an application for a policy of insurance; or
  • In the receiving of money for such application for a policy of insurance
  • for the purpose of procuring or attempting to procure the payment of any false or fraudulent claim or other benefit by an insurer. …

A … person convicted of a violation of this Code section shall be guilty of a felony and shall be punished by imprisonment for not less than two nor more than ten years, or by a fine of not more than $10,000.00, or both.

In short, making a false or exaggerated claim to your insurance company is a serious crime. The penalties for insurance fraud in Georgia can be severe. You may face jail time from 2-10 years and/or a fine up to $10,000. In addition, if the insurance company already paid you, you will have to pay that money back.

I Already Lied to the Insurance Company. Now What?

As you may imagine, honestly is the best policy when it comes to speaking with the insurance company. However, it is important to note that errors innocent mistakes are not the same thing as lying to your insurer. If this occurs, insurance companies will usually understand and let you make amendments to your claim. However, this is not always the case. That is why we recommend speaking with an attorney before you speak with your insurance company.

Intentionally lying to the insurance company, on the other hand, is a different matter. If they discover the deception, there is a good chance they will send the file to the police for further action. At this point, it would be advisable to consult a criminal defense lawyer about your legal options.

While the law lays down severe penalties for insurance fraud, many of these cases do not result in legal prosecution. However, that does not mean you will get away with lying to your insurance company. Even if no criminal charges are filed against you, your insurer is still well within their rights to drop your coverage, deny your claim, label you as a high-risk driver and take other nonlegal (i.e., not pertaining to the law, not the same as illegal) action against you.

Contact a Duluth Car Accident Attorney Today

If you are not sure what to say to the insurance company, you are not alone. Calling and reporting a wreck to the party that will only compensate you under the right circ*mstances can be nerve-wracking. As such, we recommend that you consult an experienced car accident attorney before you speak to your insurance company to make sure you do not say the wrong thing.

In addition, you often have a better chance of getting the full compensation you deserve if you work with an Atlanta car accident lawyer. This is because insurance companies will not hesitate to pressure victims into taking a low settlement, using language such as, “This is our best offer – take it or leave it.” Personal injury attorneys know these tactics and will not back down until they get the settlement or verdict you are owed.

If you have been injured in a wreck due to someone else’s actions or negligence, we are here to help. The attorneys at Scholle Law have the skills and experience to take on the insurance company on your behalf. Your initial consultation is always free, and there is no fee until we win. Call us at (866) 592-1296 or contact us online today to speak with a Duluth car accident lawyer.

What Happens If You Lie to the Insurance Company about an Accident? (2024)

FAQs

What Happens If You Lie to the Insurance Company about an Accident? ›

If you lie to your insurance company about the cause, injuries, and other details of your car wreck, you risk losing your policy completely. Insurance companies do not want to work with individuals who lie and try to take their money.

What happens if insurance finds you lying? ›

Insurance fraud includes making false, misleading, or incomplete statements to the insurance company. Lying to an insurance company could result in felony criminal charges, punishable by up to five years in state prison. Lying to an insurance company could also result in substantial fines.

How do insurance companies know if you're lying? ›

Verification Process. Insurance companies know that people lie on applications, so they will undertake a meticulous verification process before issuing coverage. This will likely include conducting a medical exam and reviewing your medical, prescription and motor vehicle records, among other documents.

What happens if you lie about what happened in a car accident? ›

If you lie about a car accident, your version of events will be scrutinized against available evidence. Discrepancies can lead to your claim being dismissed, legal penalties for fraud, and loss of credibility. Evidence to prove the truth may result in serious consequences, including denial of insurance claims.

Can insurance drop you for lying? ›

Insurers generally have a zero-tolerance policy when it comes to insurance fraud. They'll likely cancel the policy of anyone who lied when initially applying for the policy or who was caught filing a fraudulent claim.

Why do people lie about car accidents? ›

Fear of Legal Consequences: The fear of facing the consequences of the accident is a strong motivator for drivers to lie. In severe cases, the driver may lie to avoid legal repercussions such as fines, a driver's license suspension, or even jail time.

Can you go to jail for lying about not receiving a package? ›

The potential prison penalty for a federal mail fraud crime is very high. Each offense can result in a felony sentence of up to 20 years in federal prison. However, the penalty can be harsher if the crime involves specific victims or elements.

Do insurance companies track you? ›

By monitoring your speed, driving frequency and braking habits, your insurance company gathers information about your driving behavior and how much time you spend on the road. They can use this to better price your premiums according to their risk in insuring you. Do insurance trackers save you money?

What is insurance deception? ›

Last Updated 6/13/2023. Issue: Insurance fraud occurs when an insurance company, agent, adjuster or consumer commits a deliberate deception in order to obtain an illegitimate gain. It can occur during the process of buying, using, selling, or underwriting insurance.

Are insurance companies allowed to spy on you? ›

It's perfectly legal. They can set up right outside your home, or outside where you work place. But usually they try to do it in such a way that you will not notice them. That's the only way they can really “catch” you.

Why you should never admit fault at an accident? ›

It Can Jeopardize Your Compensation Claim

However, admitting fault can complicate your claim. In some jurisdictions, admitting fault could entirely prevent you from receiving any compensation due to laws that limit recovery based on the degree of fault.

Do people lie about car accidents? ›

To avoid legal or financial trouble, some drivers will simply lie about the factors surrounding a crash. In some accidents, the other driver will initially appear apologetic and take responsibility for the crash. Later, their story could change dramatically.

What if someone accuses you of hitting their car? ›

If you have been accused of causing an accident and fleeing the scene in California, you could face serious consequences such as jail time and fines. Hitting a vehicle and not sticking around to trade information with the other driver is a serious crime in California.

Why do insurance companies drop you after a claim? ›

Too many claims reads as high-risk behavior, and once an insurer views you as too high a risk to cover, it may decide to drop you as a customer. Having an excessive claims history could hurt your ability to find cheap car insurance from a new insurer.

Is it hard to get insurance after being dropped? ›

It can be difficult to find homeowners insurance on the standard market if you've been dropped, since many insurers view you as being at greater risk of filing a claim. However, there are specialty insurance companies willing to work with high-risk homeowners, including Foremost, Stillwater, and Travelers.

How many claims are too many? ›

Filing more than three claims in a three-year period can put you at risk of having your car insurance policy non-renewed or canceled.

What happens if you lie about being a smoker on health insurance? ›

What happens if I don't disclose to an insurance company that I use tobacco? If you report inaccurate or false information about your tobacco use on an application, an insurer is allowed to retroactively impose the tobacco surcharge to the beginning of the plan year.

What happens if you lie to your insurance on Reddit? ›

If you lied to them about something so simple as that you have had an insurance policy cancelled, they might decide they don't want to do business with you (you committed a form of fraud in doing so), and they are well within their right to just void your policy.

Top Articles
Latest Posts
Article information

Author: Jeremiah Abshire

Last Updated:

Views: 5994

Rating: 4.3 / 5 (54 voted)

Reviews: 85% of readers found this page helpful

Author information

Name: Jeremiah Abshire

Birthday: 1993-09-14

Address: Apt. 425 92748 Jannie Centers, Port Nikitaville, VT 82110

Phone: +8096210939894

Job: Lead Healthcare Manager

Hobby: Watching movies, Watching movies, Knapping, LARPing, Coffee roasting, Lacemaking, Gaming

Introduction: My name is Jeremiah Abshire, I am a outstanding, kind, clever, hilarious, curious, hilarious, outstanding person who loves writing and wants to share my knowledge and understanding with you.