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What happens if you lie to the insurance company about an accident? Discover the consequences with attorneys at Conoscienti and Ledbetter. Contact us today.
Author: J. Blake Ledbetter, Partner, Conoscienti & Ledbetter
Mr. Ledbetter specializes in civil litigation in metropolitan Atlanta, Georgia, and possesses vast experience in wrongful death lawsuits. Mr. Ledbetter was recognized as a SuperLawyers Rising Star in 2018 and 2019 in the area of Civil Litigation. Published on November 09, 2023.
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Why You Should Not Lie to Your Insurance Company
Often, you hear people say, “It’s just a little lie; it does not mean anything.” However, no matter how little your lie is, it is always a bad idea to lie to your auto insurance company. After an accident, most insurance companies require you to report the incident to them as soon as possible.
When you contact them, you may be tempted to lie, especially if you were partially or completely at fault. However, these calls are usually recorded, and being dishonest about the true events of the accident is considered insurance fraud. You could face criminal penalties, including a jail sentence and huge fines.
Additionally, your insurer may take further actions against you, such as canceling your insurance policy. Therefore, consulting a knowledgeable car accident attorney after an accident is vital. They can advise you on the legal steps to take and when you can claim an injury after a car accident or property damages.
Common Actions Insurance Companies Take After a Lie
After your call with your insurance company, the insurance adjuster will investigate your claim. If they find out you lied, they may take any of the actions discussed below.
Deny Your Insurance Claim
Lying to your car insurance company about the events of a car accident may result in the denial of your car accident insurance claim. This could include lies about who was driving your vehicle, your speed, or the severity of your injuries.
It does not matter if you were only exaggerating; they will likely deny your claim. For instance, most rear-end collisions result in bone fractures. You may suffer broken wrists, which the insurance company may cover.
However, if you lie that you suffered other injuries, your auto insurer may refuse to cover any of your injuries, including your actual broken wrists.
Cancel Your Insurance Policy
Your auto insurer may cancel your policy after they discover you are lying. Cancelling your policy for non-disclosure will place you in the high-risk insurance category. This makes it more difficult and expensive to secure another insurance coverage.
Issue High Insurance Premiums
Insurance companies are for-profit businesses. They do not like working with people who lie and try to take their money. If they discover that an at-fault driver lied about not being responsible for an accident, the insurer will label them as high-risk drivers. As a high-risk driver, you will be required to pay more for the same insurance policy.
Georgia abides by the doctrine of contributory negligence, and your rates may increase together with your level of fault in the car crash.
Nevertheless, the insurance premium of a high-risk driver may increase even if they were not at fault but only told a minor lie about the extent of damages. To understand more about how these factors might affect the value of your car in the event of an insurance claim, you can read further details on our guide to the salvage value of a car.
Speak with trusted Car Accident Attorney today, for free.
Legal Consequences of Telling Lies to Insurance Companies After Car Accidents
Georgia law (O.C.G.A S. 33-1-9) makes it a serious crime to lie to an insurance company about the details of a car accident. You are guilty of insurance fraud if you make false statements or representations about a material fact or thing:
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In a written statement or certificate
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In filing a claim
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In making an application for an insurance policy
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In receiving an application for an insurance policy
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In receiving money for an insurance policy
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To procure or attempt to procure payment of a false claim or benefit by an insurer
After speaking to your insurer, they may have it on record that you lied. They may compare your story with the police report from the accident. They may also contact the other driver to get more information about the accident.
Once their investigation is complete, they can use the gathered evidence to file a lawsuit against you for insurance fraud.
Insurance fraud is a felony in Georgia, and it carries a punishment of imprisonment between two and ten years. It may also include a fine not exceeding $10,000.
Additionally, if the insurance company already paid you, you may be required to repay the money. Getting a criminal record because you lied to your insurance company can be devastating. You may lose your job, housing opportunities, and even your opportunity for a professional license.
How to Avoid Making a False Statement After a Car Accident
Once a car accident occurs, it is important to contact your insurance provider. However, you should be cautious when narrating your story to your auto insurer. It is in your best interest to take some time to clear your head and put your story in order.
You must speak in a clear and concise manner. Where possible, avoid mentioning specific details and provide general information about the incident.
Contacting our car accident attorneys before speaking to your insurer can help prevent you from giving contradictory information that could affect your claim.
What Happens If You Already Lied to the Insurance Company
When speaking to your auto insurer, honesty is the best policy. However, it is not unusual for people to make innocent mistakes when filing car crash claims.
Car accidents are stressful experiences, and it is possible to unintentionally make incorrect statements concerning the incident. If that happens, your insurer may allow you to adjust your claim.
Unfortunately, that is not always the case. That is why consulting a skilled attorney like those on our team is crucial.
Intentionally lying about the accident is a different matter. If the insurance company discovers the deception, they may send your file to the police for further action. Even if no criminal charges are filed against you, your insurer may take other actions against you.
Don’t delay. Schedule a risk-free consultation today.
Get Assistance From Our Car Accident Attorney in Georgia
When an at-fault driver lies, it can have devastating consequences. Even if you are not at fault, adding embellishments to your story can potentially affect your insurance claim.
If you are uncertain about what to say to your insurer, you are not alone. Contacting an insurance company that will do anything to reduce the severity of your claim can be unnerving.
Most insurers will use your words out of context or against you to avoid paying for your loss. Therefore, it is essential to contact a car accident attorney about your legal options.
At Conoscienti & Ledbetter, we understand the tricks insurance companies play. We can guide you through the claims process and fight to get the verdict or settlement you deserve.
Reach out to one of our attorneys today. We can also help you calculate the value of your car after an accident.
Decatur Office
(404) 373-5800
315 W Ponce de Leon Ave. Suite 400 Decatur, GA 30030
