Every insurance policy is a contract between you and the insurance company. When you apply for coverage you tell the insurance company about you, your family and any other residents of your household.
Your premium is based upon the information you provide and when you sign the application, you are attesting that the information you provided is true and correct.
Unfortunately, many people believe that they do not have to be completely honest when applying for insurance.
People fail to disclose other licensed drivers in the household (my boyfriend has a bad driving record so I will put his car on my insurance) or (my daughter got her license but I never told the insurance company that she was driving my car). At every renewal of your policy (monthly, semi-annually or annually) you have an ongoing duty to disclose to your insurance company any changes to licensed drivers in your household or any additional vehicles in your household.
Most people do not realize that not disclosing factors that would increase your premium will void your insurance coverage.
For example, the person who adds the boyfriend with the bad driving record’s car to her policy will be paying for coverage THAT WILL NEVER PAY OUT FOR A LOSS OCCURRING UNDER THAT POLICY WHILE THE BOYFRIEND IS DRIVING. The insurance company will void the coverage back to when the policy was first written because he was not listed on the policy as a licensed driver living in the household. The boyfriend will still owe the remaining balance on the car loan to the lien holder.
This can also happen when children move between their parents’0 households. A 20 year-old son was living with dad and driving a car dad owns. Once the son moves in with mom and begins driving mom’s car, if mom’s insurance company is not notified that he lives in her house and drives her car, when an uninsured, reckless driver crashing into the son and totals mom’s car, mom will receive NOTHING for her car because the son was not listed on the policy.
Bottom line is this: no one wants to pay more for their car insurance, but if you are not honest with your insurance company, they will not cover claims you make because your insurance coverage voided when you failed to notify them about licensed drivers in your household or vehicles in your household.
If you ever have a question about insurance coverage, reach out toJacobson, Schrinsky & Houck in Milwaukee TODAY at (414) 223-4444. We want to make sure you get the coverages you are paying for.
Personal Injury Attorneys – Jacobson, Schrinsky & Houck – Experience – Compassion – Results
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