Car Insurance coverage denials on the rise due to False Particulars

Car insurance is required for all vehicles on the road in Ontario. It provides protection in the event of an accident, theft or damage to the vehicle. However, it is important for policyholders to provide accurate information to their insurer when purchasing car insurance policies. False particulars, such as providing an address located in a jurisdiction that is not actually where the policyholder lives is becoming common place and so is the insurers refusal to pay, most do this for the sole reason of obtaining cheaper premiums, although you may actually obtain cheaper premiums in the meantime, the real problem begins if your involved in car accident. Suffice to say, if you mislead the insurer you may be faceing some serious issues.

Generally, the cost of car insurance premiums is determined based on different factors, including the age of the driver, their driving record, the type of vehicle, and the location of the policyholder. In some areas, the cost of premiums may be higher due to the increased risk of accidents, theft or damage to the vehicle. 

An example, is a case where the policyholder provided a different address than their actual residence when purchasing car insurance. The policyholder lived in a higher-risk area, but they provided an address in a lower-risk area to obtain cheaper premiums. When an accident occurred, the insurance company discovered the policyholder's actual address and refused to pay out on the claim. The policyholder sued the insurer, arguing that the policy was still valid because the car was primarily used in the lower-risk area. However, the court ruled in favor of the insurer, stating that the policyholder had provided false information when applying for the policy.

In another case, a policyholder provided their parent's address instead of their own when purchasing car insurance. The policyholder was attending university in another city and used their parent's address to obtain cheaper premiums. When an accident occurred, the insurance company discovered that the policyholder did not live at the address provided and refused to pay out on the claim. The policyholder sued the insurer, but the court ruled in favor of the insurer, stating that the policyholder had provided false information when applying for the policy.

A third case involved a policyholder who moved to a different address but failed to update their insurance policy. The policyholder provided their previous address to obtain cheaper premiums but had moved to a higher-risk area. When an accident occurred, the insurance company discovered that the policyholder did not live at the address provided and refused to pay out on the claim. The policyholder sued the insurer, but the court ruled in favor of the insurer, stating that the policyholder had provided false information when applying for the policy.

While some think that this is just some minor detail, it can surely have significant consequences if an accident occurs. Insurance companies rely on accurate information to assess risk and determine premiums. If policyholders provide false information about their address, it can compromise the insurer's ability to assess risk accurately. Insurance companies may deny coverage or even cancel the policy if they discover that the policyholder provided an incorrect address.

The examples above illustrate the importance of providing accurate information when purchasing a car insurance policy.

Sometimes policyholders might also provide false information about their vehicle. They might under-report the car's value or provide false information about the make or model. If the car is stolen or damaged, and the insurance company discovers the policyholder provided false information, the insurer may refuse to pay out on the claim or only pay a partial amount, leaving the policyholder with significant financial losses.

Another example of false particulars is failing to disclose pre-existing conditions when applying for car insurance. Policyholders may fail to disclose medical conditions, such as a history of heart disease, diabetes, or other health problems, to obtain cheaper premiums. However, if they get into an accident related to their pre-existing condition, the insurance company may deny coverage, arguing that the policyholder misrepresented their risk level.

Its safe to say that insurance companies take false particulars very seriously, and they will attempt to hold the false particulars against you, stopping or slowing any claim from being paid out. The Insurance Act states that insurers have the right to deny a claim if the policyholder provided false information when purchasing the policy. In most cases, the insurance companies will launch investigations into policyholders suspected of providing false information.

If you have been injured in a Car Accident or sustained some kind of injury, and not sure what to do then visit https://www.nglegaloffice.com/personal-injury.html, for more information, or visit https://www.nglegaloffice.com/index.html or call NG Legal Services Professional Corporation at 647-317-1908 today, so that NG can help you navigate through the process and connect you with an experienced paralegal or lawyer that specializes in that type of injury. 

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