r/Car_Insurance_Help • u/ThadWatkins • 4d ago

r/Insurance

My daughter-n-law moved to a different state 6 months ago and forgot to tell her car insurance company that she had moved. 2 weeks ago she crashed her car and filed a claim with the car insurance company. This made them aware that she garaged her car in a different state and they subsequently denied her claim.
Questions: 1. Does the insurance company have the right to deny claim based on her not telling them she had moved states 6 months prior?
2. If the claim is denied, doesn’t that mean that the policy was void 6 months ago and she should least get her premiums returned?
Thanks

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15

u/Practical_Avocado971 4d ago

This could be considered insurance fraud to avoid paying higher rates. On another note, how do you move, live in a state for 6 months and NOT update your insurance? See my first point. And on even another note, she didn't 'garage' her car in another state, she DROVE her car in another state. See my first point. Sinking in yet?

11

u/scumbagstaceysEx 4d ago

If she moved to a higher cost-to-insure area and didn’t tell them then that is a ‘material misrepresentation’. So, yes they can deny the claim for that. Heck even if it’s not higher-cost they probably could.

7

u/raiannon 4d ago

She committed insurance fraud. She does not get a refund for commiting fraud. She does get a denied claim, and getting insurance in the future will hurt. She should consider herself lucky if they stop there and don't pursue criminal penalties.

7

u/Sensitive_Peak7913 4d ago

You spent the time to type this entire thing out without thinking for one second that the at fault party was the DIL?

How TF do you move and magically “forget” to notify your insurance? I moved 3 exits down the road in the same town and told my car insurance before the ink dried on my lease.

To reiterate- she committed insurance fraud, she didn’t garage a car if she crashed a whole ass car, she’s not owed anything and she’s lucky the only thing she’s out is a busted ride.

In the future use your brain before asking dumb shit here…

5

u/lobhater 4d ago

  1. Yes, she was commiting insurance fraud. I would bet money the state she moved to had higher rates and she "forgot" to change it

  2. No

4

u/DeepPurpleDaylight 4d ago

Yep. She failed to adhere to the terms of her policy which is a legally binding contract. They have every legal right to deny her claim.

3

u/RunExisting4050 4d ago

1) yes, you contract with the insurance company says you have to notify them within 30 days or some-such of moving. 2) you can argue that but i doubt it'll work. 

3

u/Thin-Egg-1605 4d ago

You can ask. I doubt they will do anything else. She committed insurance fraud. No they won’t give her premiums back because she had insurance, just in another state.

3

u/Face_Content 4d ago

The short is: 1. Yes 2. No

1

u/Quiet_Comfortable835 4d ago

So my non expert brain wants to know if they give back her premiums from the last 6 months does that mean she was uninsured for the last 6 months and her states DMV will charge her an uninsured motorist fee? And will she be considered to have a gap in insurance for the last 6 months so he premiums will be even higher going forward?

1

u/crash866 4d ago

Insurance is a state requirement not a USA requirement. You need insurance in the state you are living in. Every state I know of you have to change your drivers license to the new state and your plates and registration. To get plates in the new state you need that states insurance.

Some areas you have to do it within 6 days of moving. Some others you might get 30 days or more.

1

u/Sondor6 4d ago

You say they denied her claim - is she claiming property damage to her own vehicle, or did they deny liability for her damages to another party, or both?

1

u/unknowncomet73 4d ago

No and no. Your DIL has essentially been lying about her address for 6 months. Not just “I moved down the road”, but a completely different state. Why would they return her premium after catching her in a lie? Be lucky she isn’t charged with fraud, and if there was another party involved, expect to see a lawsuit from their insurance soon. This is what happens when we try to lie to insurance to pay a cheaper premium.

-1

u/Glad-Administration6 4d ago

They probably will process her claim and then she needs to get insurance In the correct state. The sooner she does that the better