Michigan car insurance carriers are attempting to deny claims and refusing to pay
Michigan no-fault benefits by alleging fraud or a material misrepresentation in the purchase of insurance policies. What should you do? Material misrepresentation is the act of intentionally hiding or fabricating a material fact which if known to the insurance company could have terminated or alter the basis of issuing an auto insurance policy.
What To Do:
Be sure to tell your insurance company everything when purchasing an insurance policy. Do not leave anything or anybody out and tell the truth.
You or a family member gets into a car accident on a road or highway in Michigan. You call your car insurance company to make a claim. Instead of being helpful, they ask you a lot of questions about your cars, who lives with you and then start mentioning things like fraud or material misrepresentation because you failed to tell them something about one of the vehicles or who you lived with when you purchased the policy.
Michigan insurance carriers are getting aggressive as ever at denying claims and refusing to pay Michigan no-fault benefits by alleging fraud or a material misrepresentation in the purchase of the policy even when there was truly no fraud or misrepresentation.
My law firm defends allegations of alleged fraud in many lawsuits filed against insurance companies even when there is no fraud. The insurance company attempts to void the policy as if the insurance never existed and deny claims of seriously injured people.
Unfortunately, a lot of the times the allegation works in getting claims denied and dismissed. Michigan’s courts have sided with insurance carriers in a number of recent decisions, upholding fraud provisions contained within an insurance policy and allowing insurance companies like Progressive, LA Insurance, State Farm and Allstate to get out of paying otherwise valid claims.
The fraud alleged by car insurance carriers must include allegations of some type of material misrepresentation when the insurance application was completed and the insurance policy was purchased.
The reasons the insurance companies give to deny claims because of fraud in the application of an insurance policy are many. They can include:
- Failing to list all family members in the household on the insurance application; Failing to list all drivers in the household;
- Failing to tell the insurance company that the vehicle would be used as part of a business (like driving for Uber, Lyft and Door Dash);
- Failing to give the correct address of where all the vehicles listed in the insurance application will stay or are garaged.
How To Complete Auto Insurance Applications
It is vital that you tell your insurance company everything when purchasing a policy. Do not leave anything or anybody out and tell the truth. Make sure you include all individuals living in the household and include all listed drivers. If one of your vehicles will be staying at another home overnight, tell them this.
All of this information must be in the insurance application. If you are buying insurance online or over the telephone, make sure you provide this information, even if you are not asked.
When you have completed the application, ask the customer representative for the insurance company to email you or text you a copy of the application to make sure it is correct. If something is not right, tell-them-jmmedjatelL
In addition, if you move, make sure you tell the insurance company this as well. I cannot tell you the number of otherwise valid claims that get denied in Michigan because a person failed to tell their car insurance carrier they moved and the car was now garaged at a new address.
If you do not do these things, the car insurance company may deny your claim and will not pay to fix your car or pay any no-fault benefits, such as your lost wages and medical expenses.
William G. Boyer, Jr. of Boyer, St. Pierre & Aull, PLLC has been representing Michigan residents against insurance companies for over 25 years and has recovered millions of dollars for his clients. If you need a lawyer, please call (586) 731-7400. There is no fee unless we win.