What are the consequences of insurance fraud ?

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31st Jan 2022

There are times when people think it is acceptable to withhold facts and give incorrect information to their insurance company. This is often done to save money. Other times, consumers think they’ve paid high premium diversions in the past and haven’t made any claims, so the insurance company owes them something in return.

Withholding and providing false information, however, is a fraud and will not render good results. If you lie, you’ll face serious consequences when the truth comes out.

These consequences include:

1. Insurance policy cancellation
Policy cancellation puts you in high-risk category. Being in high-risk insurance, it automatically makes it harder and more expensive for you to get any insurances in the future.

2. Denial of your insurances and claims
When your insurance company learns that you’ve been dishonest with them, the insurance provider is within its rights to deny your insurance in the future and may deny your claim because you weren’t being truthful from the beginning.

3. Fines and penalties
You may have to pay your insurance company or receive a fine and you could be held financially responsible. An insurance company can sue you to recover costs and damages under the law. A false insurance claim can lead to jail, substantial fines and a permanent criminal record. Lying on its own is a form of insurance fraud.

If you have been accused or arrested for insurance fraud in Florida then you should immediately call a criminal defense attorney who understands the law and will protect your rights.