Consequences of False Statements to Insurers

Honesty is always the best policy, and yes, that includes your car insurer. If you’ve been in a car accident and suspect you may be to blame, it’s still worth it to fess up and tell the truth. If you don’t, you could face some serious consequences with your insurance company or, in the worst case, with law enforcement.

The consequences of false statements to insurers could lead to fraud investigations, charges or fines, as well as a possible immediate insurance claim denial or increased premium. Professional Phoenix car accident attorneys, like Gage Mathers Law Group, can explain your legal obligations, keep everyone honest and accountable, and document every step of the way. 

The Legal Risks of Lying

If a driver is caught lying on an insurance claim, they could face a variety of legal and financial risks. In some states, like Arizona or Nevada, it is likely to be treated as insurance fraud.

There are two types of insurance fraud in Arizona: hard fraud or soft fraud.

• Hard fraud: This is used when someone purposely fakes an accident or injury to collect money illegally from insurance companies.
• Soft fraud: These are seemingly-innocent lies people may tell their insurance company after an incident, like exaggerating the severity of an injury. While some may feel it’s harmless, it is still considered a crime.

For many states, insurance fraud is a serious legal offense that can prompt investigations, criminal charges, fines or even jail time for those who aren’t honest. This is why proof of your claim is so important. Any and all documentation you can collect can help you prove your case!

Insurance Companies and False Statements

If a driver attempts to deceive their insurance company, they risk ruining their relationship with their insurance company, facing consequences including:

• Immediate claim denial
• Rejected claims due to conflicting witness statements
• Claim voided after too many discrepancies 
• Delayed processing
• Increased premiums
• Increased security from insurers

To avoid any of these negative outcomes, it pays to be as upfront as possible from the start.

How Insurance Companies Detect a Lie

Insurance companies have a handful of tricks and tactics to detect if someone isn’t being honest. These are just a few ways they match catch someone in a lie:

• Advanced analytics and fraud-detection software
• Cross-checking statements with police reports and witness statements
• Reviewing nearby camera footage to check a timeline or additional details
• Analyzing past claims for any patterns of dishonesty
• Flagging any narrative inconsistencies

Any of these red flags can trigger a more in-depth investigation and lead to any of the consequences we’ve listed.

Why Hiring the Right Help Matters

When you have the right legal help at your side, you won’t feel the need to skew your story if you’re at fault. But if you’re dealing with a dishonest driver on the other end of things, experts like our team at Gage Mathers Law Group are the best support. We can answer any questions you may have, like ‘how long does it take for insurance to investigate a car accident?’  or ‘am I at fault?’

Gage Mathers can step in at the start and support every step of the way, collecting evidence, handling the back-and-forth between insurance companies, and fight for your rights throughout the entire process. At the end of the day, the goal is to make sure you get the justice (and the compensation) you deserve!

About the Author

Joseph D'Aguanno

Guided by the belief that being a highly skilled specialist in a narrow field is better than being ordinary in everything, Joseph “JD” D’Aguanno leads Arizona’s best personal injury law firm in Phoenix, AZ. Having extensive cross-training in pre-litigation negotiations and trial lawyer skills, with decades of experience, JD strives to provide clients with the most valuable legal services a personal injury lawyer can provide. Under his direction, Gage Mathers Law Group is an award-winning personal injury law firm providing aggressive representation to victims of a car accident, medical malpractice, dog bite, motorcycle accident, and other injurious events. Gage Mathers is trusted by thousands of lawyers and clients throughout the country because of their reputation for getting clients the maximum compensation they deserve.

Years of experience: Over 24 years
Bar number: 020421
Location: Phoenix, AZ
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