An insurance policy is a contract between you and your insurance company. Completion of the insurance application is the first step in the process. The insurance company uses the information you provide to determine whether they will insure you, and how much they will charge you in premium. Auto insurance policies in Florida are six months in duration, and typically will renew unless you receive a notice of cancellation from the insurance company. YOU ARE OBLIGATED to update significant information as it changes.
For example, the typical auto insurance application ask questions such as, how man person(s) over the age of 14 reside in your residence, regardless of whether the person is eligible to drive a car. There is an ongoing responsibility on your part to inform your insurance company when a person who lives with you obtains a license, whether they have a restricted or regular license. It doesn’t matter whether the person will drive your car(s) or not. Your insurance company will base your premium not on who actually drives your car(s), but based on the number of persons who have access to your car. You will also be asked questions about prior accidents, tickets and license suspensions. Once again, this information is used to determine whether the insurance company will insure you, and the amount of the premium. Do not think that the insurance company does not have access to this information if you fail to provide it. So when does this information become a problem for you.
For example, your 15-year-old son or daughter obtains their restricted driver’s license. Your newly licensed child has an accident. You report the accident to your insurance company. The adjuster asks you who was driving your car. You tell them it was your child. You then get a call from the insurance company, telling you that they will not provide coverage for the accident. In fact you are told, they are cancelling your policy for material misrepresentation. You ask why, and you are told you did not tell the insurance company you had a child over the age of 14 in your residence.
Failing to provide accurate information in completing the policy application can be used by the insurance company to deny you coverage!
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