Take the case of Roger and his 18-year-old son George. George just got his license and Roger decides to reward him by buying George his first car. After purchasing a slightly used but dependable car, Roger and George visit with Roger’s insurance agent to see why type of coverage George can get. The insurance agent informs him that since his son is a new driver and even with a used car, the premiums for are going to triple what Roger pays, a price that George with his part-time job can’t afford.
Hoping to find a lower rate for George, Roger does some research online and learns that if he puts his name on George’s car as the primary owner, the premiums will be much more reasonable. Wanting his son to have the freedom of driving his own car, Roger commits insurance fraud and says he’s the primary owner.
However, this decision will come back to haunt him after George gets into a minor auto accident and has to file a claim with the insurance company. Since Roger is the owner of the vehicle, the insurance company may be wondering why his son his driving the car — especially if Roger hadn’t put him on the policy as a driver of the car. In the eyes of the insurance company, because Roger was just trying to get a lower rate for his son, he had defrauded the insurance company. Not only will Roger face jail time, but he and George will have a tough time ever getting auto insurance again.
So a simple act of kindness to your child can end in suffering. If you have a similar problem, you are going to need some legal advice on your next moves. Contact the Law Offices of Anthony Carbone today for a free consultation.