Auto Insurance Claims: auto insurance, navy recruiter, dear zoe

Question
Hello,

I don't know if you can answer this question, but right now I don't have anyone else I can turn to.  My 22 year old put someone's auto insurance in his name.  The car is not my son's.  Apparently, he's just using his name and my address (my son lives with me).  My son did this without asking me first.  I found out about it when he received the insurance policy in the mail.  I confronted him about it as soon as I saw it, and we've been arguing about this ever since (I know this is a whole other issue -- my sons lives with me but is very hard-headed and feels like there are certain things he can do without consulting me).

Anyway, I told him that I thought this was a bad idea and I want him to cancel this policy.  I didn't tell my husband he did this because I'm trying to avoid problems (I know, another totally separate issue).  My husband is his step-dad.  Well, lo and behold my husband found out about it and told me that my son had to cancel this policy.  I agree with him, but my son refuses to listen to me (I know another issue completely).  My question is I'm scared that because my home address appears on this policy, that God forbid this person my son is helping out gets into some sort of problem, that I'm the one who will suffer the consequences -- I might get sued for my house or something.  I want to call the insurance company, but fear that I might get my son into trouble.  I know what he's doing is wrong, but I don't want to get him into trouble either.  Is there anything you can tell me.

Thank you so much for your assistance.

Zoe

Answer
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Dear Zoe and Step-Dad,


Call the nearest Navy recruiter and get that boy signed up for the U.S. Marine Corps!  He needs that kind of Drill Instructor structure in his life or he is going to get himself -- AND BOTH OF YOU -- in a lot of trouble.

Seriously, what he is doing is both fraud and possibly criminal.  I do not think anyone would prosecute him for it, but he does expose everyone involved to a fraud claim.

What in the world does he think would happen in the event of an accident?  The police report shows the address of the driver, as does his registration (unless he used your son's name and address for THAT too).

The insurance company won't even pay if they find out.  An insurance policy procured under false application is fraudulent and will not be honored by the company.  

AND, WORSE YET, if they DO pay and should they later find out -- even years later -- they can recoup what they paid on account of fraud in the inception of the contract.  Guess who they will look to for recoupment!  It ain't gonna be your son or his buddy.

Did he ever think that if anyone else ever found out that the insurance company paid based upon this arrangement he has just set himself and you up to be subject to a threat of exposure for years to come?  DUH!

Your son -- and the driver --  and both of you can all be held accountable for this if discovered, and it is not worth the risk.

I would prepare a written statement that tells the insurance company the truth, and offer your son and his  friend the option to make an IMMEDIATE insurance policy address change on their own, or else you will mail the statement via certified mail to the company.

AND MAKE SURE that the friend shows you the new declaration page showing the policy coming issued to him at his address.

I trust that this helps, and respectfully request that you leave some feedback so I can know what is helpful for our visitors.


Best Wishes,

Dr. (personal injury) Settlement, J.D.
www.SettlementCentral.Com