Filed under auto insurance claims questions.

What happens when my insurance company discovers past car insurance claims?
Unless you have a dubious past with previous insurance claims, there should be no problem at all. You can be assured that an insurance company will do extensive research on your insurance history on a periodic basis. It’s part of their business activities. They are not specifically looking for fraudulent claims but using the research as part of their risk reduction objective especially when your policy is up for renewal.

However, there are cases when accidental fraud occurs. This could be a mistake in filing out the insurance forms by giving the wrong information or not updating your personal details. It could also include conflicting reports on accident claims or by listening to someone who gives them the wrong advice on insurance.

The problem with accidental fraud is that if caught, there are penalties to face like a denied claim or the insurance company cancelling out the policy altogether. It is even possible for a misdemeanor conviction should the insurance company pursue a legal case against you.

On the other hand, if you are “claims-happy” and each one can be explained reasonably to the insurance company with documents to back up each claim, you should not be apprehensive at all. This is what insurance is for.