Quora Answer: What Will Get You Blacklisted by Insurance Companies?

The following is my answer to a Quora question: “What will get you black listed by insurance companies?”

Making a fraudulent claim would cause an insurance to cancel all your coverage, refund your premiums less costs, make a police report, and deny you future coverage.  And if one insurer does so, other major insurers will either follow suit, or accept your future application for coverage with heavy loading.

Another, far more common reason for coverage to be rescinded, would be material omission of salient facts, misrepresentation and outright lying.  This will most likely be caught in underwriting, or during a claim.  Again, the consequences are the same, but there will not likely be a police report since it is harder to prove fraud.

In either case, should a claim already be paid out, the insurer will sue you to recover the payout, plus costs.  It will be very expensive.