Can another driver’s insurance company deny coverage based upon a fraudulent contract?

I was rear-ended by a vehicle with out of state plates. The driver and police report both indicated he was at fault. When I called his insurance company they tell me that he’s not listed as a driver on the policy. He owns the vehicle but doesn’t live in the state the truck is registered or insured in. His insurer says they don’t have any responsibility because he lied on his application. I was told that the vehicle, not the driver is insured, but they said

Asked on June 29, 2016 under Accident Law, New York


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You are incorrect: if a driver lies on or commits fraud on his insurance application, the policy is void. Insurance policies are contracts, and when one party to a contract commits fraud, the other may void it and is not required to perform (in this case, pay for damage). So the insurer woukd not be liable.
You can, of course, sue the at fault driver. Without insurance, he will have to pay your damages (if you sue and win) out of pocket.

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