My insurance policy was voided for misrepresentation. A
letter was sent to me stating that I would receive a full premium
refund for the policy. Does this mean I will receive all money paid
for the policy?
If your insurance company letter stated that your auto policy was
back to its inception and that you were receiving a full premium
refund, then you should receive all the money you paid toward your
When you started your policy there may have been some
nonrefundable fees included on top of the actual car insurance
premium, such as policy or agency fees that are allowed by state
laws. If you did have such fees, then depending on state laws and
your contract with the insurer, you may not receive the money you
paid out for these back; however, all of the money paid toward your
actual car insurance premium should be refunded.
Normally, if your car insurance policy is voided it means that
it's canceled as though it never took effect, and this may be a
bigger issue for you than how much money you'll be refunded.
If you now technically never had auto insurance coverage on your
vehicle with this carrier, it may be possible that your state could
deem this as a lapse in coverage and
Even if your state doesn't punish you for this situation, it's
likely going to be harder for you to find car insurance coverage
with a new carrier. When your last policy has been canceled (or
voided) out due to certain circumstances, car insurance companies
can find you too much of a risk to take on and not offer you a
You didn't mention what type of
your auto insurance policy was canceled for, but misrepresentation
is a big deal to car insurance providers and in many states is
considered a form of insurance fraud.
explains, there is a general principle in insurance law that an
applicant for insurance has the duty to disclose to the insurer all
facts material to the risk. Material facts are those that influence
an insurer's calculations of your premium or their decision of
whether they will issue you a policy at all. A
misrepresentation then is an inaccurate disclosure.
You can check with your state's insurance regulator for your
state's definition (and punishment) for misrepresentation on an
auto insurance policy, but typically it can be something as simple
as not listing an accident or traffic ticket, or something of
significance, such as omitting a licensed household member or
giving wrong information about the true owner of a car.
When applying for car insurance you need to give accurate
information. Without correct information on the application,
car insurance companies can't really determine if they will insure
you and if so for what premium amount.