Why Your Insurance Might Deny a Claim Over Your Kids
You’ve paid your premiums on time for years. You’ve been a loyal customer. But after a jarring T-bone collision, instead of a check to cover your totaled car, you receive a legal summons. This nightmare became a reality for a Michigan mother recently. GEICO moved to rescind her policy entirely—not because she was at fault for the accident, but because she hadn't listed her 12-year-old daughter as a household resident on her insurance documents. At Godbey Law, we see insurance companies use "technicalities" to save their bottom line every day. While this specific case made waves in Michigan, Ohio drivers need to be equally vigilant. The "Rescission" Trap: How It Works Insurance companies often use a tactic called retroactive rescission. This is more than just a cancellation; it’s a legal move that treats your policy as if it never existed from the date of your last renewal. They typically claim "material misrepresentation." In plain English: they argue that if you had told them about every person living in your house (even a child who can’t drive), they would have charged you a different rate or declined to insure you. Is Ohio Different from Michigan? Every state has its own quirks. Michigan law specifically factors the number of "dependents" into insurance rating cells, which gave GEICO their legal opening. In Ohio, insurance companies still generally require you to list all household members. Even if your child is years away from a learner's permit, failing to disclose them can provide an insurance [...]
