Question from a reader:
I panicked and signed up for insurance after an accident, but when I honestly admitted that I had made a false declaration, I found out later that I could no longer get insurance. In this case, how long will I be unable to get insurance?

Considering Insurance Enrollment After an Accident

Many people have experienced the panic of
signing up for insurance after an accident. Especially when faced with an unexpected incident, it’s natural to feel rushed to resolve the immediate problem due to fear. I remember feeling overwhelmed with such emotions when a friend had an accident during my university days. However, hearing the story of someone who honestly admitted to making a false declaration and subsequently became unable to get insurance made me reflect on various aspects.

Insurance Contracts and Their Reliability

Insurance is a type of contract. This means that when entering into a contract, mutual trust between both parties is fundamental. Insurance companies assess risks and set premiums based on those risks. However, if the declaration is false, that evaluation can collapse fundamentally. Since insurance companies calculate risks based on the information provided by the policyholder, a false declaration undermines the very foundation of the contract. For example, if someone signs up for insurance after declaring, “I have no accident history,” the insurance company may underestimate that person’s risk. However, if they actually have an accident history, they may end up having to pay a large insurance payout when an accident occurs. This is highly disadvantageous for the insurance company, which is why they can invalidate the contract.

Impact of False Declarations

Now, let’s consider the problem the questioner is facing. How does the insurance company handle a false declaration? In many cases, insurance companies have the right to terminate the insurance contract if there is a false declaration. This not only means the contract is invalid but also affects the ability to enter into new insurance contracts in the future. In reality, what happens to future insurance enrollment if a contract is terminated due to a false declaration? Many insurance companies may keep a record of past false declarations. As a result, the period during which new insurance enrollment becomes difficult varies by insurance company and country, but it is typically several years. Specifically, periods of 3 to 5 years are commonly set.

Psychological Aspects of the Impact

Here, the psychological impact is crucial. Judgments made in a state of panic after an accident often lack calmness. When people feel fear, they may be unable to make rational decisions. Reflecting on my psychology studies in university, I understand well the precariousness of judgment under stress. I can empathize with the feeling of wanting to “get insurance!” in a rush due to the shock of having been in an accident. However, such haste can lead to significant problems later on. It is essential to reconsider how much risk one takes on by making a false declaration. Because an accident has occurred, it is important to have the courage to honestly convey one’s situation. This courage can help avoid future troubles.

Reattempting Insurance Enrollment

If one becomes unable to get insurance after an accident, what should be done? First, it is important to check the conditions for re-enrollment, which vary by insurance company. By understanding the reasons for contract termination and the period required for re-enrollment, one can consider the next steps. Additionally, consulting other insurance companies is also an option. Recently, there has been an increase in insurance products that carefully assess risks and allow individuals with accident histories to enroll. Of course, premiums may be higher, but it is important to explore avenues for enrollment.

Conclusion

The issue of insurance enrollment after an accident needs to be considered not only from a legal perspective but also from a psychological aspect. If one becomes unable to get insurance due to honestly admitting to a false declaration, it is crucial to understand how the invalidation of the contract will be handled and how long the re-enrollment period will be. Above all, it is important to remain calm when involved in an accident and to have a clear understanding of one’s situation. Rather than acting hastily, taking action based on accurate information is the first step to avoiding future troubles. Insurance is a preparation for unforeseen events and provides peace of mind, so it is essential to use it based on correct information.