Can an insurance company force me to repay monies they paid to me in error?

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Can an insurance company force me to repay monies they paid to me in error?

I reported my car missing as stolen without knowledge or notification that it had been repossessed. The insurance company did an investigation and paid for the “stolen” car. They now state that they are holding me liable to repay this money. Can they do so?

Asked on November 10, 2010 under Bankruptcy Law, Pennsylvania

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Well, yes, they can indeed.  What it looks like from the outside looking in is insurance fraud.  That is where they are coming from regardless of how innocent you believe the matter to be.  So now that you "realize" that the car was in fact repossessed you will have to pay back the money they paid you.  Otherwise they are going to come after you big time here.  If they are only asking for repayment at this point you should be glad.  If they attempted to prosecute you for insurance fraud things would be really bad for you.  Be very careful on how you proceed here. There really are no options.  Good luck. 


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