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Car Theft claim and formal investigation
Lexus was stolen and recovered. Needs repairs. Lexus models are not supposed to be able to start without a key with a transmitter. We had all keys in our possession at the time of the theft and provided pictures of the windshield that stated NO Key was found as well as documentation from the tow yard signed into by the police.
Insurance Company is stating there had to be a key and have launched a formal investigation.
They wanted us to sign a release of our personal finances and to give them permission to interrogate our places of business, neighbors, etc. We said no.
We are innocent and shouldn't have to prove ourselves. We told them to stop the claim process.
Can we be sued for fraud even though we did nothing wrong?
Our decision was based on the numerous complaints against this company for similar situations and that the claims were either denied or investigations were still going on 9 months later.
We just want the car back.
Anyone can be sued for anything these days. So yes, it's possible. The thing is this. If you want coverage, then you are bound by the terms of your policy.
Your policy most likely has a "Duty to Cooperate" clause in it. These clause gives the right to the insurance company to look into your affairs if they believe this is important to the investigation.
An investigation does not make you guilty of anything, but they can inquire. Their inquiries must be reasonable, and in a theft of a vehicle that requires a key, they may feel that your financial affairs could indicate if you needed to dispose of the car.
Again, if you want coverage, you do want to read your policy and see what your rights are. Also, contact a local attorney.
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