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Is Using a Different Address to Save on Auto Insurance Illegal?

You’re tired of paying for high auto insurance rates where you live, so you use a different address in a small town to save a few bucks. You figure, “no harm, no foul.” After all, your cousin’s cool with it and what your insurance company doesn’t know won’t hurt them.

Because where you live, generally, plays a vital role in determining what you’ll pay for car insurance, fudging or outright lying when providing information for an auto insurance policy can end up costing you more than you might think. In fact, things could get quite uncomfortable as you’ve essentially committed a crime known as insurance fraud.

Busy street in New York City

While premiums can vary greatly from state to state and may even differ between neighborhoods – from one side of the railroad tracks to the other – auto insurance companies use an abundance of geographic information to set rates, including:

Weather – good and bad
Crime rate – the higher the crime rate, the higher your insurance rates
Population – densely populated areas cost you more in auto insurance
Number of uninsured drivers – self-preservation tool for insurance companies
Incidence of DUI convictions – the more DUI’s per capita the higher the premiums for policyholders

Man in handcuffs behind his back

Insurance Fraud Is No laughing matter

Insurance fraud is no laughing matter. And, it isn’t a victimless crime. If your insurer gets wind that you’re not living at the address where your vehicle is registered, they will investigate. And, if they find out you’re trying to pull a fast one to save on your rates, they won’t be laughing.

One of the ramifications of this type of insurance fraud – depending on the situation – could lead to your insurance policy being canceled. Your insurance carrier could also file criminal charges against you, which could result in a major fine, jail time, and extreme difficulty obtaining auto insurance in the future, if you’re convicted.


Denial of Claims

If you’re not found out until you have an accident, but your insurance company discovers your fraudulent antics in the course of the claims process, your claim will not only be denied, you’ll then have to deal with all the other stuff – policy cancellation, fine, jail, and no insurance. That means, all damage to your vehicle as well as others involved in the crash will be out of your pocket.

In addition, you may have your driver’s license suspended until the claim is fully paid to the satisfaction of the court. This, in turn, could ruin your credit should you be unable to pay the claim and – worse – if you caused severe injuries, you could face a lawsuit with no one in your corner…even though you weren’t at fault.

Report card on a desk

Legitimate ways to save

There are legitimate ways to save on your auto insurance rates you may want to consider. These include:

Take advantage of discounts
o Safe driver
o Multi-car
o Anti-theft device
o Complete a defensive driving course
o Multiple policies (homeowners, renters, auto)
o Good grades

• Pay as you go (if available)
This is an insurance policy that only charges you for the miles you actually drive as monitored by your insurer.

Are you getting the best rate on your car insurance? If you are not sure, call USAgencies now at (800) 420-3712 to speak with an agent and get a free car insurance quote. You can also get a free auto insurance quote online.