What If You Lie About Where You Live to Your Car Insurance Company?

Car insurance companies use many different variables to determine the rates people pay on car insurance premiums. Lying to your auto insurance company can result in a lot of issues, including the possibility of a car insurance claim being denied. This can result in thousands of dollars not coming to you that otherwise would be. It can be the difference between being financially stable and running into financial hardship. There are numerous consequences that a person can face if they lie about where they live to their automobile insurance company. At a certain point, it can become insurance fraud.

Lying About Your Address In A Crowded City

Auto insurance companies provide a service to people, giving them financial protection in return for the premiums they pay. In the United States, drivers are required to carry auto insurance legally. In the state of New Hampshire, drivers can technically not have automobile insurance, but they still have to prove that they can pay for damages should they cause an accident. Some people try to cut corners and save money by lying to their auto insurance providers. If you are telling the car insurance company that you live in a safer city than you do, you’ll save money on your car insurance plan. Also, however, you will be at risk of having your insurance claim denied if you file one. In addition, your car insurance policy can be canceled altogether.

Your location is a significant factor in determining your auto insurance premiums, and because it plays such a crucial role, lying about it can be fraud because the car insurance company cannot charge you accurate rates. Each state has different laws that can vastly change the prices a person pays. Drivers in the state of Michigan, for example, may pay higher rates than neighboring states. The statistics from your area are used to determine whether or not you are at a higher statistical chance of your vehicle being vandalized or broken into. Some ZIP Codes have higher percentages of accidents than other areas, for another example.

Consequences Of Lying To Your Auto Insurance Company

Many insurance companies will spot mistakes early on and will check your details against a database of claims and applications. This allows your automobile insurance provider to see any of the previous claims you have made. In some cases, drivers are lucky, and the insurance provider will spot a mistake early in the application process. In some cases, an insurance provider may contact you to confirm your current address. This is more likely if you have graduated or moved recently.

Lying about your location on a car insurance application is considered fraud. In some areas, it can be a minor form of fraud. This includes accidentally typing the wrong address in an application form. If you are using your parent's address to get cheaper insurance premiums, however, you could be engaging in a larger type of fraud overall. Sometimes this is an honest mistake; other times, it is insurance fraud, but either way, it is essential to check with your automobile insurance company to make sure the location on your car insurance application is accurate.

What Happens If I Live In Multiple Places Or States?

Another situation that can happen to people is that they live in multiple states or cities. Some people have more complicated living situations than others. Determining which location to use with your automobile insurance plan can be complex, but in most cases, your insurance company will want to know the address for where your automobile is parked most nights of the week. If you live in a city, for example, but visit your partner or family on the weekends, you cannot use their address to get a cheaper automobile insurance plan.

If you get into an accident and make a claim; the automobile insurance company will investigate your claim to make sure that the location you claim you are living in is accurate. The company may make sure your car is legitimately parked at a certain address on the majority of the nights of the week, as you claim. If you are unsure about whether or not you're listing the proper address on your vehicle insurance policy, contact your insurance coverage provider and ask. They are happy to answer any questions to help you get the most accurate automobile coverage rates.

Also, remember that every few years you should compare car insurance rates from multiple providers to find the best prices on policies for you. Over time, the rates you will receive from certain companies will improve, while the rates from other companies will get worse. At Policy, you can get free car insurance quotes to find the best auto insurance plan for your situation.