An attorney stated not updating address wouldn't affect ins coverage?

[plugandplay]

CA

I borrowed a vehicle and the owner had not updated her home address with her insurance company. She had been going back in forth between the old and new address because she had family living at the old address, meaning sometimes she was just visiting other times staying there a few days. Recently though, she has mostly been at the new address for over 6 months to a year, possibly over a year.

Can the insurance company deny the claim based just on her not updating her address? Or does it come down to where the vehicle was mostly kept? If it was kept mostly at the new address where she was living, will they just conclude that she failed to update her address and provide coverage? What if it was kept at the old and new address about 50-50 percent of the time which Im assuming since she was going back and forth for a while.

One attorney said not to worry about the address situation but I know an insurance company will try whatever they can to deny coverage. Shes a good friend of mine and isnt trying to screw anyone over. She just forgot to update her address. Thank you so much

 

[ecmst12]

Well, not that it's really any of your business, but it's unlikely they'd be able to deny coverage. What they could do, is if the address change would have caused an increase in premium, is to back-charge her the difference for the time that she's living at the new address unreported.

 

[CenTex71]

Well, not that it's really any of your business, but it's unlikely they'd be able to deny coverage. What they could do, is if the address change would have caused an increase in premium, is to back-charge her the difference for the time that she's living at the new address unreported.

My experience in the insurance industry makes me less hopeful. If there is a big difference in rates (between LA and something more rural) they very well could deny coverage based on false information. We did it all the time in NYC, with people claiming to be living in NJ or PA to avoid the big rate increase. OP is right, they'll spend 999$ to avoid paying 1000$. I don't know about the coverage discrepancies in CA, but it could very well constitute fraud (in the eyes of the insurance company).

 

[ecmst12]

It's difficult to deny coverage, because generally it doesn't hurt the insured as much as the person they hit. But if you're talking about 2 different states, it might be possible.

 

[plugandplay]

My experience in the insurance industry makes me less hopeful. If there is a big difference in rates (between LA and something more rural) they very well could deny coverage based on false information. We did it all the time in NYC, with people claiming to be living in NJ or PA to avoid the big rate increase. OP is right, they'll spend 999$ to avoid paying 1000$. I don't know about the coverage discrepancies in CA, but it could very well constitute fraud (in the eyes of the insurance company).

That's what I was thinking! Well I was thinking about the vehicle location but you brought up the rates. Did the insurance company you work for deny it based on you guys figuring out those people were trying to save money by giving the wrong location or was it denied just because they gave the wrong location like this example, failed to update their location.

I see the first as someone trying to save money and lying to the insurance company and the other as just someone forgetting to do the update. Did it not matter what the real reason was and you guys would just deny anyway?

 

[CenTex71]

That's what I was thinking! Well I was thinking about the vehicle location but you brought up the rates. Did the insurance company you work for deny it based on you guys figuring out those people were trying to save money by giving the wrong location or was it denied just because they gave the wrong location like this example, failed to update their location.

I see the first as someone trying to save money and lying to the insurance company and the other as just someone forgetting to do the update. Did it not matter what the real reason was and you guys would just deny anyway?

If you simply forgot to update wouldn't be a problem. It's all about the length of time and whether or not forgetfulness rises to the level of fraud. I couldn't tell you, based on your specifics which way it would go, but NYC rates are some of the highest in the country and it was a rampant practice - it very well could be different for you. All you can do is ask the insurer.

 

[plugandplay]

If you simply forgot to update wouldn't be a problem. It's all about the length of time and whether or not forgetfulness rises to the level of fraud. I couldn't tell you, based on your specifics which way it would go, but NYC rates are some of the highest in the country and it was a rampant practice - it very well could be different for you. All you can do is ask the insurer.

I dont want the insurance company to think I am trying to pull something on them by asking them that question. I think theyll look into the address thing with a magnifying glass because of the recent accident when in reality, I didnt update. I wasnt trying to save money. If anything where my new place is should be cheaper insurance! I'm just getting more and more of an idea that insurance companies will do anything to deny claims. is it ok to be a little paranoid or worried about what they might try to dig up even when its not the truth? You worked at one, I would appreciate your honesty tremendously.

 

[CenTex71]

I dont want the insurance company to think I am trying to pull something on them by asking them that question. I think theyll look into the address thing with a magnifying glass because of the recent accident when in reality, I didnt update. I wasnt trying to save money. If anything where my new place is should be cheaper insurance! I'm just getting more and more of an idea that insurance companies will do anything to deny claims. is it ok to be a little paranoid or worried about what they might try to dig up even when its not the truth? You worked at one, I would appreciate your honesty tremendously.

Honestly I can't say. But on the basis of the facts as you've laid out, I wouldn't stress, it looks like simple forgetfulness. Just be ready if they do ask.

 

[ecmst12]

The insurance company CAN'T just "do anything to deny claims". If you're talking about intentionally misrepresenting the address to save money, especially if you're claiming to live in a totally different state, then that's fraud and is grounds to deny a claim, but that's a pretty high hurdle to prove. If you're just talking about one county to the next, with no major difference in premium, then that's really not something you'll have to worry about. If the insurance company finds that you should have been paying a slightly higher amount, then they may back-charge you the difference in premium. Of course, if the new address would be cheaper, they won't refund you anything for forgetting to update, but you won't lose anything more either.

 

[plugandplay]

The insurance company CAN'T just "do anything to deny claims". If you're talking about intentionally misrepresenting the address to save money, especially if you're claiming to live in a totally different state, then that's fraud and is grounds to deny a claim, but that's a pretty high hurdle to prove. If you're just talking about one county to the next, with no major difference in premium, then that's really not something you'll have to worry about. If the insurance company finds that you should have been paying a slightly higher amount, then they may back-charge you the difference in premium. Of course, if the new address would be cheaper, they won't refund you anything for forgetting to update, but you won't lose anything more either.

That was helpful thank you. I was not trying to save money off them.

I am now just wondering come a couple of attorneys on another forum told me that whether they deny the claim will depend on the wording in the insurance policy? It makes me think there are some insurance companies that are that strict that they will try to deny based on any sort of failed address update.

I think I need to have someone call the insurance company and ask them about this stuff. If it comes from me, I dont want them to make assumptions since I have an open claim still

 

[plugandplay]

Hi forum users, I have a different but similar situation I am researching for someone. Could you please offer feedback and input?

"Accident and address location - California

I was in a car accident not long ago. I am ok thankfully. I now have some papework. I have not updated my address with my car insurance for almost two years and they are asking me to sign forms that have my old address on them. Both addresses are in the same state. These look like forms to cover my damaged vehicle. I want to sign to get everything processed but don’t know if they will deny coverage if I sign with the wrong address? How would they find out?

At the same time, if I tell them about the new address, I am worried that they will deny coverage because I didn’t update the address. I didn’t update because my wife and I didn’t plan on separating permanently but we did after we were back and forth of being together and not. She’s kept her car at my old place where I lived with her, another car there (the one in the accident) and I’ve mostly kept another car over here.

I have State Farm. Should I tell them about my new address or sign with my old one? I appreciate your time and help."

 

[ecmst12]

The answer is the same as I told you before. He needs to update his address as soon as possible. If there was a premium difference between the old and new addresses, he can expect to be charged the difference. Coverage denial is unlikely, but if they feel he intentionally failed to update his address to avoid a rate hike, they may non-renew the policy.