• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Auto Insurance Address Fraud

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

smoothcall

Junior Member
What is the name of your state? VA

What are the repercussions of Auto Insurance Address Fraud? i.e Living in one state, but quoting your address and getting insurance from a neighboring state.

What are the government laws around this? What is the role of the insurance companies in this and what is the role of the police force?

This is done all around the country by countless people that move as well as college students.

What are the ramifications?
 


ecmst12

Senior Member
It's not something that will land you in prison. If your insurance company finds out, they can just charge you the difference in premium, back to the start of the policy period (and possibly further).
 

moburkes

Senior Member
We've denied claims. That is considered material misrepresentation.

That is a HUGE bad thing to do. The medical coverages are different in neighboring states. If one of the states is NY, felony comes to mind. The premiums are different. License suspensions. The minimum amounts of liability are different.

Not worth it.
 

ecmst12

Senior Member
Depends on the state, but I don't think we can do that in my states, unless it is discovered within the first 60 days and we can retro-cancel the policy.
 

moburkes

Senior Member
You're talking about freelook. Material misrepresentation can get a policy cancelled at any time. Even if the policy is not cancelled, it can get a claim denied.
 

ecmst12

Senior Member
I just know when I was training here they gave me an example where it did NOT hold up, so at least here, we don't deny claims for address misrepresentation. The case was even in NY, where my company does not write business!
 

moburkes

Senior Member
I just know when I was training here they gave me an example where it did NOT hold up, so at least here, we don't deny claims for address misrepresentation. The case was even in NY, where my company does not write business!
Okay. Maybe not in PA, but for SURE in NY.

And, depending upon the type of claim, this is what could happen, assuming that it is not denied.

Insurance is cheaper in PA, than in NY. Insured claims to live in PA, where the premium is $2000/year. The premium in NY is $12,000/year. So, insured saves $10,000/year by claiming a PA address. Insured has a claim 9 months into the policy. Insurance company realizes the deception, but honors the claim. Insurance company requires the PA policy is rewritten into a NY policy. Insurance company will gladly pay the claim - as soon as the NY policy premium of $9000 is paid for. Of course, they refund the premium of $2000 for the PA policy. The claim is for $5000.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top