Maintaining mailing address in another state to get cheaper car insurance

[54and70more]

What is the name of your state (only U.S. law)?

 

[ecmst12]

No, it's not legal to use a mailing address as your physical address to get cheaper rates. Insurance is based off of where the car is garaged, not where you have the bills mailed. Giving the wrong address (especially the wrong state) is material misrepresentation and will cause you all sorts of problems.

 

[tranquility]

What do you think the result SHOULD be?

I suspect that's what it is. (Unless you think things should be wrong.)

 

[swalsh411]

If you ever actually need your insurance (you know, the reason you pay for it) you may find yourself not covered due to your fraud.

 

[54and70more]

I'm the OP and I don't see the original post, unless I'm doing something very wrong. So I don't know if I'm just not seeing it, or if ppl are just simply replying to the title. So in the interest of full disclosure, it's as follows. Guy moving Minnesota wants friend in Iowa to allow him to have a few magazines sent to Iowa friends house -- thus giving MN guy and IA address. And, MN guy has the IA guy go to the county DOT and get his license tags, once a year. IA guy goes to the local insurance agency every 6 months and pays MN guy's premium in cash. MN guy comes to IA every 4 years (or whatever) to renew his drivers' license. So MN guy has an Iowa address, Iowa plates, Iowa insurance, and Iowa license. Among my questions on the original post were: 1. Is this legal? Since after all, people with two addresses likely do it all the time? 2. What would happen to the accomplices mentioned above, i.e. the guy providing the fake address, etc?

 

[ecmst12]

We were replying to your title.

No, none of that is legal and it's all extremely stupid for the person living in MN. He's the one whose insurance is going to deny coverage if he ever gets into an accident. AND he's defrauding the DMV.

The other guy? Whatever, he has nothing to lose.

 

[LdiJ]

We were replying to your title.

No, none of that is legal and it's all extremely stupid for the person living in MN. He's the one whose insurance is going to deny coverage if he ever gets into an accident. AND he's defrauding the DMV.

The other guy? Whatever, he has nothing to lose.

There would be one exception to that, that I don't believe applies but I will mention it anyway. If the person in question is simply away at college, they may maintain residency in their home state and it would not be illegal for their car registration, insurance and license to be in their home state. I also believe that the same applies for military members as well, as they are permitted to retain home state residency.

Other than that, I agree with everybody else.

 

[sandyclaus]

There would be one exception to that, that I don't believe applies but I will mention it anyway. If the person in question is simply away at college, they may maintain residency in their home state and it would not be illegal for their car registration, insurance and license to be in their home state. I also believe that the same applies for military members as well, as they are permitted to retain home state residency.

Other than that, I agree with everybody else.

If MN guy is returning to IA every 4 years or so, I think it's safe to assume it's NOT because they are a student away at college or a military member. Sounds to me like the person is simply trying to make it APPEAR that they live in IA.

I should also mention that most states require residents to obtain a new driver's license once they have lived in their new state of residence for a certain amount of time. For MN, new residents with an out-of-state license must obtain a Minnesota driver's within 60 days of establishing a permanent residence in MN (4 years is more than sufficient time for a permanent residency to be established), AND they would be required to surrender the IA license in order to obtain the new license in MN to meet this requirement.

If the guy insists on trying to pull off this stunt, I can't wait until he gets caught. The fines and penalties alone should more than outweigh the savings he thinks to get by misrepresenting his state of residence for insurance purposes. Not to mention the surprise the guy gets if he is involved in a motor vehicle accident and the insurance refuses to cover him due to his fraudulent misrepresentation of his IA residence.

 

[LdiJ]

If MN guy is returning to IA every 4 years or so, I think it's safe to assume it's NOT because they are a student away at college or a military member. Sounds to me like the person is simply trying to make it APPEAR that they live in IA.

I should also mention that most states require residents to obtain a new driver's license once they have lived in their new state of residence for a certain amount of time. For MN, new residents with an out-of-state license must obtain a Minnesota driver's within 60 days of establishing a permanent residence in MN (4 years is more than sufficient time for a permanent residency to be established), AND they would be required to surrender the IA license in order to obtain the new license in MN to meet this requirement.

If the guy insists on trying to pull off this stunt, I can't wait until he gets caught. The fines and penalties alone should more than outweigh the savings he thinks to get by misrepresenting his state of residence for insurance purposes. Not to mention the surprise the guy gets if he is involved in a motor vehicle accident and the insurance refuses to cover him due to his fraudulent misrepresentation of his IA residence.

I don't disagree at all. I was simply pointing out the exceptions.

 

[ecmst12]

If a student is going out of state to college, they don't have to change their license or registration but they SHOULD report the correct address where the car is being kept for the majority of the year. The insurance company may or may not change the rating because of it, but if it's been reported, then the driver has done his job and coverage will not be in danger if there is an accident.

A military member should use the address where they are stationed to insure the car, regardless of whether they are required to change the drivers license and registration of the car to the current state. I don't know the rules on that, but insurance risk is determined, in part, by where the car actually is. Not where the driver/owner may have lived in the past and may live again in the future, but where the car is actually being kept and driven RIGHT NOW.

 

[54and70more]

Let's say he has an accident. If he has an Iowa drivers' License, Iowa address on the license, Iowa plates, and Iowa insurance -- how would it be found out he lives in Minnesota?

 

[sandyclaus]

Let's say he has an accident. If he has an Iowa drivers' License, Iowa address on the license, Iowa plates, and Iowa insurance -- how would it be found out he lives in Minnesota?

Pretty easy, especially if the driver LIES about still living in Iowa. How exactly would they explain that they haven't been staying in Iowa for at least 60 days, yet they still have an Iowa driver's license, an Iowa address on the license, Iowa plates and Iowa-based auto insurance?

A good insurance investigator will know exactly what questions to ask, and if just one of the answers results in a recognizable lie, they are SO busted.

 

[ecmst12]

Well, the fact that he will be IN MINNESOTA when it happens will be the first tipoff.

 

[54and70more]

Not sure I follow, SandyClaus. And for the record, I agree it's a horrible idea. But say the guy is driving in Minneapolis, and has a fender bender. The cop comes and our man produces a drivers license, with his picture, saying he's Joe Blow from Iowa, address 1234 Main street Des Moines, license plates from Iowa and current, and shows current proof of insurance from Iowa insurance company. Why would anyone (cops, insurance co.) even suspect he lives someplace other than where ALL that documentation says he does? And how would they find out?

 

[54and70more]

In other words, why wouldn't they just treat him as one of the zillion Iowans visiting Minnesota?