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Address Fraud costs everyone

Sometimes people use a different address for lower auto insurance rates. So, you might be wondering how this type of thing affects what the rest of us pay for auto insurance.

Where a person lives is one of the factors that go into determining the auto insurance rate that person will pay. And not being truthful about where you live to your insurer will likely come back to cause problems later.

Giving an auto insurance provider an address that is different from where a person lives, and where their vehicle is garaged and regularly driven, is at worst, insurance fraud, and at best, misrepresentation.

In either scenario, the situation is grounds for the insurer to cancel the policy when discovered. And, if the discovery is due to an insurance claim, the claim is sure to be denied as well. There are serious financial repercussions for not being wholly truthful. Not only could any claim be denied, leaving the vehicle’s owner to foot the bill for repairs and whatnot, but having a cancellation will result in considerably higher premiums for at least three years.

All insurance fraud ends up costing other drivers more for their coverage. The Insurance Bureau of Canada estimates that fraud costs every Ontario policyholder about $236 a year.


Source: insurancehotline.com


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