Can you legally use a different address to get cheaper car insurance?

Insurance companies consider several factors when setting auto insurance rates, one of which is location. This is because vehicles in some locations have a higher risk of sustaining damage than others.

Knowing this, you may be tempted to use a fake address to obtain cheaper auto insurance rates. However, know that doing so is not only wrong, it is a form of insurance fraud and, therefore, illegal. 

If you’re searching for affordable car insurance, try entering your ZIP code into our free online quote tool today.

Can you use a fake address to get cheaper car insurance rates?

In short, the answer to whether you can use a fake address to score lower car insurance rates is no. 

Among several other factors — including your driving history, the make, model, and age of your vehicle, and vehicle use — one factor to which insurance companies give considerable weight is your location. Deliberately giving the wrong address is breaking the law.

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Why do insurers care what address you use?

When it comes to what affects auto insurance rates, location plays a substantial role. For starters, insurers consider where you plan to store your vehicle when it’s not in use. Do you plan to store it in a secured garage or park it on a public street?

People who have enclosed garages to keep their vehicles are likely to score lower rates than individuals whose only option is street parking. The rationale is that vehicles in garages have little to no risk of sustaining damage from falling objects, weather-related events, other vehicles, or criminals. Cars parked out in the open, however, are subject to all these dangers and then some.

Additionally, insurers consider the crime and accident rates in your location. Are rates of theft and vandalism high? What about car accident statistics? If they are higher, your auto insurance rates will likely increase. 

Read more: What to Do if Someone Uses Your Address for Their Car Insurance

Finally, auto insurance companies consider environmental factors. Is your region prone to flooding, hail storms, or heavy winds? Though you cannot control Mother Nature, insurers certainly account for it and the devastation it may cause.

Your Work Location Matters, Too

Why does my car insurance need my work address? If you use your vehicle for commuting, your auto insurance provider may request your job location. Similar to your home address, the insurer assesses factors such as parking conditions at your workplace, crime rates, accident frequencies along your commute, and environmental considerations. This information helps determine your risk profile and influences your insurance rates.

What happens if your insurer finds out you used a fake address?

There are several consequences to using a fake address on your car insurance application, ranging from claims denial to criminal charges.

Your Insurance Company Will Send Your Documents to the Wrong Address

The most minor consequence of using a fake address on your insurance application is that you will never receive your insurance documents. These documents include your insurance cards, which serve as your proof of insurance. 

While this outcome is of little consequence to people these days, as most drivers today can download their policies at any time from any mobile device, you do run the risk that your personal information will fall into the wrong hands.

The Insurance Company Can Cancel Your Policy

If your insurance company finds out that you used a fake address on your application, it can cancel your policy at any time and without giving you notice. If one insurer terminates your policy on the grounds of fraud, you may find that other insurers will refuse to cover you as well.

Your Insurance Company Can Deny Your Claim

An insurance policy is a binding contract. Just as with any other type of contract, the contract is only as legitimate as the information it contains. If you falsify any information in this contract, the agreement becomes void.

If, after you file a claim, your insurer finds out you falsified your address, it can use the fake address as grounds to terminate the contract on the spot and refuse to pay your claim. You have no grounds to protest, as you knowingly lied on your application.

You May Face a Lawsuit

Say your insurance company does not discover that you falsified your address and pays out your claim. Later, however, the company does find out that you do not live where you say you do and that you never did. It can demand repayment of the benefits it paid you. 

If you refuse or cannot repay the benefits, your insurer may sue you to recover the amount you recovered via fraudulent means.

You May Face Criminal Charges

In the worst-case scenario, you could face criminal charges of insurance fraud. Though it is unlikely that your insurer will press charges, the Federal Bureau of Investigation can and does prosecute individuals for auto insurance fraud. This is an attempt to crack down on the pervasive problem, which costs insurance companies between $5.6 billion and $7 billion in losses each year. 

If convicted of insurance fraud, you face hefty fines and possibly jail time.

How can you legally save money on car insurance?

There are many proven ways in which you can score low insurance rates without committing fraud by giving a false address:

• Look for car insurance discounts
• Improve your credit score
• Improve your driving record
• Choose a higher deductible
• Look for safe driver discounts and devices
• Invest in a safer car with low mileage

Though it may take time to do some of the things on this list, each of these factors is under your control and legal.

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Look for Cheap Car Insurance the Legal Way

How do you get cheaper car insurance quotes? If you’re not satisfied with your current auto insurance rates, do your homework, shop around, and change the factors you can control. Refrain, however, from using a fake address, as it will end up costing you more in the long run when your insurance company discovers the truth.

To read about what happens when someone else uses your address for their car insurance, consider reading our article here. Enter your ZIP code into our free quote tool today to start comparing multiple auto insurance quotes.

Case Studies: Legally Using Different Addresses for Cheaper Car Insurance

Case Study 1: Acme Insurance -The Moving Family

The Johnson family, consisting of John, Mary, and their two children, relocated from an urban area to a rural town for better job opportunities and a quieter lifestyle. Upon updating their address with Acme Insurance, they discovered that their car insurance premium decreased significantly.

Acme Insurance acknowledged the reduced risk of accidents and theft in the rural area, resulting in a lower premium for the Johnsons.

Case Study 2: SafeDrive Insurance – The College Student

Samantha, a college student, lived in a major city but went to school in a small town. To save on car insurance costs, she provided her school address to SafeDrive Insurance, which reflected the lower risk associated with the town’s safer driving conditions and lower crime rates.

By doing so, Samantha was able to obtain a more affordable insurance premium while still complying with the terms and conditions of her policy.

Case Study 3: SecureAuto Insurance – The Commuter

David worked in a bustling city but lived in a suburban neighborhood outside the city limits. As a daily commuter, he spent most of his time driving to and from work, rarely using his car for personal purposes in the city.

By updating his car insurance policy with SecureAuto Insurance to reflect his suburban address, David received a lower premium that accounted for the decreased likelihood of accidents and theft associated with his residential area.

Case Study 4: QuickCover Insurance – The Snowbird

Retired couple Robert and Elizabeth split their time between two residences: a primary home in a northern state and a winter home in a southern state. Understanding that insurance rates can differ based on location, they provided their southern address to QuickCover Insurance during the winter months, taking advantage of the lower premium associated with the warmer climate and reduced risk of accidents on snow-covered roads.

case Study 5: Elite Insurance – The Multiple Policy Holder

Andrew had both a car and homeowner’s insurance policy with Elite Insurance. He recently purchased a new home closer to his workplace, significantly reducing his daily commute. As a result, he was eligible for a lower car insurance premium. By updating his address with Elite Insurance, Andrew received a discounted rate based on the reduced driving distance and the decreased likelihood of accidents.

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