Reader’s Question:
Is it illegal for me to give a different registration address on my car insurance? The reason why I’m thinking of doing this is that if I use my parents’ address, the car insurance rate is reduced to almost half. I currently live in Los Angeles, CA.
Sandy
Los Angeles, CA
Yes. It is illegal and a form of insurance fraud to give false information on your insurance application. The California Department of Insurance defines specifically states that fraud occurs when someone knowingly lies to obtain some benefit or advantage to which they are not otherwise entitled or someone knowingly denies some benefit that is due and to which someone is entitled.
Both you and your parents will be in trouble if you try to obtain auto insurance from your parent’s address instead of your own address where the car is actually garaged which as was previously mentioned, a form of insurance fraud or misrepresentation. If you did obtain insurance using your parents’ address and this false information was later discovered, your car insurance could be cancelled and if an accident occurred it may not be covered.
It is best to be honest with your insurance company and use your correct address instead of committing fraud. It’s not worth the risk even if it means lower rates. There are other options available for you to cut costs for your auto insurance. You can speak with your Los Angeles, CA car insurance agent about discounts or if there are driver programs in which to participate so that you can reduce your premiums.