New York, NY, February 20, 2012 --(PR.com
)-- A new FAQ from the writers at OnlineAutoInsurance.com explains the repercussions of lying to your insurer about where you keep your car—a practice called “rate evasion”—and why insurers take the matter so seriously.
When you compare car insurance
costs between places like downstate and rural New York, it’s not very hard to see why people who live in the urban downstate region would want to pretend they live somewhere else when getting quoted for a policy.
The pricing disparity between these areas was summarized pointedly in a 2011 report on rate evasion from the New York Independent Democratic Conference. The report, which used estimates from the Property Casualty Insurers Association of America, showed that, in 2009, the average premium for a policy in Brooklyn was more than $2,100, while the average in Syracuse was about $870.
That means drivers who keep their cars garaged in Syracuse could be paying nearly 60 percent less on average than their downstate counterparts.
Some might be tempted by this fact to use an upstate relative’s address when applying for coverage. But having your car registered at an address where you don’t live or even just putting a different address on your insurance policy could have serious repercussions, say the writers of the FAQ.
If you lie about where your car is regularly garaged, that amounts to misrepresentation, which is grounds for your insurer to basically void your coverage. That means you could be on your own paying damages you caused in an accident, all just because you tried to save a couple bucks on the premium by putting a different address.
Insurers take this matter so seriously because they use a person’s address to help gauge how likely the policyholder is to get into an accident and file a claim. Motorists in congested urban areas with high traffic volumes and high theft and vandalism rates are generally more likely to file claims than drivers in rural areas where traffic volumes are lower, and insurers price policies accordingly.
Misrepresenting your location can give insurers a skewed perception of the risk you pose, and that can amount in inaccurate pricing, which no insurance company likes.
For more on this and other auto insurance issues, head to http://www.onlineautoinsurance.com/compare/
to get access to informative resource pages and a helpful quote-comparison generator.
To access the full FAQ, follow the “Questions” link located at the top of any page on the site.