I would like to make sure if it is illegal to have your car insurance registered to a different address than where you live? I live in Los Angeles, CA right now, but if I place the address for my car insurance to my parent’s house in another city, the rate is reduced by at least half.

Victor

Los Angeles, CA

It is illegal and a form of fraud to give false information on an insurance application, especially for the express reason of lowering your insurance rates. According to the California Department of Insurance, fraud happens when an individual knowingly lies to obtain some benefit or advantage to which they are not otherwise entitled or an individual knowingly denies some benefit that is due and to which someone is entitled.

An alleged wrongful act may be handled as an administrative action by the Department of insurance or the Fraud Division may handle it as a criminal matter depending on the specific issues involved. Trying to obtain car insurance from your parent’s address instead of your own address where the car is actually garaged would be misrepresentation and could get both you and your parents in trouble if done. If you did acquire car insurance using their address and this lie was later uncovered your car insurance could be cancelled and if an accident occurred it may not be covered since the insurance policy was set up using false information.

This can also be classified as material misrepresentation which as defined by the Department of insurance is a false statement given by an applicant of any important fact that, had the insurance company known the truth, it would not have insured the risk. Instead of committing fraud it is best to be upfront and truthful with an insurance company and use your correct address. If you want to try and reduce costs for your car insurance in Los Angeles, California ask about discounts or if there are driver programs in which to participate so that you can reduce your premiums.

If I live out of state with an out of state driver’s license, Will I have to have car insurance while driving in Burbank, California? I am a good driver with no accidents on my record

Gene

Burbank, CA

If you have car insurance on a car in one state typically it will extend and cover your vehicle in another state by conforming to at least that state’s minimum car insurance requirements.

If you are traveling from one state to another you will need to have car insurance on the car so that it is covered during the drive. Even if you came from a state where auto insurance is not strictly required on a vehicle and drove to Burbank, California, since California state law requires vehicles on their roadways to have auto insurance, or another form of financial responsibility, on them you would need to abide to this state law.

According to the California DMV all cars driven or parked on a CA street, road or highway must be insured.

Is it legal if I live in Northeast Cobb, GA and title a vehicle in FL so it would be cheaper? How would this affect auto insurance as well? Would it matter if I am a good driver with a clean record?

Brandon

Northeast Cobb, GA

It is not advisable to try and avoid paying the taxes due in one state on a car or try to pay less in taxes by titling a vehicle in a different state. It is considered fraud in most states if you do it in purpose in order to avoid taxes that a state requires on a car.

As for the car insurance concern, normally you need to insure and register your car in the state which you live (in your case in Northeast Cobb, GA) and the car is garaged. If your vehicle was titled and registered in FL you would be required to have FL insurance on it. Most insurance providers in Florida would be curious as to why the vehicle is garaged in GA but titled in FL and may not offer car insurance coverage since vehicle is not residing in Florida.

If a government or private employer requires a clean driving record, how many years should it have been clean? Is it one year? Do they also check the 5-year or even 10-year driving history? I have a 26 year old brother with no accidents in his driving record, except for speeding ticket two years ago. I am wondering if he should give up fire fighter dream, because they require clean driving record.

John

Lafayette, LA

A clean driving record is define as one that is free of moving violations or points and accidents. An insurance provider likes a record that is free of claims as well.

What an employer or insurance companies, etc, considers a bad driving record can differ. A simple speeding ticket for only a few miles over the limit may not affect your insurance rate or be a problem for some employers but others may want a driving history that is completely free of any type of moving infractions or accident, no matter how minor.

Your brother would need to speak to the HR personnel of the job, or in the case of being a fire fighter perhaps the training manager, to find out clarification on what exactly the company, either government, public or state employer, determines “clean driving record” to mean.

Generally, a company will want 3 to 5 years without moving infractions on the person’s record, thus a clean driving history. Many employers also prefer or require ten years with a clean driving history.