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.