Address misrepresentation is when an insured person uses an incorrect home address, often so they can obtain lower auto insurance premiums. This is a type of insurance fraud which contributes to costing Canadians 2 billion dollars annually.
With the strong real estate market continuing across Canada and right here in Windsor – Essex, insurance companies are reporting an increase of cases of address misrepresentation.
The fraud aspect of address misrepresentation also applies to young drivers who are still under their parent’s policy, but they do not live at the same address as their parents and the child acts as the primary driver of the vehicle.
Whether with intent, or due to forgetfulness, this type of auto insurance rate evasion has many potential consequences, including:
- Invalidated coverage
- Cancelled policy
- Future higher premiums
- Denial of future coverage
- Claims denied
Committing address fraud to save money on auto insurance premiums may result in significant future financial consequences. One way to look at it is, “pay fairly now, or a whole lot more later”!