Fake Address for Cheap Car Insurance

If you're thinking about using a fake address for cheap insurance, don't. It is illegal to use a fake address to score lower auto insurance rates and is considered insurance fraud. Learn more about the repercussions of using a fake address here.

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UPDATED: Jun 16, 2022

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Written By: Laura BerryReviewed By: Joel OhmanUPDATED: Jun 16, 2022Fact Checked

Here's what you need to know...

  • It is illegal to use a fake address on your car insurance application, as insurers consider location when setting rates
  • If your insurance company discovers the truth, you could face costly consequences
  • There are several good reasons insurance companies consider location when setting rates

Insurance companies consider several factors when setting auto insurance rates, one of which is location. This is because vehicles in some locations have a higher risk of sustaining damage than others.

Knowing this, you may be tempted to use a fake address to obtain cheaper auto insurance rates. However, know that doing so is not only wrong, it is a form of insurance fraud and, therefore, illegal. 

If you’re searching for affordable car insurance, try entering your ZIP code into our free online quote tool today.

Can you use a fake address to get cheaper car insurance rates?

In short, the answer to whether you can use a fake address to score lower car insurance rates is no. 

Among several other factors — including your driving history, the make, model, and age of your vehicle, and vehicle use — one factor to which insurance companies give considerable weight is your location. Deliberately giving the wrong address is breaking the law.

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Why do insurers care what address you use?

When it comes to what affects auto insurance rates, location plays a substantial role. For starters, insurers consider where you plan to store your vehicle when it’s not in use. Do you plan to store it in a secured garage or park it on a public street?

People who have enclosed garages to keep their vehicles are likely to score lower rates than individuals whose only option is street parking. The rationale is that vehicles in garages have little to no risk of sustaining damage from falling objects, weather-related events, other vehicles, or criminals. Cars parked out in the open, however, are subject to all these dangers and then some.

Additionally, insurers consider the crime and accident rates in your location. Are rates of theft and vandalism high? What about car accident statistics? If they are higher, your auto insurance rates will likely increase.

Finally, auto insurance companies consider environmental factors. Is your region prone to flooding, hail storms, or heavy winds? Though you cannot control Mother Nature, insurers certainly account for it and the devastation it may cause.

Your Work Location Matters, Too

If you use your vehicle for commuting purposes, your auto insurance company may also ask you to provide the address of your job. As with your home location, the insurer will consider the parking situation at your place of work, crime rates, accident rates along your commute route, and environmental factors to determine your risk and rates.

What happens if your insurer finds out you used a fake address?

There are several consequences to using a fake address on your car insurance application, ranging from claims denial to criminal charges.

Your Insurance Company Will Send Your Documents to the Wrong Address

The most minor consequence of using a fake address on your insurance application is that you will never receive your insurance documents. These documents include your insurance cards, which serve as your proof of insurance. 

While this outcome is of little consequence to people these days, as most drivers today can download their policies at any time from any mobile device, you do run the risk that your personal information will fall into the wrong hands.

The Insurance Company Can Cancel Your Policy

If your insurance company finds out that you used a fake address on your application, it can cancel your policy at any time and without giving you notice. If one insurer terminates your policy on the grounds of fraud, you may find that other insurers will refuse to cover you as well.

Your Insurance Company Can Deny Your Claim

An insurance policy is a binding contract. Just as with any other type of contract, the contract is only as legitimate as the information it contains. If you falsify any information in this contract, the agreement becomes void.

If, after you file a claim, your insurer finds out you falsified your address, it can use the fake address as grounds to terminate the contract on the spot and refuse to pay your claim. You have no grounds to protest, as you knowingly lied on your application.

You May Face a Lawsuit

Say your insurance company does not discover that you falsified your address and pays out your claim. Later, however, the company does find out that you do not live where you say you do and that you never did. It can demand repayment of the benefits it paid you. 

If you refuse or cannot repay the benefits, your insurer may sue you to recover the amount you recovered via fraudulent means.

You May Face Criminal Charges

In the worst-case scenario, you could face criminal charges of insurance fraud. Though it is unlikely that your insurer will press charges, the Federal Bureau of Investigation can and does prosecute individuals for auto insurance fraud. This is an attempt to crack down on the pervasive problem, which costs insurance companies between $5.6 billion and $7 billion in losses each year. 

If convicted of insurance fraud, you face hefty fines and possibly jail time.

How can you legally save money on car insurance?

There are many proven ways in which you can score low insurance rates without committing fraud by giving a false address:

  • Look for car insurance discounts
  • Improve your credit score
  • Improve your driving record
  • Choose a higher deductible
  • Look for safe driver discounts and devices
  • Invest in a safer car with low mileage

Though it may take time to do some of the things on this list, each of these factors is under your control and legal.

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Look for Cheap Car Insurance the Legal Way

If you’re not satisfied with your current auto insurance rates, do your homework, shop around, and change the factors you can control. Refrain, however, from using a fake address, as it will end up costing you more in the long run when your insurance company discovers the truth.

To read about what happens when someone else uses your address for their car insurance, consider reading our article here. Enter your ZIP code into our free quote tool today to start comparing multiple auto insurance quotes.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Written by Laura Berry
Former Insurance Agent Laura Berry

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

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