Do Auto Insurance Companies Check your Address?

There are ways car insurance companies can check your address and they request proof in the form of utility bills or mortgage statements if they cannot verify it independently. The garaging address you have given to your insurer must match with your actual residential address as people naturally keep their cars at their home. Your zip code is a very significant factor in premium calculations and if people choose to give a false address to get cheaper rates, companies stand to lose premium income. That is why they have measures and checks in place to make sure they price the risks properly.

According to a recent survey, vehicles stay at home 95% of the time and when they are out 5% of the time, they don’t really go far. So, people mostly keep their automobiles and drive around their neighborhood. So, vandalism, auto-theft, congestion, other crimes, auto repair costs, weather conditions and state insurance rules are some of the factors considered and included in a zip code rating. If it is a high-risk zip code, you get charged higher vehicle insurance rates for just living there. In other words, your zip code does increase or decrease the chance of suffering an insured loss and size of claim payments.

Auto insurance companies can check where you live and even investigate after you have a claim and deny it if they find you have been lying about your real residence as it is a material misrepresentation. Your vehicles are normally garaged at where you live so they must be registered and insured at that address and not somewhere else or your parents’ home you permanently left ages ago.

Your zip code is so important in premium calculations that nearly all automobile insurance quote forms start with your zip code. First of all, it tells the companies which state insurance rules and minimum requirements applicable to you. Secondly, the premiums are significantly different from one state to another and from cities to sleepy towns. For example, you may have twice higher rates if you live in New York instead of Connecticut.

Deliberately lying about a fact in your application so that you can gain financially is a fraud. When people lie about their residence in order to get cheap auto insurance rates, companies lose revenue and it is an insurance fraud. People get prosecuted with felony criminal charges for it. Some carriers may want to press charges against such people.

The thing with your residence is that it is really hard to hide where you actually live and fake a different location. Your address is part of your records and shows up everywhere like tax, voting, employment, credit card and bank statements. If a claims adjuster was to look into it, it won’t take long for them to find out where your home is.

Most policyholders wouldn’t be asked to verify their address because companies can actually check them independently. Credit history is one of the reports auto insurance providers pull and it shows your address, including how long you have been living there because it is tied to every credit facility you arrange and have.

If you have just moved to your new home and your insurer cannot verify it through the reports they pull because it won’t show on the records yet, they usually ask for a confirmation. They accept a recent paystub, tax return, utility bill or mortgage statement as a proof. If anyone is tempted to fake their address for car insurance, they should think long and hard. Paying the additional premium and telling the truth make sure you can claim without a worry when you really suffer a loss and it can be big.

Not only do auto insurers check policyholders’ addresses but also they verify many details independently like accidents and traffic tickets through Motor Vehicle Records. So, it is always best to provide accurate details to avoid any troubles in the future with claims.