Someone Is Using Your Address to Buy Auto Insurance: What to Do

Many people want to know, “Can someone else use my address for their car insurance?” There are a number of possible issues that can arise from someone using your address for their car insurance, as it is considered “address misrepresentation” or may also be called rate evasion.

If someone is using your address to buy car insurance – you either know, or you don’t know. If you don’t know and suddenly find out someone is using your address to get cheaper auto insurance, you should notify the insurance company immediately to let an agent know that person doesn’t live at your address. 

If, however, you knowingly let someone use your address for car insurance, you could be dropped by your insurer, faced with fraud charges, and more. Read on to learn about the possible issues of someone using your address and what to do if you weren’t aware that your address was being used. 

What happens if someone else uses your address?

Since the ZIP code of your area affects car insurance rates, due to factors like crime, traffic, crashes, and more, you may be wondering, “Can someone use my address for car insurance?” If you knowingly let a friend who lives separately from you use your address to buy car insurance, there are a number of issues that can arise.

Before we dive into these issues, however, we’d like to note that there is a difference between letting someone use your address for mail and someone using your address as a garaging address on an application. 

If someone uses your address as a mailing address with your permission, this is fine. If someone uses your address as a garaging address, meaning they are saying their car is stored at your house, that is not okay. Unless this person lives with you, this is address fraud. 

Both you and your friend could have any of the following happen for using a false car insurance address: 

• Dropped insurance. An insurer may choose to drop a customer if the insurer finds out a customer has been using a fake address or letting someone else use their address. 

• Denied claims. An insurer may deny a claim if the insurer finds out about the address misrepresentation. 

• Denied coverage. Insurers may deny coverage to applicants altogether for address misuse. For example, if your friend applies using your address and the insurer realizes it, the insurance company won’t sell them coverage. 

• Increased rates. If someone used your address to get cheaper rates and the insurer finds out, the insurer may just raise rates to reflect the real address accurately. However, this is the best-case scenario and is not likely to happen in most cases. 
• Fraud charges. In some cases, fraud charges may be brought against the person who used the fake address. 

Using another address for car insurance is never a good idea. People often do it to try and save on car insurance, as rates vary based on where you live. However, the repercussions if caught can be severe for both the applicant and the person whose address is used.

Some companies are now using technology to verify garaging addresses to help uncover possible fraud. Therefore, the better (and legal) option is to shop around and take advantage of auto insurance discounts to find savings. 

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What To Do If You Weren’t Aware Someone Used Your Address 

What if you weren’t aware that someone stole your address for car insurance until a letter came to your house? If that’s the case, you should immediately contact the insurance company to let a representative know someone is using your address without your permission. 

You should also check to make sure that nothing else other than your address has been used. For example, if someone used your address to buy a car in addition to insurance, you could be dealing with a case of identity theft. 

Keep an eye out for other suspicious activity other than a stolen address and contact the authorities if you suspect a case of identity fraud. 

Unintentionally Misrepresenting Your Address

In some cases, you or someone else may unintentionally commit address misrepresentation without realizing it. It is more common than one might think. 

The most common example is if someone moved out of your house but didn’t change their address yet, you could receive some insurance letters in their name. Often, this is just a case of forgetfulness and can be quickly cleared up without any consequences.

If you have moved recently, make sure to put your insurer on the list of people to contact about your address change. This will prevent any confusion over addresses when it comes to insuring your car. 

Another case of accidental address misrepresentation is when parents let a child take a car when they go to live at another address, such as a college or university. Anytime a car is no longer stored at the original address, the owner needs to notify the insurer. 

The Bottom Line About Addresses and Car Insurance

Using another address for insurance can result in a number of issues, from being dropped by your insurance company to facing criminal charges. You should never let someone use your address to fill out an insurance application, and remember to change your address when you move. 

Shopping around for cheaper rates is a better option to save on car insurance and a legal one. Using quote comparison tools will help most drivers find a better deal on car insurance in their area, rather than resorting to using someone else’s address.

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