Expert: Doctor Settlement - 12/18/2006

Question
Hello, my question is my sister would like to use my address to get auto insurance in CT(It's cheaper). She still would reside in NYC, Now it is not a good Idea to me So, I was wondering if you could tell me what laws are being broken so, I could let her Know, Then she would have no choice but, to drop the whole Idea.

Thanks in advance.

Answer
Hi Johnny,

You are right, and your sister is VERY WRONG.  When you try to fool the insurance company IN ANY WAY in applying for insurance, you are buying nothing but trouble.

Does she think that she is sooooo clever that no one else has ever thought of trying to defraud the insurance company?  Come on girl!!   The companies are all over this kind of thing.  And you know what----once they find out, which is usually in an accident, THEY WILL DENY HER INSURANCE COVERAGE ENTIRELY.  

Aside from breaking any laws, the worst thing is that your sister will have no insurance at all.  Once she needs insurance, the company will surely know from the accident report that she does not live with you inasmuch as the police will put down her NY address.  

Of course there is a chance that she will go thru unnoticed, but why take the chance?  This is just one of many attempts to defraud them that insurance companies are aware of and work on.

Of course any actual laws being broken is another thing all together.  You would be an accomplice, since you would not only know about it, but you would be the one who makes it happen by sending her mail on to her.  

I am going to give you the award of being the smart family member, Johnny!  You did the right thing by asking, and let's hope your sister also does the right thing and protects herself with an honest application for insurance coverage.

Best wishes,


Dr. Settlement, J.D. (Juris Doctor)
www.SettlementCentral.Com