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When it comes to your insurance, accuracy is critical. One area where some people bend the truth, sometimes without realizing the consequences, is with their address. Misrepresenting where you live to lower your auto or home insurance premiums may seem like a harmless shortcut, but in reality, it’s a serious form of fraud with long-lasting financial consequences.

What Is Address Misrepresentation?

Address misrepresentation occurs when someone provides a false or misleading address to their insurance company. For example, they might use the address of a parent, relative, or friend instead of their actual residence. The goal is usually to reduce insurance premiums by appearing to live in a lower-risk neighbourhood.

Where Does This Happen Most?

This type of fraud is most common in urban areas where insurance premiums can vary widely by postal code. Major cities, such as Toronto, or other urban centres, often see higher premiums compared to smaller towns or rural communities. By claiming they live outside the city, some drivers attempt to cut costs.

Who Commits Address Misrepresentation and Why?

Typically, drivers who are:

• Young (and facing higher rates due to lack of experience).
• Urban dwellers (living in higher-risk postal codes).
• Households with multiple drivers (trying to list their car under a lower-risk household).
• The motivation is almost always financial—wanting to pay less for coverage.

Unintentional or Not - It’s Still Fraudulent

Sometimes, address misrepresentation is deliberate, but not always. A parent might add their child to their policy at the family home even though the child primarily lives away at school. In other cases, people genuinely don’t understand that their insurance must reflect their primary residence, where the car is usually kept. Regardless of intent, it is still considered fraud.

What Happens If It’s Discovered?

Insurance companies take fraud very seriously. If address misrepresentation is uncovered:

• Claims may be denied.
• Policies can be cancelled.
• Future premiums may rise significantly.
• Legal consequences may follow if the misrepresentation is proven deliberate.
• Most importantly, you could be left uninsured when you need protection the most.

The Bottom Line

Providing accurate information to your insurance company is not just about following the rules; it’s about ensuring you’re protected. Saving a few dollars a month isn’t worth the risk of being denied coverage or facing fraud charges. If you’ve moved, changed your primary residence, or aren’t sure how to list your address, talk to your insurance professional.

Ensure you’re properly protected. If you’ve moved recently or aren’t sure how your address affects your coverage, connect with your insurance professional today.