You may know someone who hasn’t changed their insurance address because changing it could increase their premium. Is it worth the risk?
The short answer is no! Your licence and Ontario auto insurance should be at the same address (the real one you live at for the duration of the policy). If they don’t match you put yourself in a potentially compromising situation.
Our experts share why having the correct address on your policy is crucial and the risks if you lie to your insurance provider about your address.
Using an incorrect address on your insurance application, often to get lower premiums, is considered address misrepresentation.
Address misrepresentation on applications is increasing. Aviva Canada reported a significant rise in claims with incorrect addresses between 2019-2020 and 2020-2021. Location significantly impacts insurance rates when you get a quote, making the temptation to misrepresent your address understandable but it's illegal.
Committing fraud can lead to serious consequences, such as having your policy invalidated or cancelled, paying higher premiums in the future, being denied future coverage, and facing claim denials. Additionally, attempting to file a car insurance claim using a false address could result in further legal action, which may include criminal charges and jail time. Don't take the risk—always provide your accurate address.
Whether your car insurance address can differ from your home address depends on various factors and is governed by your insurer's policies and local regulations. Situations in which a different address might be acceptable include:
Situations where a different address is likely unacceptable (and potentially fraudulent):
Using someone else's address for your coverage is generally unacceptable and is considered misrepresentation. This can lead to serious consequences, including policy cancellation, claim denial, and difficulty obtaining future policies at reasonable rates.
Even if you have the homeowner's permission, it's still considered a contract violation. Insurance companies view this as a breach of trust and will likely impose penalties.
The only exception is if the vehicle owner is also listed on the policy and explicitly permits you to use their address. Even then, the owner must inform the provider. In all other cases, using a different address is strongly discouraged and risks significant financial and legal repercussions. Always use your own accurate address on your insurance application.
The consequences of using a fake address on your car insurance application are serious and can have long-lasting effects. These consequences range from financial penalties to legal repercussions:
Using your address for someone else's insurance can negatively impact your own rates, even if you're not directly involved. Companies often check household claims history when assessing risk. If the person using your address has a history of claims, it could lead to higher premiums for you. This is in addition to the fraudulent nature of the act itself.
If you suspect someone is using your address for their Ontario car insurance, contact the provider immediately. Even if it's a mistake, reporting it promptly is crucial to protect yourself from potential problems associated with fraudulent insurance activity.
A driver's license address does not have to match the vehicle registration address. Many people own multiple properties, such as a summer cottage and a primary home, so it's normal for these addresses to differ.
Your car insurance address can differ from your home address, as there are no laws requiring them to match. For example, if you own a vehicle but your child is the primary driver living away at university, the addresses may not align.
To see if you can use a different address, contact your provider and explain your situation honestly. They will provide guidance and may require documentation. An incorrect address can invalidate your policy, leaving you uninsured and liable for damages. It's important to be transparent with your insurer to avoid potentially serious consequences.
Categories | Industry NewsAuto |
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Tags | FAQsTips and AdviceDriving TipsLicenceAuto Coverage |
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