As we get older and take on more responsibilities, we face many obstacles that we may have never even given a second thought.  It seems as though large fees and substantial rates wait around every corner of life. Whether they be related to housing, vehicles, businesses, family, schooling, or unforeseen circumstances, bills do pile up. That being said, it’s only natural to seek out clever ways to reduce your spending. That could be with entertainment, housing, any spending form you decide, but realistically where better to try than in your monthly vehicle fees? One of the most expensive possessions in anyone’s life, personal vehicles seem like a reasonable target for penny-pinching, but beware. Cutting corners or looking for cheap or easy solutions and deals could lead to breaking any laws, which won’t help you in the long run pursuit of getting yourself a healthier wallet.

Car insurance doesn’t always seem fair, especially when one considers that their location plays a role in their insurance rate. These insurance rates change depending on which state, city, or even neighbourhood you live in and visit often. A series of averages are weighed when an insurance company gives a quote, factoring in tiny details about your own driving history, such as length of time with a licence, past accidents, the amount that you drive, etc. Insurance policies also take external factors into consideration including the average value of vehicles in your area, the average amount paid in a settlement, the average rate of car accidents in the surrounding area, and even the rates of property crime in your zip or postal code.

Furthermore, factors such as your state, province, or city may also play a role, with certain macro geographic areas being deemed more high risk, and therefore more expensive, than others. With this in mind, one may ask is ‘Can you use a different address for car insurance?

The short answer is no, it is illegal to do so and is considered insurance fraud. Although, very few legalities and policies within insurance claims are so black and white. There are certain exceptions to the rules, such as military personnel being able to register a vehicle in the area they are stationed, or vehicles being tied to secondary properties that exist outside of the owner’s home state. Most insurance companies even offer a grace period if someone moves out of state, allowing anywhere from 30-90 days to register at your new address. Another question on this topic someone may ask is ‘Can I register a car in a different state than my license?

This answer has a similar principle, the rules vary depending on the people, exceptions are applicable to those who split their time between different cities, states, or provinces, whereby a new insurance policy is needed on average if someone plans on living at a secondary home for more than 90 days. There are many circumstances to consider but for the average situation, the only time one can legally use a different address than their home address is when the vehicle is parked at a different location. In this case, the address where the car is parked is the one that gets reported to the insurance company. Generally speaking, you cannot register your vehicle at one address and insure it at another. The bottom line is that when applying for with the exception of a few specific circumstances, it is illegal to register your vehicle for insurance with an address that is not your place of residence, and purposefully doing so to get cheaper insurance rates is fraud. To further dissuade anyone from trying, lying about where you live can void your insurance should you need it, such as in the event of an accident.

These are important crucial details to keep in mind when getting your vehicle, but these are dependant based on personal and external variables, controlled and uncontrollable factors. Make sure to go over insurance policies with a professional in grave detail so you do not accidentally get into an unfortunate position with financial burden.

This article went over a very specific aspect of auto insurance that come’s up when it’s needed or become’s an issue. Insurance is still a very confusing and overwhelming thing for many people, even after already having experience with it.

Here are some first hand basics about what auto insurance aims focuses on covering:

  • Body Injury Liability
    • Injuries you, as a driver, could cause to yourself or others.
  • Medical Payments or PIP (Personal Injury Protection)
    • Compensation for injuries, or loss coverages that come from an accident/driving incident.
  • Property Damage Liability
    • Covers property damage that driver may cause
  • Collision
    • Unfortunately, car accidents and collisions are highly common. Whether it’s with another vehicle, a person, building, or tree. Collision insurance aims to cover a portion of damage done in collisions.
  • Comprehensive
    • Aims to cover a range of damage costs that come from accidents that do not involve collision. This could be a mechanical issue that led the car to spin out, or something external such as heavy weather causing damage.

For more information on insurance, visit your local car dealer or a trustworthy auto insurance company to discuss what to expect, and why.

 

Published on Holr Magazine

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