Registering a car out-of-State to Save on Insurance

Published on 7/16/2011
Updated on 2/11/2025

New York City residents typically pay higher car insurance rates than motorists in the rest of the state. The increased rates are due to several reasons, including the higher accident rate and theft rate in New York City. For this reason, NYC residents often register their car at an out-of-city or out-of-state address in order to avoid paying higher insurance rates.

The savings in insurance premiums can be shortsighted for a few reasons. Firstly, you run the risk of your insurance company disclaiming coverage. If there is a big accident and the insurance company has to make a big payout, they will investigate when they notice something amiss. If it turns out the insured is not living where they claimed to be living at the time of the application, the insurance company has the right to refuse to pay out and you will be personally liable for any claims. Something else they may do, albeit more harmless, is to pay the claim but then refuse to renew coverage.

Besides the risk of loss of coverage, there is criminal liability. Lying on an insurance application to obtain cheaper insurance is technically insurance fraud. Admittedly, this type of activity is not at the top of the to-do list for prosecutors and police officers. However, it can come back to haunt you when you have other problems with the law, and this is added to the top when you are investigated.

Pennsylvania is one such state that New Yorkers often use an address for insurance purposes. But the state has a dedicated Pennsylvania Insurance Fraud Prevention Authority that brings criminal charges against 5 to 10 people a year for falsely claiming to live in PA for insurance purposes.

At the end of the day, giving false information on your insurance application is probably not worth the risk. To avoid high insurance rates, try to keep your driving record clean. Fight all traffic charges.

The Benjamin Goldman Law Office is a New York State traffic ticket law firm. Our firm is dedicated to traffic ticket defense. Our many five-star reviews are a testament to the efforts we put into our client’s cases. The Benjamin Goldman Law Office handles cases throughout the state, from The Bronx to Buffalo. We handle all types of traffic related charges, from DWAI to Speeding. Our firm provides all motorists with a free consultation and you can contact us at your convenience.

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