Cars Registered in Residing State - Who Cares?

insurance1822

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I have this happen alot where people move into my state & they don't immediately get updated driver's licenses or registrations. Sometimes my scum bag underwriters will send out requests for this info etc & threaten cancellations.

So in a perfect world where we 100% know they reside in state & don't travel out of state & simply didn't register the car yet in their new state...who cares from an insurance standpoint? How is the risk different? I understand if they're driving in another state that the insurance company could be on the hook for different PIP coverages etc.

But again in my theoretical example...what's the issue?
 
I would also imagine it has something to do with states wanting their registration fees. Time is money, and the sooner the state of MI or AL can get their money via laws, no matter how unjust, they will.
 
Speaks to the character of the insured. Some states have a law that says it has to be changed within 30 days of moving. They view it as the insured is breaking the law. Personally I don't think its a big deal, but that is the excuse I have gotten from a few underwriters
 
Fraud? It's come up as a possible red flag in every fraud class I've ever attended. How so?

Premium evasion - particularly when there are significant premium differences between the 2 states. There was a big case out of MA a few years ago where people were using work addresses in NH to save on insurance. There was another out of NM where an entire family was using grandma's address and insuring cars there rather than CA.

I agree though that in cases where there is an innocent explanation, like just not having gotten around to it yet after a big move, it should be left alone for a reasonable amount of time.
 
I have had this conversation several times recently with a few insureds that switched their insurance to Pennsylvania and used grandma's address out in the country(we are about 20 minutes from the state line NY/PA) they came back to me crying because the had no proof of address to register the car in PA so they left the NY plates on the car but cancelled the NY insurance. NY then fined them and eventually suspended their driver license for driving with no insurance. NY will not accept PA id cards and I told this girl this would happen so I hope she has fun riding the bus.
 
Carriers loose billions a year due to premium rate errors. When carriers loose everyone pays in higher premiums. In turn your retention suffers when they leave for lower rate or creates more remarketing work for you.

The honest and good pay the price for the dishonest and deceitful.

- Proves to the carrier they still have "insurable interest" in the vehicle.
- Helps prove to the carrier the vehicle is used and garaged within that state.
- Carrier compliance with that states registration and insurance laws.
- Prevents potential premium rate evasion by insured.
- Claim denial if information is discovers false or fraudulent.
 
It's understandable. If we are letting carriers judge insured's based on their credit, education, employment, etc, then why not also their ability to abide by state laws regarding licensing and registration? Certainly seems relevant enough in that context...
 
I have had this conversation several times recently with a few insureds that switched their insurance to Pennsylvania and used grandma's address out in the country(we are about 20 minutes from the state line NY/PA) they came back to me crying because the had no proof of address to register the car in PA so they left the NY plates on the car but cancelled the NY insurance. NY then fined them and eventually suspended their driver license for driving with no insurance. NY will not accept PA id cards and I told this girl this would happen so I hope she has fun riding the bus.

New York is tough. I am located in PA and I always remind people who move to PA not to cancel their NY insurance until their NY plates are returned. Hey how long does the New York suspension last for no insurance on a NY registered car?
 
Ny will let you pay a civil penalty for no insurance once every three years, 1-30 days is $8 a day 30-60 is $10 a day and 60-90 is $12 a day.

After that they will calculate how many days you need to turn your plates in for and suspend registration and license. They keep counting days until they get those plates back.

Most people get caught by the police cars with the scanners on them and get their car impounded.
 
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