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  1. #1
    Join Date
    Jun 2011
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    14

    Default Car Insurance Rate Evasion

    My question involves insurance law for the state of:

    Car Insurance Rate Evasion!! What is it? What are its consequences? Say if I was to be living in NYC all year 'round and have my car registered and insured in Florida, what would be some of the consequences that I would expect to face? Would I be arrested for this? Would I have to pay fines for this? Would both states NY and FL come after me on fraud charges if they were to find out?

  2. #2
    Join Date
    Sep 2011
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    OH10
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    14,700

    Default Re: Car Insurance Rate Evasion What is It What Are Its Consequences

    They could potentially claim you obtained the insurance under fraudulent pretenses and not allow you to benefit from possession of the policy. IE.. Here is the $1000 you paid for your policy back. Sorry about your luck. Hope you find another way to pay for that accident you had.

  3. #3
    Join Date
    Sep 2005
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    Default Re: Car Insurance Rate Evasion What is It What Are Its Consequences

    If you are found by the police to be driving without valid insurance, you can be cited for driving without valid insurance. It's unlikely that your insurance company would try to have you criminally charged if they detect the fraud, as opposed to focusing on the money, but nobody here can promise you that it can't happen.

    If your insurance company investigates your situation and finds that you have committed fraud and owe them additional money, you can expect at a minimum that they'll bill you for the additional money you owe.

    If you make a claim and your insurance company finds, after its investigation, that you have committed fraud in order to avoid paying full premiums, depending upon the full facts and size of the claim, you can anticipate that they'll deny the claim or deduct the additional premiums you owe from the claim (billing you for any additional amounts owed); they may rescind your policy (paying you back your undersized premiums), revoke your policy (telling you that as of the date of revocation you need a different insurance company), or indicate that they will revoke the policy if you fail to pay your balance due.

    Lots of possibilities.

  4. #4
    Join Date
    Jan 2010
    Posts
    7

    Default Re: Car Insurance Rate Evasion What is It What Are Its Consequences

    Mr. Knowitall, may I shine some light on this?

    The general rule is this: When you move to another state such as from New York to Florida, in Florida you are obligated to surrender your out of state driver license and tags for Florida tags and a Florida driver license in 30 days. Same thing when you move from Florida to another state.

    When you change your license and registration to your new home state, you must also transfer your auto insurance policy to meet your new home state's requirements. A major possibility for failing to do so is that - for example - let's say you are from Illinois and you are not military; you move to Florida to get that job you wanted. You settle in Florida with your new job and put your children in public school; however, you do not change your Illinois plates to Florida plates nor convert your Illinois auto insurance to meet Florida's requirements. One morning on your way to work in Florida you get into an accident. When you file a claim with your insurance company due to the accident somehow the insurance company gets very suspicious and conducts their own investigation. As a result of the insurance company's investigation, the insurance company denies the claim due to the fact that you took up legal residence in Florida as opposed to visiting Florida. Additionally, your Illinois auto insurer can also revoke your auto policy because insurance premiums differ from state to state.

    Of course if you are just visiting then your out of state auto insurance will work.

    I agree with Adsan1280's situation about registering the vehicle in Florida even though he lives in New York. Based on my research of why people do not change their driver license and registration as well as their insurance to their new home state (here in Florida this happens frequently), it is because once you cross a state line it makes an impact in your auto insurance premiums. From what I understand, auto insurance premiums in New York - especially New York City - are much higher than in Florida; the high auto insurance rates is probably why New Yorkers keep their Florida plates on their vehicles.

    Hopefully this should shine some light on auto insurance when you move to a different state. You could save money by keeping your auto insurance in your former home state if it's lower as well as keeping your license and registration from your former home state too. However, there is no financial savings realized if one gets caught in a crackdown of out of state motorists who have taken up residence as opposed to just visiting. In Florida, not changing over your out of state license and registration to a Florida license and registration when you are supposed to is a misdemeanor offense (see Florida Statutes sections 320.38 and 322.031).

  5. #5
    Join Date
    Jun 2011
    Posts
    14

    Default Re: Car Insurance Rate Evasion What is It What Are Its Consequences

    I guess what I am asking is if there is any legal implications such as fines or jail as a result of committing auto insurance rate evasion. If I don't live in Florida at all for the 12 months of the year and have a full time job in New York, My son goes to school in New York. The Florida home is where we go to when on vacation but that is it - we don't live there at all throughout the year. If someone was to report me to the authorities would I be in big trouble? I have been reading online that such is possible, but I just wondering if anyone here has experienced or witnessed this before.

    Would this have any effect on my medical license? Can it be revoked if I was to be arrested for it and found guilty?

  6. #6
    Join Date
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    Default Re: Car Insurance Rate Evasion What is It What Are Its Consequences

    If you are convicted of a crime, that can make it more difficult to get a professional license.

  7. #7
    Join Date
    Jun 2011
    Posts
    14

    Default Re: Car Insurance Rate Evasion What is It What Are Its Consequences

    Can my current Medical License be revoked if i was convicted of a crime?

  8. #8
    Join Date
    Sep 2005
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    Default Re: Car Insurance Rate Evasion What is It What Are Its Consequences

    I expect that you can learn that from the licensing agency, or from information on its website.

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