Can Car Insurance Deny a Claim If the Address on the Policy Is False?

Last Updated on May 2, 2023

If you fail to report your current address to your auto insurer, there is a chance a claim you make for damages to your vehicle will be denied.  Though it is not guaranteed the insurer will deny your claim, there is a possibility you will have to foot the entirety of the repair bill on your own.  The specific action taken by your auto insurer hinges on that insurer’s individual policies and the context. Let’s take a closer look at this surprisingly common issue.

Why Your Address Matters in the Context of Auto Insurance

Can Car Insurance Deny a Claim If the Address on the Policy Is False?Auto insurance providers mandate customers to update their addresses as soon as they move.  Insurers require an immediate update to ensure the driver is paying the appropriate insurance rate for the zip code of his or her house or apartment.  It typically costs much more to insure an automobile in a busy, crime-ridden inner city than it does to insure an automobile in a comparably safe suburb. This is precisely why some auto insurers will deny the customer’s claim for damages after an accident simply because he or she failed to update the new address with the insurer.

Take a moment to consider such a situation from the auto insurer’s perspective.  The insurer cannot make money charging the same rate to all customers as many customers live in areas with comparably high levels of traffic, accidents, auto theft, etc.  If it turns out a customer had been paying significantly less for auto insurance at his or her old address in a comparably less busy part of town, why should the company have to pay for damages resulting from a claim?  However, if the customer’s new address is located in an area with low auto insurance rates, the insurer will likely approve the claim for damages. The insurer might even refund the driver to account for overpayment based on the new address.

Claims for an Accident When Not At Fault

If you fail to update your address with the insurance provider and are in an accident in which you are not at fault, there is a good chance your coverages will not be affected.  After all, you did not cause the accident, so you should not have to pay. However, the insurance company is likely to increase your auto insurance rate after the new address is reported assuming the new address is in an area with an elevated level of accidents, crime, and other risks to your vehicle.  Yet there is a good chance the insurance provider will approve your claim simply because you are the victim in this situation; you were struck by a driver who negligently operated his or her vehicle.

Claims for an Accident When You are At Fault

If you are at fault for the accident, tell the truth about your new address when contacting your insurer.  However, a contractual obligation within your policy might empower the insurer to decrease or deny payment.  This is especially likely after an accident in which you are at fault. The insurer might transmit a ROR letter, meaning reservation of rights.  This letter is likely to state the insurer is because you likely violated segments of the policy, and they have the right to deny, decrease, or disclaim coverage.

In other words, the auto insurance provider can deny your claim for damages simply because you were not wholly forthright about your address.  However, if you have a solid track record of making payments and telling the truth to the insurer, that group will likely pay the claim and issue a letter of concern.  This type of letter indicates the insurance provider will honor your claim, yet if there are any controversies moving forward, the insurer is likely to put up a fight.

Why Nothing is Likely to Happen

As long as your automobile’s VIN number and make and model match, and you pay your auto insurance premiums regularly, there is a good chance the insurer will cover your claim.  The bottom line is people change addresses at a high frequency these days. It is pretty common for people to forget to update their new address with the auto insurance provider and other service providers.  Therefore, there is a good chance the auto insurer will likely approve the claim and pay the damages in accordance with the policy after an accident. However, suppose it can be proven you intentionally used an address different from where you park your vehicle to save money (for example – you moved to the city and kept your parents’ old address in the suburbs). In that case, it is likely your auto insurance policy will be voided, your claim denied, and you might even be subjected to insurance fraud charges.

The Importance of “Territory”

Territory or location matters a great deal in the context of auto insurance. The position where the automobile is garaged, and the area where the vehicle is operated is known as its territory.  Each territory has its own unique risk level. There is no way for the insurance provider to determine if you have moved to a territory with an elevated risk.  This responsibility is yours, the consumer, to update the address if you move. The insurance company might deny your claim due to the elevated risk of your new territory. It would be impossible to stay in business if everyone who moved to an area with an elevated risk refused to report their new address. The moral of the story is to report your change of address to your auto insurer right away, even if it is to a new house or apartment in the same zip code.

James Shaffer
James Shaffer James Shaffer is a writer for and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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