Insurance fraud is a very serious issue that can result in heavy litigation and jail time, but many drivers unknowingly engage in very light forms of fraud. Any lie when filling out a car insurance policy can be fraud, and leaving out key bits of information can be similarly problematic. You certainly don't want to lie on a car insurance application if you can avoid it; doing so can cause your car insurance policy to be effectively useless and you may not find out about this until you try to make a car insurance claim. What's more, forgetting to inform your car insurance company about major changes in your life can also constitute car insurance fraud, leading to a cancellation of your insurance policy and other potentially serious consequences.
One common example is changing your state of residence. If you decide to move and apply for residency in another state, it's imperative that you update your residency as reflected by your car insurance policy as soon as possible, preferably before you apply. This is because car insurance companies need to know your exact address and the state that you live in order to accurately estimate the cost of your insurance policy. State laws can make a big difference in the way that insurance providers do business - for instance, in the minimum requirements of different states--and different areas carry different risks of car insurance claims, theft, etc. Lying about your state of residence, even through omission, can be grounds for policy cancellation or accusations of car insurance fraud. Fraud can be punishable by fines, and an insurance company may pursue charges if you try to make a car insurance claim under false pretenses. A major omission in your insurance details (like your address) may be cause for a fraud accusation.
If you don't tell your insurance company that you're moving, they will probably find out about the change in your living situation very quickly. Some insurers will merely update your records and send you new insurance cards, but others may outright cancel your coverage. Call your insurance provider before you move and let them know. Ask about new types of car insurance that you may be legally required to buy, and find out whether your insurance rates will go up or down after the move. Listen carefully to your insurance agent's instructions. Keeping your insurance company informed is an important part of owning a policy, and if you're trying to keep your car insurance policy in good standing, it's very important to tell them about any major changes in your life - especially when you move.