What happens if you get caught lying about your address on car insurance?
Lying won't help you get your best car insurance rate, but shopping the market will. Compare quotes from Canada's top providers today and find your best rate the honest way.
Auto insurance in Canada is expensive enough. But what if you could save by giving your insurance company a different address?
In addition to your driving history and vehicle, insurers use where you live to determine how much you pay for auto insurance. Some areas, particularly the suburbs of big cities, are much more expensive than other more rural communities or smaller safer cities and towns.
By giving another address – say that of your parents or a friend – you could potentially save a lot of money on car insurance. But doing so would constitute car insurance fraud and can have severe repercussions beyond your insurance policy being cancelled.
Key takeaways
- Lying about your address on an insurance application constitutes fraud.
- If caught, your insurance policy could be cancelled, claims could be denied, and you may have difficulty finding insurance again.
- In more serious cases of insurance fraud, charges can be laid, and you can face up to 14 years in prison.
- Your address is just one of many things that affect your insurance rates. Comparing quotes is the best way to save money on car insurance
Why does my address affect how much I pay for car insurance?
Car insurance companies weigh hundreds of factors when calculating your auto policy rate. In addition to your driving experience, insurance history, and the car you own - believe it or not your home address (i.e. location) plays a significant role in determining your premium.
There are many reasons why location affects the cost of car insurance in Canada. These include the frequency and severity of collisions, the prevalence of auto theft and vandalism, and even variations in the cost of repairing or replacing your vehicle.
According to auto insurance pricing analysis done by Ratehub, the areas that pay the most for insurance are major urban centres. In Ontario, the highest prices for car insurance are in Toronto and its largest immediate neighbours (i.e the GTA).
Is lying about my address on car insurance illegal in Canada?
Yes, lying about your address on your car insurance in Canada is illegal.
According to Aviva Canada, policy misrepresentation, such as omitting key information like your true address, is a growing concern in the Canadian market. Their data shows auto-related incidents made up 67% of all claim fraud investigations in the past year, making it a top trend to look out for throughout 2025.
Each province in Canada has its own Insurance Act or equivalent legislation. These Acts typically contain provisions that make it illegal to lie or fail to disclose material facts on insurance applications.
The Criminal Code of Canada also makes it an offence to commit fraud, which has been defined as using deceit or other dishonest methods to trick someone in order to gain something of value. The Supreme Court of Canada has clarified that the risk of someone losing money alone is enough to constitute fraud.
What are the consequences of lying about my address?
Lying about your address for insurance purposes could lead to any number of consequences, including:
- Cancellation of your policy;
- Denial of your claim(s); and
- Difficulty getting insurance in the future.
The most common and straightforward consequence for falsifying your address is that your insurance provider will cancel your policy, which will make it difficult to find affordable auto insurance in the near future.
Another, more severe consequence is that your car insurance claim could be denied, leaving you on the hook for the cost of repairs, property damage, and medical expenses. Even if a claim has been paid out, your insurer can sue you to recover what they’ve paid if they later discover a material misrepresentation.
You could also have difficulty getting car insurance in the future. While there’s no central database for insurance fraud in Canada, insurance companies share information about policy cancellations, and your applications could be declined depending on the severity. You may need to go to the facility market to find coverage, while you rehab your record.
In severe cases, you could be charged with fraud. While it’s unlikely you’ll face criminal charges for simply falsifying your address, it could be considered in a fraud case. Fraud under $5,000 carries a maximum penalty of up to two years in prison. Fraud over $5,000 carries a maximum penalty of up to 14 years in prison. If convicted, you’ll also have a criminal record, which can hamper your ability to get employment and travel.
Also read: The consequences of lying to your insurance company
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How do auto insurers detect address fraud?
There are a number of ways your insurance company will verify your address and look for evidence you’ve given them the wrong information.
The first and most simple way your insurer will verify your address is by comparing your application with the details on your vehicle registration and driver’s license. If there’s a mismatch, that’s the first red flag that could lead to a more thorough investigation. Insurance companies can also obtain your current and past addresses using data pulled from credit bureaus during underwriting.
Insurers also mail important documents, including your proof of insurance certificates, to the address listed on the file. Your failure to produce the original documents could indicate that you’ve given a fraudulent address.
Many insurance companies use telematics devices, which share your actual driving habits with the insurer. If your telematics device reveals that you rarely drive near your given address or you frequently park overnight at a different location, your insurer could begin a more thorough investigation. Keep in mind, drivers must opt-into a telematics program as part of a usage-based insurance offering - they do this to earn potential discounted rates.
Other devices in your vehicle can also give you away. Traffic cameras, police automated license plate readers, and toll collection systems can be used to build a case against you. In severe cases, the insurance company may also be able to obtain location history data from your cell phone to prove you’ve lied about your address.
Insurance companies are increasingly using AI to detect address fraud. Your insurer’s systems may raise a red flag if your other details don’t match up with your postal code.
Additionally, insurance companies often conduct investigations when processing claims. Even if your misrepresentation goes undetected during the underwriting process, it could be detected at the time you make a claim.
What if I have more than one address?
Sometimes, you may have more than one address, such as if you own two homes or are living away from home to attend school.
To avoid being accused of misrepresenting your address, ask your insurance broker or agent which address should be used on the policy. They have a fiduciary responsibility to give you accurate information and advice, and being upfront about your situation will help to prevent any costly misunderstandings.
What can I do to secure cheap car insurance?
Every car insurance company uses a different rate group when it comes to your address that it uses to determine your premium. For that reason, the best way to save on car insurance is to compare auto insurance quotes online. No matter if you are a first time buyer or shopping your policy renewal, comparing can help you save.
Just because your location is causing your rates to be higher with one insurer doesn’t mean that another will see it the same way. You can potentially save hundreds of dollars per year by comparing quotes from multiple insurance providers. You can also bundle your home and auto insurance policies for additional cost savings.
The bottom line
Lying about your address to save on auto insurance might seem like a harmless shortcut, but it’s a form of car insurance fraud with serious consequences. From policy cancellations to denied claims—and even potential criminal charges—the risks far outweigh the savings. If you're looking to lower your premium, your best bet is to shop around and compare quotes the honest way.