Ignorance IS painful...*sigh*

[Catlady711]

I was just reading a news article tonight and remembered this thread. I thought I'd re-post it here for you guys.

http://www.philly.com/philly/business/80102327.html

24 charged with Pa. insurance fraud
By Diane Mastrull

Inquirer Staff Writer

Pennsylvania Attorney General Tom Corbett's continuing investigation into insurance fraud has resulted in another round of arrests - 24 people accused of falsely claiming to be state residents in order to obtain lower rates on their automobiles.

The practice, known as rate evasion, annually leads to $12 million to $15 million in claims on Pennsylvania policies that should not have been written, Corbett said yesterday in a statement announcing the arrests.

"That money is not coming out of the pockets of the insurance companies," Corbett spokesman Nils Frederiksen said. "It's coming out of the pockets of every other driver in Pennsylvania."

Accidents attributed to drivers posing as Pennsylvanians drive up premiums for everybody else in the state, he said.

Of the arrested, 17 live in New York and six in New Jersey. The 24th lives in Reading; her alleged crime is helping her brother, a New Yorker, obtain a false Pennsylvania address - hers.

Urban areas such as New York tend to have more accident claims and, consequently, higher rates than rural areas in nearby states.

For some, claiming a false Pennsylvania address saved $4,000 a year in premiums, said Corbett, who is seeking the Republican nomination in the 2010 governor's race.

Corbett said the arrested had provided false residency information to the state Department of Transportation to get a Pennsylvania license or vehicle registration. They then used that certification to get Pennsylvania policies, he said.

The charges resulted from a number of ongoing investigations, including one that resulted this year in the arrest of Morrisville's Michael Bozzi, operator of Bucks County Insurance. He was accused of running a scam that signed up hundreds of New York City drivers as Pennsylvanians between January 2005 and September 2006.

Each of the new defendants is charged with a felony count of insurance fraud, which is punishable by up to seven years in prison and a $15,000 fine.

Each also has been charged with misdemeanor counts of insurance fraud and filing false applications for certificate of title or registration. Each of those counts carries a maximum prison sentence of five years and a $10,000 fine.

Contact staff writer Diane Mastrull at 215-854-2466 or [email protected].

[Cataholic]

Gotta go with catlady711 on this. No offense to police officers, but they are not the people writing the contract of insurance. Your parents are obligated to tell the insurance co of all licensed drivers in the house. Rates are written off of that. You are not a household member, BUT, you are the regular, if not only, driver of that car. I imagine the insurance co does not know that the car is garaged out of state.

Cars must be registered where they are principally garaged. There are some exceptions...college kid out of state, but that is a household member.

I would not want to find out after an accident that you are not insured.

Just sayin'!

[Lady's Human]

The only legal situation I'm aware of where you can have a license from one state and have a vehicle registered in another state is if you're an active duty military member or family member of an active duty military member.

For instance, I registered my truck when purchased in NY, though my driver's license was from MA at the time. All I had to do was give them my FT Drum address and there was no problem.

According to NY state law, if you're living in the state for more than 90 days, you have to transfer your license and plates to your NY address unless you are a servicemember or college student. If you're living in NY for more than that time period and you get pulled over or have an accident, you're on your own, because legally you're driving without a registration, valid insurance and license.