Is It Ethical?

[Moishebatchy]

In my defense I assumed he was referring to health insurance (in hindsight I'm not sure why) and while you may be right from a strictly ethical point of you I could see the likelihood of recurrence as being an important factor in the decision.

+1

Car insurance is a whole 'nother story

[yuneeq]

Remind me of a story.

Guy from Brooklyn I know owned a Ferrari. Lives the summers in Deal. Registered car in NJ to save on insurance. Guy totals said $300,000 Ferrari. Guy makes claim on Insurance.

Insurance investigates. Insurance offers guy two options:

1) We'll pay you the $300,000 and report you for insurance fraud, risking a decade or so in Rikers; or
2) Eat the loss.

He ate it.

In his defense, most of these people that have extremely luxurious cars, use their cars specifically in Deal while on summer vacation and barely, if ever, drive such cars in Brooklyn. If that was the reality in his case, would it still constitute fraud?

[AJK]

+1, putting down your summer home / second home and getting paid after they find out. You would think the agent/insurer has some obligation to find out where your primary residence is.

I find that HIGHLY unlikely, but I can't argue with your experience. Insurance companies aren't in the business of paying out claims; they're in the business of making $. And if they see even a keyhole worth of room to deny a claim, they'll drive a truck through it.

In his defense, most of these people that have extremely luxurious cars, use their cars specifically in Deal while on summer vacation and barely, if ever, drive such cars in Brooklyn. If that was the reality in his case, would it still constitute fraud?

I imagine that as not the case, else he wouldn't have ate the $300k.

[meshugener]

In his defense, most of these people that have extremely luxurious cars, use their cars specifically in Deal while on summer vacation and barely, if ever, drive such cars in Brooklyn. If that was the reality in his case, would it still constitute fraud?

Why not?
They don't ask for the car's primary residence.

[skyguy918]

I find that HIGHLY unlikely, but I can't argue with your experience. Insurance companies aren't in the business of paying out claims; they're in the business of making $. And if they see even a keyhole worth of room to deny a claim, they'll drive a truck through it.

While as a rule this might be true, you really have to know how the insurers deal with the specific issue at hand. For example, many brokers will tell you not to list your kids on the insurance for as long as possible. They'll say that if there is an accident, the insurer will pay out the claim and just require you to put the kid on going forward (at which point you'll really be paying a lot because it'll be a young operator with a bad record). They will almost never deny the claim or try to back bill you.

[CountValentine]

(at which point you'll really be paying a lot because it'll be a young operator with a bad record)

Then buy a junker for a couple hundred bucks and insure them on that car. 

[AJK]

Then buy a junker for a couple hundred bucks and insure them on that car. 

Won't help for liability, which is often the biggest portion of a premium.

[CountValentine]

Won't help for liability, which is often the biggest portion of a premium.

I thought collision for kids. Also you can get the minimum on that car.

[AJK]

I thought collision for kids. Also you can get the minimum on that car.

Not following.

[CountValentine]

Not following.

In our state collision and liability are separate. I thought the collision part was higher for kids than the liability part. Collision is not required but liability is. You can get very low amounts on liability since the car will not be driven anyway.

[AJK]

In our state collision and liability are separate. I thought the collision part was higher for kids than the liability part. Collision is not required but liability is. You can get very low amounts on liability since the car will not be driven anyway.

Never heard of a state where liability and collision are NOT separate.

Both L and C would be higher, but L would be even higher than C.

Right.

You may be ABLE to get low amounts, but if if there is ever an accident by that child with that car with that low coverage, and the victim can and will go after the one at fault (or his policy holder) personally.

[CountValentine]

I was not sure how no fault states work so I worded that way. I thought C was higher than L for kids but it looks like I am wrong. When you do this with a junker you make sure the car is never driven.

[AJK]

Even in no fault states, there are instances where the victim can sue to the one at fault. And it's precisly instances like that where a low ball coverage amount will end up making someone's day/life verrry unpleasant.

Unless of course the defendant is judgment-proof.

[george]

Why not?
They don't ask for the car's primary residence.

-1
This may be state specific, but in at least two states I know firsthand that they go by "where the car is parked for the majority of the year", not where your primary residence is. You can have your primary residence in State A, but if car is parked in State B for more than half the year, you must purchase insurance in  State B for that car.

[skyguy918]

Then buy a junker for a couple hundred bucks and insure them on that car. 

Mostly +1 to AJK's series of responses. I'm pretty sure the majority of the increase in premium is going to be the liability part. Assuming the kid isn't listed as primary on any of the cars on the policy, I don't think adding them will change the collision or comprehensive much if at all.

[CountValentine]

Mostly +1 to AJK's series of responses. I'm pretty sure the majority of the increase in premium is going to be the liability part. Assuming the kid isn't listed as primary on any of the cars on the policy, I don't think adding them will change the collision or comprehensive much if at all.

Mandatory in my state for L is 40/20/15. For a teenager this is less than $100. Collision and comprehension is not required. You also need to consider plates and sticker fees.

[Hirshthg]

3 Browser method?

[meshugener]

Depends on what you're using it for.

[CountValentine]

3 Browser method?

It is done to take an advantage of a flaw in the system. I will go with no.

[meshugener]

Banks are well aware of it, they have the option to block it (see Citi/Barclays) and they don't.
Their problem.