Reader’s Question:

Is it considered a car insurance fraud if someone adds a car to their car insurance policy that is registered to 2 other non-related individual in the state of Texas?

Phil

Dallas, TX

If somebody adds a car to their car insurance policy without being forthcoming about the real reason that the vehicle is being added to the car insurance policy or whom the registered owners are, it can likely permit the insurance carrier to not cover the vehicle for claims.

If you or anyone you know wants to insure a car that they do not own, and thus have no insurable interest in, they should explain that to their insurance company when trying to add the car to the insurance policy. If you are not sure if you are able to insure a car, you may ask the insurance carrier and find out instead of doing something possibly illegal. Being upfront and honest will allow you to obtain an accurate insurance quote and to be properly covered.