You cannot keep an auto insurance policy with a different address. This could be considered insurance fraud. There are many different situations where you may need to keep your car in another place while it is insured at another address. For example, if you are in college and the car is insured at your home address and not your dorm. This can lead to major problems if you do not notify the insurance company where the car is being held. If you are living at one place, and your car is insured at another place, make sure you take care of it immediately. While you may not be prosecuted for this offense, the insurance company may not pay any claims if they find out the information you gave them is false.
You may think that having your car insured in another city or state will save you money. In the short run, this may be true, as car insurance rates are based on zip codes and the location the car is kept. However, in the long run, when you need to file a claim, this could end up costing you big time. The car insurance that you have been paying for at a different address will not cover the costs that you may encounter. Once the insurance company finds out that the policy is under a different address they have the right to decline any claims that are made.
It is always best to be safe, rather than sorry. If you move to another town, you need to notify your insurance company immediately. If the rates seem to increase dramatically you always have other options that will keep you legal. For instance, you could compare other companies in the area and see if they could offer you a better rate. Getting a new company is better than cheating the one you already are with.
While it may seem to save you hundreds of dollars a year if you do not change the address on your car insurance policy, it is not a good idea. Furthermore, it is illegal. So, if you are moving, or you do not have the right address on your policy, it is highly recommended that you fix the problem before it cost you.