Reverse Rate Evasion is a form of Insurance Fraud
Georgia is taking aim at residents who fraudulently register their vehicles or obtain auto insurance in other counties then those where the vehicle is primarily driven and parked..
The Assembly recently passed a measure that makes so-called reverse rate evasion a form of insurance fraud.
Under the practice, vehicle owners register and insure their vehicles in a county outside the Metro Atlanta area to get cheaper premiums, avoid emissions and higher taxes , even though the Fulton, Dekalb ,Cobb Area is where the insured vehicle is mostly kept and driven.
This results in the loss of state revenues and causes higher premiums for those who properly register their vehicles.
If the bill becomes law, it would make reverse rate evasion a fourth-degree crime, which means violators can be jailed for up to 18 months. Specific fines would be determined by a judge under the state’s Insurance Fraud Prevention Act, according to the text of the bill.
