Trying to save on your car insurance premiums in New Jersey by lying about where you drive and garage your vehicle can now send you to prison and cost you a big fine.
New Jersey Gov. Chris Christie signed legislation this month making it a crime for drivers to falsely register vehicles in other states.
Evading auto premiums is a growing problem in New Jersey. Drivers in the state have the highest auto premiums in the U.S. at an average of $1,219 annually, so some dishonest New Jersey drivers try to avoid these high premiums by telling their auto insurer that they garage and drive their vehicle in locales with lower premiums.
Premium evaders often use neighboring Pennsylvania as a destination state.
[Related: Auto insurance fraud is about to become a crime in New Jersey]
New Jersey drivers convicted of insurance fraud under the new law could face up to 10 years in state prison and up to $150,000 in fines.
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