This conversation between two insurance professionals provides a thorough overview of the tactics used by individuals to evade auto insurance rates. They explain how rate evasion, also referred to as "premium leakage," can be achieved through intentional misrepresentation or even accidental omissions in insurance applications. The conversation highlights the significant financial consequences of this fraudulent activity for the insurance industry and discusses various legal ramifications, including the potential for policy voiding. The conversation also explores the nuances of state laws and the role of investigative techniques, such as reviewing application details, conducting neighborhood canvassing, and analyzing social media profiles, in identifying and addressing rate evasion.
