Will my car insurance rate go up if I move? Depending on the location you moved to, your auto policy rate could go up. Location is a huge factor that insurers use in setting car insurance rates. Even a short move in-state could result in an increase in premiums if the move makes the commute longer.
Remember that every state has its own requirements. When you tell your insurance provider about the move, they will have to cancel the old policy. And draft a new law that abides by the new state coverage requirement. These requirements may be very different from the old ones, resulting in higher rates. Read on to learn more about how moving to a new location may affect your car insurance rates.
How Does your Location Affect Car Insurance Rates?
Insurance companies consider the severity, frequency, or cost of a claim based on location. And assign a level of risk based on the individual address in most states. Presently, Michigan and California are the only states in the USA that do not allow zip codes to determine auto policy premiums. Below are some of the location factors that are likely to affect the policy rates.
- Vandalism reports
- Numbers of cars stolen
- Claims of property stolen out of a vehicle
- Fraudulent injury claims
Moving to another location can cause your rates to go up or down. And according to research, metropolitan areas tend to be higher than rural areas. The reason is that the basic principle applies: the denser an area, the greater the number of vehicles, and busy highways mean a huge chance of getting into an accident.
When should I inform my auto insurance company about my move?
Once you have your new address, it is advisable to call the insurer as soon as possible. Even if your deadline is tight, this should be your first step. So that they can give you new quotes and inform you about the rate adjustments. While moving is the perfect time to get quotes for auto coverage, you can switch companies anytime.
How to Inform your Car Insurer that you’ve moved
When you move, you will need to update your car insurance with your new address. Here’s how to do it and possibly save money in the process:
- Notify Your Insurer: Call your current auto insurance company or agent as soon as possible to let them know you’ve moved from the old location. You will adjust your rates based on the risk factors and regulations of your new location, which could lead to increasing or reducing your rates.
- Understand your new location requirements: Check the auto insurance requirements of the new location you are moving to. If you’re moving within the same state, your coverage requirements might not change much. However, if you’re moving to a different state, you might need different coverage. This may include underinsured or uninsured motorist or PIP coverage.
- Compare Rates: Even if your current insurer offers coverage in your new area, it’s advisable to shop around. Request quotes from multiple insurance companies to compare rates and find the most affordable deal.
- Choose a New Policy: Once you find the best policy that suits your needs, sign up and make your first payment.
- Cancel Old Policy: If you switch to a new insurance company, you will have to cancel your old policy on the same day or right after your new policy starts to avoid coverage lapses. If you’ve prepaid, you might get a refund for the unused portion. However, you need to keep in mind that there could be a cancellation fee.
With the help of the above steps, you can ensure your auto policy is up-to-date and potentially save some money.
Do I need a New Policy if I move in-state?
No, you don’t need a new car policy if you move within the same state. However, it’s a good chance to compare quotes and make sure that you get the best rate. Ensure that you inform your insurer about your new address so they can update their records. This will keep your policy active and accurate. Updating your address when you moved within the same state is essential in order to avoid incorrect rates or even cancellation.
Do I need to change my Car Insurance provider if I move out of the state?
If your current car insurer doesn’t cover your new state, you’ll need to change to a new insurer. Each state in the United States has its own minimum requirements for property damage, liability, and bodily injury coverage. Some may even require uninsured motorist and personal injury protection insurance.
New Hampshire and Virginia don’t mandate a car policy. However, you must show you can cover costs for property damage and medical bills per the financial responsibility laws. You need to inform your insurer or get a new local policy when you move to a different state. Since rates are based on your location and ZIP code, keeping this information updated is very important.