Changing your address can affect your car insurance, as it’s one of the many factors insurance companies use in determining your auto insurance premium. A change in address can increase your level of risk, which means changing your address could either make your insurance rate cheaper or more expensive, depending on where you move.
Your address really does matter. Insurers ask for it when you are getting a car insurance quote. Carriers need your address for not just sending bills and information but also because it affects how much you’ll pay for coverage.
Not all insurance providers calculate their customers’s premiums in the same way, so it’s important you get quotes from different insurers to help you determine how much you’ll spend.
Reasons Why Car Insurance Rates Can Change?
Here are reasons why car insurance rates can change depending on your location, including:
- Population Density: People in large cities tend to pay more than people in rural or suburban areas, the reason being that big cities are prone to more traffic, which could lead to potential accidents. And more accidents lead to more claims.
- Crime rates: A higher crime rate can affect your car insurance. So if the new place you are moving to has a higher crime rate, then insurance carriers will look more into the new place by checking the rates of stolen vehicles and vandalism. Cities often have a higher crime rate, and insurance companies will ask to know how you store your car when you are not driving it, so it’s important that car owners safeguard and store their cars from damage.
- State-mandated liability: The amount of minimum liability insurance a person needs to have to be able to drive varies from state to state. Moving from one state to another means you will need to adjust the amount of liability insurance you have to correspond to the state law, and this can affect your rate. Some states require that drivers have Personal Injury Protection, or PIP, coverage, while others do not.
The higher the requirement of your overall minimum insurance, the higher your rate will be. That is why it’s important to update your car insurance when you move.
Does Zip Code Affect Car Insurance?
Yes,your zip code can have an impact on your car insurance, just as your address does. Insurance companies use your ZIP codes to track claims, accidents, and more. Since it is used as a determinant for your risk level as a driver, when you move to a ZIP code in a larger city, your car insurance will increase.
Do You Have to Change Car Insurance When You Move to a New State?
Yes, when relocating to a new state, your auto insurance must be changed. This does not need you to obtain completely new insurance, but it does require you to at least let your present insurer know where you are moving.
Due to requirements for auto insurance, you must obtain a new policy as quickly as possible if your current insurer does not provide coverage in your new neighborhood. If not, you can encounter difficulties timely registering your vehicle.
What Happens If You Don’t Change Your Address for Car Insurance?
Moving can result in issues with your insurance company if you don’t update your address, particularly if you move states. In the worst situation, you might face criminal charges.
If you relocate within the same city or to the next town over from your previous one, insurers may understand if you fail to update your address. However, you may be in serious trouble if you intentionally mislead your provider in an attempt to prevent an increase in insurance rates.
If your insurer discovers that you are doing this, they may reject your claim, and you may be engaging in insurance fraud. Comparably, after moving to a new state, it is not acceptable to use a friend’s address or ZIP code from a previous state. Be open and truthful with your insurance provider at all times.
Frequently Asked Questions
Can I temporarily pause my car insurance during a move?
Some insurers may allow you to suspend or reduce coverage temporarily under certain circumstances. Check with your insurance provider to see if this is an option.
Does my car insurance cover my belongings during a move?
Typically, car insurance doesn’t cover personal belongings in your vehicle. You might need separate renters or homeowners insurance for that.
How often should I update my address with my car insurance company?
Update your address as soon as possible after a move to ensure you’re properly covered and paying the correct rates.
Does moving to a safer area guarantee lower car insurance rates?
While moving to a safer area can help lower your rates, other factors like your driving record, age, and the make and model of your vehicle also affect your premiums.
Can I keep my current car insurance if I move out of state?
Most insurance companies operate in multiple states, so you may be able to keep your policy. However, you’ll still need to update your address and ensure you meet the new state’s requirements.
Why does my car insurance company care about my address?
Insurance companies consider your address because some areas have higher rates of accidents, theft, or vandalism, which affects the risk associated with insuring your car.
How does moving impact my car insurance rates?
Moving can cause your car insurance rates to go up or down, depending on the level of risk associated with your new address.
