Because many auto insurance providers determine your rates largely based upon where you live, you need to communicate your change of address when you move house. Neglecting to do so can invalidate your policy. If you move and are involved in a car accident during which you're injured or your vehicle sustains damage, you may be surprised to discover that your car insurance policy no longer offers coverage.
#2 - Rate Adjustment By Zip Code
One of the reasons why your car insurance premiums are affected by your location is that carriers often assign risk to specific zip codes. For example, if there is an inordinate concentration of drivers in a certain zip code, your rates may increase. Or, if you're moving to a zip code that has a high crime rate (auto theft, vandalism, etc.), your rates may also increase. Of course, that means that moving to a zip code with fewer drivers and a lower crime rate should result in lower premiums.
#3 - Reduce Your Rates Through Less Driving
Sometimes, moving house means you'll be driving less. Living closer to your job, your child's school, or other destinations you'll visit often (for example, a grocery store) can lower your car insurance rates. Insurance Companies understand that the fewer miles someone drives each year, the less likely it is that they'll be involved in an accident. And that results in fewer claims.
#4 - Garage Vs. Driveway Vs. Street
Auto insurance companies receive claims for auto theft and vandalism every day. It's costly for them to payout on these claims. Because a motor vehicle is more likely to be stolen or vandalized if it is parked on the street, insurance providers tend to consider garaged vehicles (and even driveway parking) more favorably. If you're moving house and your new location provides garage parking, your car insurance company may be able to offer you a discount.
#5 - Will Your Marital Status Or Financial Status Change?
Sometimes, moving house is associated with a change in financial or marital status. Both can affect your premiums. Because automobile insurance carriers take into consideration your overall financial health and credit score when determining your premiums, an increase in your overall financial health could mean lower rates going forward. Similarly, carriers consider married people to be less likely to get into an auto accident. If you're moving house due to getting married, let your auto insurance company know. You may be rewarded with a further discount on your premiums.
When It's Time To Move
Moving house can be a stressful and frustrating event. There are hundreds of decisions to make and usually a limited time frame during which to make them. That being said, it's important that you take the time to update your car insurance policy with the details of your new location. That includes updating your address and the number of miles you'll be driving each year. Note adjustments in your parking arrangements as well as changes in your financial or marital status. Each of these factors can affect the premiums you'll pay. And not communicating these factors can invalidate your coverage.
