Moving house takes a lot of time and even more paperwork. From changing your address to signing up for a utility package, you may have noticed your car insurance premiums changed at your new zip code. Was this a mistake, or is a rate change common after moving?
Does Changing Your Address Affect Car Insurance?
Yes, your location determines how much you’ll pay for car insurance. If you move from a rural area to the city or vice versa, you’ll likely see the biggest change in your monthly bill. When you move, your company will switch over your current insurance policy to your new address.
It’s possible your insurer will suggest changes to your coverage. For example, if you move to a hurricane-prone area, your insurer may ask you to add extra storm-protection coverage.
If you move closer to work or you don’t plan on using your vehicle as much, your insurer may also suggest decreasing your level of coverage. It’s a good idea to speak to your insurance company before you move to make sure your car is adequately protected in your new city.
However, if you’re Australian and want to shop for a better deal away from your current provider, use the iSelect compare car insurance option on their website to find a policy that suits you.
Should I Change the Address on my Car Insurance?
You must inform your insurance company when you move to a different location. Insurance companies use your address to calculate your car accident risk and insurability.
Per your insurance contract, you typically have to notify your provider of a change of address within 90 days of moving. While it’s tempting to keep the same address on your car insurance, especially if you’ll have to pay more, failure to do so will amount to a “non-disclosure of facts.”
If you’re caught, you may be charged with fraud and rate evasion, which will cost much more than any insurance hike. It’s better to change your address ASAP to avoid legal issues.
How Do I Change My Car Insurance Address?
Changing the address on your car insurance is easy. You can either call your insurance provider or change your address online if you’re set up for online billing. However, simply changing the address isn’t the best option because you’ll save more money if you change your coverage.
If you’re registering your car in a new state, you’ll have to bring your insurance card to the DMV (or country equivalent) to prove you have enough coverage. Registration fees are less than $100, but it won’t cost you anything to change your address, even across multiple states.
If you’re moving a couple of blocks away from your current location, you typically won’t have to change your insurance coverage, and your rates will likely stay the same.
How Can I Check What I’ll Pay for Car Insurance?
When you move to a new location, it’s good practice to ask your insurance provider what the going rates are for the area. While cities are typically more expensive than suburbs, places with little to no public transit may be more costly if they’re an hour away from a big city.
Still, the farther you move away from the city, the less you’re likely to pay for car insurance. Your insurance provider will be able to help you find the best insurance for your location.
If you’re just browsing for new places to live, check out a car insurance map for your country or state. A general map will give you the average car insurance price across the state, while a state-specific map will offer more accurate pricing based on where you plan to live in the state.