You will need to inform your vehicle insurer of your new address so that they can make the changes to their records, adjust the premium accordingly and let you know. Even moving within the same city can affect auto insurance rates because it changes the risks associated with your new location like crime and accident figures, commute distance and yearly mileage. If you move to another state, you need to buy a new policy, which is compliant with your new state’s minimum requirements. You may also have to change your provider if they aren’t licensed in the new state. You have 30 – 90 days to make the change, depending on the state and insurer.
In any case, moving home is one of those times you should get a few auto insurance quotes and compare prices. As rates are expected to change, you have a better chance of finding some savings. Here are some of the adjustments you may need to make on your policy before you shop around;
Coverage: A new address may require alterations to a policy. If you are relocating to a different state, you are required to get a totally new vehicle insurance policy to comply with the requirements of the new state within 30 – 90 days of moving depending on the company and state. This is a good time to go over your coverage and see if it needs any tweaks.
Drivers and cars to be insured: People move out of parents’ home, in with a partner or separate. So, it can affect the drivers and cars to be covered. Maybe you want a joint or multi-car insurance policy because you are getting married. You need to take all these new positions into account carefully.
Annual mileage: You may be getting closer to work and children’s school that you will be driving fewer miles now. You may even be making a career change and starting to work from home. This will take away the commute and reduce yearly mileage a lot. You need to make all these changes clear to your vehicle insurance provider as they take daily commute distance and yearly mileage into account when they calculate the new premium.
New home: If you are now becoming a homeowner you may want to take advantage of it as many companies offer discounts to homeowners as they consider them to be lower risk. This may be an opportunity to save further by bundling. Renters can bundle too but they may get less out of it.
Moving out of state: Not only do you need to get a new policy but you will also need to switch over your driver license, vehicle registration and license plates in time. Often you are required to switch your insurance before you can register your vehicle in the new state as they ask proof of insurance.
One question people are keen to find out is what happens to their traffic tickets and points when they move to another state? You shouldn’t expect to have a clean start since your driving records follow you. States share motor vehicle records.
Here are some of the relocation related vehicle insurance factors and how they affect premiums;
Zip codes and rates: Population density, number and size of accidents, claim loss data, traffic congestion, auto crimes, ratio of uninsured drivers and weather in your new zip code is likely to be much different and every piece of information is considered and included in premium calculations that results in different rates. State regulations are another factor to be added if you move to another state since each has its own laws and minimum requirements.
Urban vs. rural vehicle insurance prices: Rates are usually more expensive in cities because of higher crime, traffic and accidents. This translates to high-risk for carriers and high premiums for policyholders. So, relocating from a rural area to the city would usually increase your premium. And the opposite is true as well.
You Should Shop Around after Moving
Your zip code is one of the most significant factors in premium calculations and at times it can increase your costs to double or reduce to half, depending on how significant the move is. For example, moving from California to Maine can cut your premium to 1/3 only because auto insurance rates in Maine are much cheaper.
Even if you go across the city, you should always get multiple car insurance quotes to find the new fair premium in your new home. People should check prices at least once a year anyway and moving would be a good time to make sure you aren’t missing out on any savings, better coverage or more reliable carriers.