How Does Changing Your Address Affect Car Insurance?

How Does Changing Your Address Affect Car Insurance?

Insurance companies usually determine auto insurance premiums based on a number of factors, including your address. If you change your address, your premium could change, either becoming cheaper or more expensive depending on the new risk level. 

Population Density

Car insurance in rural and suburban areas is usually cheaper than big-city car insurance. This is because large cities are dense, resulting in more traffic and potential accidents. 

Crime Rates

If the new place you’re moving to has a higher crime rate, it can affect your car insurance. Specifically, insurance carriers will look for spikes in rates of stolen vehicles and vandalism. 

Living in a big city may also force car owners to store their cars differently. If you cannot acquire a safe overnight garage parking spot and are forced to park on the street, your car may be at higher risk of being damaged. 

State-Mandated Liability Insurance

The amount of minimum liability insurance you need to have to operate a vehicle varies by state. If you move across state lines, this change can affect your car insurance premium. Some states mandate that drivers have Personal Injury Protection (PIP), while others do not. 

The higher your overall minimum insurance requirements, the higher your rate may get. This is one reason it’s often recommended to update your coverage if you move. 

Does ZIP Code Affect Car Insurance?

Yes. ZIP codes can affect your car insurance rate. Insurance companies often track claims, accidents, and other statistics by ZIP codes, which means your risk level is usually influenced by your ZIP code. 

Typically, if you move to a ZIP code of a more densely populated area, your car insurance rate will go up. 

Do You Have to Change Car Insurance When You Move States?

Yes, you need to change your car insurance when moving states. While this does not mean you have to get entirely new insurance, it does mean you have to at least notify your current insurer of your new address. 

If your insurer does not offer coverage in your new neighborhood, you need to get a new policy as soon as possible because of car insurance requirements. Otherwise, you may have trouble registering your car in time. 

What Happens If I Don’t Change My Address on My Car Insurance?

If you do not change your address, you will probably be in trouble with your insurer. You may even be held criminally liable! While high insurance rates are a pain, misleading an insurance company can cause big problems down the line.