How Moving Can Affect Your Car Insurance Rate

What Variables Make It Go Up or Down

a family sitting on a couch surrounded by moving boxes
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If you’re moving to a new state, you probably already know that moving out of state requires new car insurance. But if you’re simply moving across town, do you still need to take car insurance rates into consideration?

Unfortunately, yes. Your car insurance rate can go up, or down, for the sole reason of moving. Insurance rates are highly sensitive to all sorts of variables. Moving can be directly linked to an increase in car insurance rates in many cases. Moving to a more populated area, an area with a sizeable deer population, or an area farther away from your job, can all trigger rate increases.

In direct contrast to rates going up, they can also go down for the same reasons. If you move to a better area with less crime, or you are moving out of a high-priced auto insurance state, you can leave with big savings. As long as you are staying in the same state, you can call your current insurance carrier and request a quote for your new address in advance.

This is the best way to find out about an increase in advance—and requires the least effort and stress on your part. Moving out of state? Then you will need to start getting quotes from your new state to see what you will be looking at price wise.

The map below shows the average car insurance rates by state in 2016.

If you’re insured by a large national company, your insurance agent may be able to recommend someone else who works for his or her same company -- meaning you’d get to keep any accumulated safe driver, loyalty or accident-free discounts you’d racked up over the years.

Other Possible Reasons for a Car Insurance Rate Increase

Car insurance rates are always changing. The fastest way to find out why is to call your agent. Take a look at a few of the most common reasons.

  • Traffic Violations
  • Filing a Claim
  • Insurance Carrier Across the Board Increase for All Policy Holders
  • Increase in State Fees
  • Adding a Driver
  • Increasing Coverage
  • Aging Drivers

What You Can Do About a Rate Increase

Regardless of the reason your car insurance rates have increased, you should start thinking of ways to save. Or better yet, get your agent thinking of ways you can save. That is what you pay an agent for, good advice.

  • Review Your Discounts: Discounts can become available or overlooked. It never hurts to double check possible discounts.
  • Evaluate Your Coverage: Aging cars should be reviewed for possible changes in coverage. Also, things like kids growing up or your savings account allowing for more risk could lead to coverage change. Remember higher deductibles reduce the cost of car insurance
  • Shop For Quotes: Moving is a great time to shop for lower car insurance rates. Get three or more quotes to compare. It is important to quote coverage as similarly as possible in order to see which policy costs the least.

A car insurance rate increase due to moving is usually not substantial enough to make you not move. It can still be a concern and it is definitely something to think about. Just because car insurance can be frustrating, does not mean you can go without it.