If I Move do I Have to Change my Policy?

Sometimes in life, your personal situation might change, and you need to consider how this might have an effect on your car insurance coverage. One common issue that could have an effect on your car insurance coverage is moving. When you sign up for a policy, your insurer gives you a premium based on your risk, and part of this risk is associated with where you live and drive your vehicle each day. If this changes, then your risk may change as well.

You may think that you don't need to report this information if you are just moving across town, but this is not the case. Car insurance rates can differ from one neighborhood to the next, based on accident rates, crime rates and varying state emissions testing requirements. So moving and not telling your provider is a bad idea, and it could have some serious consequences for you. If you move without telling your car insurance company and then an accident occurs, you could end up not being able to make a claim on your policy. This could end up costing you a large sum of money.

Reassessing Your Risks

It's a good idea to talk to your provider as soon as you possibly can about your new address. Some companies will require that you be evaluated for a new premium right away, while some others out there will just suggest that you consider changing your coverage. Even if you are not required to change your coverage now, you may have to do so when it comes time to renew your policy. Keep in mind that it may affect your rates in the future, even if it does not do so now.

If you are hesitating about reporting your move to your car insurance company because you think it's going to raise your rates, then you need to consider the fact that it might actually move them down some. You'll need to take into consideration all of the details associated with your move. For example, you may be able to now park your car in a garage rather than on the street, and your insurance provider might see this as reducing the risk of accident or theft. If your risk is reduced in any way, then you could see a reduction in your premiums.

Changing Your Policy

If you do move you may decide on your own that it's a good idea to change your policy. For example, you may be moving from a small town that doesn't have a lot of traffic to a big city that does have tons of traffic. In this case, you may decide that you want to get higher levels of liability coverage as well as higher levels of collision coverage. Or, on the other hand, you may be moving from a big city to a small town and decide that you have less risk here, so you may want to see about dropping some of your coverage.

One thing that you should consider when you are trying to figure out if you need to make policy changes when moving is that you might want to try and get some new discounts. If you are moving to a place with lots of public transportation, then you may be eligible for a low mileage discount. This could end up saving you a ton of money on your coverage, so you should look into these options today and see just how much you could be saving on premiums.

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