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Packing up your life and hauling it somewhere new usually means big changes — even if it’s just across town. And regardless of if you’re moving state-to-state or just switching neighborhoods, updating your car insurance can result in a noticeable difference in your rates.
Two of the main factors that impact rates are your new ZIP code and state regulations. If you’re moving to a neighborhood associated with more or less risk, your rates will go up or down accordingly. Likewise, insurance could be more or less expensive depending on how much coverage your state requires you to buy.
The two factors mentioned above, your ZIP and state, are going to both impact how much you pay in different ways.
Even within the same city, rates can dramatically change based on the amount of risk associated with your neighborhood. This is in large part due to the number and severity of theft and accident claims filed in each particular area.
For example, the average cost of car insurance in Illinois as a whole is $803 per year, but that number rises to $1,098 in Chicago — a city of over 2.7 million people.
And moving states can mean a vastly different policy. Different states have different coverage requirements.
For example, some states require personal injury protection or uninsured motorist coverage, whereas others don’t. The best way to make sure you’re not missing a thing is to check with your insurance company when you move to make sure you’re abiding by the laws in your new area.
Are you moving to a no-fault state? Insurance companies in no-fault states will automatically compensate you in the event of an accident, regardless of who was at fault. Other states go by tort liability, which means your provider can refuse to offer full coverage if the accident was partly your fault.
Moving is a great time to reevaluate your car insurance policy and find new ways to save.
Call your insurance company when you relocate to make sure your policy is up to date. Have the following details on hand, especially if you’re moving states:
As you’re getting geared up to make your move and while you’re on your way, you’re already going to have a lot on your mind. But taking the time to update your coverage will help ensure you get the best rates for protection in case of a crash.
Don’t let coverage slip through the cracks between cardboard boxes and packaging tape. If you’re gearing up to relocate, it’s important to compare car insurance rates to make sure you’re getting the best deal.
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