Why do auto insurance rates increase when you move?
Some reasons why auto insurance rates increase when you move is due to changes in risk factors, such as traffic, crime, and weather. For example, moving from Lexington, VA, to Detroit, MI, raises rates by $668 on average. Below, we'll explain why your car insurance premiums go up when you move.
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Jeffrey Manola
Licensed Insurance Agent
Jeffrey Manola is an experienced insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for insurance with the most affordable rates available. Not only does he strive to provide consumers with the best prices for insurance coverage, but he also wants those on the market for insurance to ...
Licensed Insurance Agent
UPDATED: Feb 1, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Feb 1, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Insurers consider location and driving information to set rates
- Regulations vary by state, so moving to a new area might change your rates
- You must notify your provider if you move to reassess coverage
The biggest reason why auto insurance rates increase when you move is because insurers must reassess risk in your new location. The best auto insurance companies set rates based on your vehicle, driving history, and applicable state regulations.
In addition, your ZIP code provides information that helps determine how much your coverage should cost. Below, we’ll explain more about other factors that affect auto insurance rates, discuss how state auto insurance laws differ, and why you should notify your insurance when relocating.
Reasons Why Auto Insurance Rates Increase When You Move
How does where you live affect your car insurance? Location is one of the most significant considerations insurance companies use when deciding which policies to offer and how much to charge for coverage. So if you noticed an increase in your rates after a move, it could be due to one of these local factors.
Population Density
Having more drivers on the road contributes to crowded roadways, heavy traffic, and high rates of collisions. As a result, insurance companies charge more for coverage if you live or drive in a densely populated city to offset the cost of potential claims in these areas. Since urban centers are more populated than rural or suburban areas, moving from one to the other can influence what you pay.
Commute
Another factor that hinges on your location is the duration or distance of your commute. The more time you spend in your car, the higher your likelihood of being in a collision. A longer commute could mean paying more for coverage, even if you relocate to an area with better driving conditions or a safer environment.
Read More: Most Expensive Commutes in America
Crime Rates
When calculating rates, insurance companies look at an area’s vehicle-related crime statistics, such as theft or vandalism. Statista has calculated those crime statistics for you. If your vehicle is statistically more likely to be damaged or stolen, companies will charge a higher rate to insure it. Consider the safety of your new neighborhood, as local crime rates can significantly influence the cost of coverage.
Weather
It’s easy to overlook the impact of weather on your car insurance rates, but hail, flooding, and strong winds can leave your vehicle vulnerable to damage.
Regions that experience severe natural disasters, such as tornadoes, hurricanes, and wildfires, handle more claims, so moving to one of these regions could explain an increase in your rates.Michelle Robbins Licensed Insurance Agent
How much will my auto insurance go up? Take a look at the table below to see just how drastic increases can be by state.
State | Cheapest City | Lowest Rates | Expensive City | Highest Rates |
---|---|---|---|---|
Alabama | Ozark | $276 | Birmingham | $369 |
Alaska | Angoon | $195 | Anchorage | $261 |
Arizona | Lake Havasu City | $240 | Phoenix | $457 |
Arkansas | Cotter | $306 | Little Rock | $413 |
California | San Luis Obispo | $228 | Beverly Hills | $527 |
Colorado | Grand Junction | $274 | Denver | $397 |
Connecticut | Groton | $325 | Hartford | $531 |
Delaware | Bethany Beach | $413 | Groton | $325 |
District Of Columbia | Washington | $365 | Washington | $370 |
Florida | Waldo | $290 | Miami | $636 |
Georgia | Moody AFB | $331 | Atlanta | $583 |
Hawaii | Anahola | $183 | Captain Cook | $238 |
Idaho | Boise | $218 | Kamiah | $251 |
Illinois | Kewanee | $233 | Chicago | $453 |
Indiana | Lafayette | $244 | Gary | $396 |
Iowa | Coralville | $217 | Council Bluffs | $303 |
Kansas | Salina | $246 | Kansas City | $360 |
Kentucky | Owensboro | $297 | Lookout | $617 |
Louisiana | Hornbeck | $361 | New Orleans | $775 |
Maine | Fort Fairfield | $200 | Surry | $232 |
Maryland | Smithsburg | $305 | Baltimore | $736 |
Massachusetts | Nantucket | $198 | Boston | $444 |
Michigan | Saint Louis | $660 | Detroit | $830 |
Minnesota | Albert Lea | $331 | Minneapolis | $552 |
Mississippi | Starkville | $256 | Hermanville | $360 |
Missouri | Sedalia | $245 | Saint Louis | $435 |
Montanna | East Helena | $239 | Wyola | $288 |
Nebraska | Grand Island | $261 | Omaha | $376 |
Nevada | Fallon | $284 | Las Vegas | $624 |
New Hampshire | Keene | $241 | Manchester | $320 |
New Jersey | Brookside | $383 | Newark | $709 |
New Mexico | Alamogordo | $246 | Albuquerque | $364 |
New York | Corning | $227 | Brooklyn | $896 |
North Carolina | Alexander | $238 | Charlotte | $400 |
North Dakota | Fargo | $306 | Fort Yates | $373 |
Ohio | Tiffin | $194 | Columbus | $306 |
Oklahoma | Manitou | $304 | Tulsa | $429 |
Oregon | La Grande | $246 | Portland | $409 |
Pennsylvania | Bellefonte | $260 | Philadelphia | $711 |
Rhode Island | Middletown | $326 | Providence | $605 |
South Carolina | Seneca | $260 | Miley | $377 |
South Dakota | Watertown | $289 | Pine Ridge | $391 |
Tennessee | Johnson City | $264 | Memphis | $416 |
Texas | San Angelo | $263 | Laredo | $462 |
Utah | Cedar City | $270 | Salt Lake City | $382 |
Vermont | Colchester | $258 | Vershire | $276 |
Virginia | Lexington | $168 | Alexandria | $239 |
Washington | Port Townsend | $205 | Seattle | $340 |
West Virginia | Martinsburg | $293 | Gilbert | $426 |
Wisconsin | Kaukauna | $208 | Milwaukee | $425 |
Wyoming | Sheridan | $241 | Alta | $263 |
Read More: Does car insurance cover storm damage?
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How States Regulate Auto Insurance
You may ask yourself, “Will my car insurance cover me if I move to another state?” In addition to driver information and location statistics, companies must follow state regulations to determine policy requirements. For example, if you move to a new state, you might need to purchase a new policy or additional coverage to comply with a new set of rules.
State laws regarding auto insurance vary, but they can dictate the amounts or types of auto insurance coverage needed, the cost of your policy, and whether you are at fault in a collision. Here are legal distinctions that you might encounter after an out-of-state move.
At-Fault and No-Fault Systems
All states fall under one of two broad systems for determining liability for vehicle-related bodily injury. First, most states are known as at-fault states, where the driver who caused the accident is legally liable for damages. If you are at fault, you must cover the cost of any medical expenses.
In no-fault states, each driver must carry personal injury protection to protect themselves and their passengers after a collision. There are only 12 no-fault states in the country, but the rates for insurance in these places are notably higher since you are required to pay for additional coverage.
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Mandatory Minimums
Almost all states have established mandatory car insurance coverage requirements to help protect drivers in case of a collision. In these regions, you must purchase specific types of insurance and carry minimum coverage amounts to drive legally. Depending on where you move, you may be required to have:
- Bodily injury liability: Covers medical costs for any injuries for which you are at fault.
- Property damage liability: Pays for any damage to vehicles or other property that you cause.
- Personal injury protection: Personal injury protection (PIP) auto insurance covers medical expenses for you and any passengers injured during a collision.
- Uninsured motorist protection: Pays for your medical costs if an uninsured driver is at fault.
- Underinsured motorist protection: Covers your medical expenses if an at-fault driver has insufficient insurance.
You might have to purchase one or more of these policies based on where you move. Keep in mind that many insurance companies offer policies in some states but not in others. If you move out of a company’s coverage area, you might need to find a new one to remain insured.
Read more: Minimum Auto Insurance Requirements by State
Why You Should Notify Your Insurance Company When Moving
Since location is a vital component when determining policy options, you must report any change of address. Even if you are only moving a short distance, your insurance company will still need to reassess your policy and rates to ensure adequate and appropriate coverage for your new location.
If you forgot or chose not to notify the company about your relocation, you might have your claims denied, your policy canceled, or your rates adjusted to pay back the cost of any increase. Notify your insurance company when you move to protect yourself and prevent unanticipated costs.
More About How Moving and Car Insurance Affect Each Other
We hope we have helped you answer, “Does changing your address affect your car insurance?” If you are concerned about why your car insurance went up when you moved, consider location factors that impact your rates.
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— AutoInsurance.org (@AutoInsurance) April 7, 2023
Pay attention to location conditions and state laws to understand what changes you might experience in your coverage.
Frequently Asked Questions
Why did my auto insurance go up when I moved?
Whenever you move, auto insurance companies must reassess your risk level, since your new location may have additional risk factors, such as traffic, high population, and weather.
Why should I notify my insurance company when moving?
It is crucial to notify your insurance company when you move so that they can reassess your policy and rates based on your new location. Failure to notify them may result in denied claims, policy cancellation, or adjusted rates. Reporting your change of address ensures that you have adequate and appropriate coverage for your new location.
How can I prevent unanticipated costs when moving?
To prevent unanticipated costs, notify your insurance company when you move. This allows them to adjust your policy and rates accordingly. By keeping your insurance company informed, you can protect yourself from policy issues and ensure that you have the right coverage in your new location.
How long do you have to change your car insurance when you move to a new state?
The typical time period is 30-90 days. But to be on the safe side, check with your auto insurance provider.
Will my auto insurance rates always increase when I move?
No, not necessarily. While moving can result in higher insurance rates due to various factors, it is also possible for rates to remain the same or even decrease, depending on the specific circumstances of your move.
Can I transfer car insurance to another new state?
In most cases, you cannot transfer car insurance to another state. Each state has its own insurance regulations and requirements, so when you move to a different state, you will typically need to cancel your existing policy and purchase a new one.
What if I move within the same city or ZIP code?
Even if you move within the same city or ZIP code, it’s still important to notify your insurance company. Certain factors, such as changes in parking arrangements, proximity to work, or even adjustments in population density within the same area, can affect your insurance rates.
Can I keep my current auto insurance policy if I move to a neighboring state?
In most cases, you will need to switch to a new auto insurance policy if you move to a neighboring state. While some insurance companies may offer coverage across state lines, it’s best to check with your provider to determine if they operate in the state you are moving to.
Should I get insurance on a long distance move?
Usually, it’s a good idea to look for third-party insurance coverage to protect your valuables as you transport them across the country.
Should I change car insurance when I move?
It’s always best to compare quotes from the top providers after moving to ensure you’re getting the best rates.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Jeffrey Manola
Licensed Insurance Agent
Jeffrey Manola is an experienced insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for insurance with the most affordable rates available. Not only does he strive to provide consumers with the best prices for insurance coverage, but he also wants those on the market for insurance to ...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.