If you are moving to a new residence, you have a lot to think about beyond renting a moving van and getting the keys to your new digs.
One of the many things to consider when changing homes is how it affects your home insurance and auto insurance policies.
How Your Car Insurance Policy May Be Affected By a Move
One of the factors insurance providers take into account when calculating the price of your auto policy is where you live. Some cities have a lot more vehicles per capita than others. That means that the likelihood of an accident is much higher and, consequently, so will the price of the insurance policy.
But a new address can also work in your favour if you are moving out of a large urban centre to a smaller town or the suburbs since the chances of getting into a collision may be less.
There are other factors to take into account. One is what the crime rate is of your new neighbourhood. If you have comprehensive coverage as part of your overall policy, you are protected should your vehicle be vandalized, broken into, or stolen. The area’s crime rate may result in a higher premium if you are moving to a place with a high crime rate, particularly if vehicles are frequent targets.
Also, if you move out of an apartment where you used to park on the street to a house or building where you can park in a garage, you may see a decrease in your premium since the vehicle’s risk exposure is less.
Another potential risk factor is how close you may live to an intersection with heavy traffic volumes, where the likelihood of a collision may be greater. Keep in mind, though, that each insurance company calculates rates differently. The insurer that offered you the best rate at your old address may not offer you the best rate at your new address.
The weather may also be a factor. Certain events such as floods or extreme winds and tornadoes can damage your vehicle, but those events are covered if you have comprehensive coverage. Therefore, if you move to a region which is prone to severe weather, you may pay more.
