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.
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.
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How Your Home Insurance Policy May Be Affected By a Move
Think about your new place. From the roof to the basement to the outdoor living space and garage, many things affect the rate you will pay to protect your home and possessions, including:
- The neighbourhood
- The age of the house
- Your proximity to fire hydrants and fire stations
- The condition of the roof
- The plumbing and heating
What about the actual move? Whether you choose to rent a van and move your belongings on your own or hire a moving company, are your possessions covered while they’re on the truck?
Your home insurance policy may cover your personal property during a move, but any loss you suffer has to be related to a peril that's listed in your policy to make a successful claim if you must. Furthermore, your home policy might cover both your old and new home for 30 days. However, tell your insurer that you're moving – make sure you notify them about 30 to 60 days before your planned moving date.
Take a few minutes to shop around for both home insurance and auto insurance before you pull up stakes and head to your new digs. By exploring your options, you may find the coverage you need at a lower price than what you currently have. Also, it’s worth remembering many insurers will give you a discount on your overall insurance bill if you purchase both home and car insurance from one provider.