How an Address Change Impacts Auto Insurance Rates in 2025 (+ Compare Cost by Location)

If you are looking into how an address change impacts auto insurance rates, it is because location is one of the many factors that affect auto insurance rates. Location factors like crime, weather, and traffic patterns can lower or increase your rates at your new address.

So, if you’re planning a move or have recently moved, we’ll detail how changing your address affects auto insurance. We’ll also explore why keeping your auto insurance address up to date is essential, what happens if you don’t, and how to change a car insurance address.

Ever wonder, “Why does car insurance go up when you change address?” If a change of address on car insurance caused rates to increase, use our free quote comparison tool above to find more affordable car insurance.

Why Changing Your Address Impacts Auto Insurance Rates

So, does changing your address affect your car insurance? Your premium is the amount you pay for your car insurance coverage, and where you live has a big impact on how much your policy costs. This is because minimum auto insurance requirements by state determine how much coverage you need, with more coverage meaning higher rates.

Does your address affect your car insurance? Yes, and to give you an idea of how rates can change, take a look at the average auto insurance rates by state below to see how changing your address affects car insurance:

In addition, moving from a rural area to a densely-populated city will cause your insurance rates to go up. Does ZIP code affect car insurance? Yes, check out the table below to see the cheapest ZIP codes in each state for car insurance:

Most Expensive ZIP Codes for Car Insurance in Each State

On the other hand, the table below shows the most expensive cities for auto insurance in each state:

Cheapest ZIP Codes for Car Insurance in Each State

Where you park your car can also affect your insurance rates. For example, if you usually park on the street, you could pay more for auto insurance than if you park in a secured garage or driveway.

If you park your car in a secure parking lot or garage at your new address, update this information with your insurance company. It could result in lower rates for you. You can get an even better deal if your garage has safety features like an alarm system or security cameras.

Read More: Best Parked Car Insurance

Other factors that car insurance companies take into account when determining your premium include:

• The type of car you drive
• Your driving record
• Your age, gender, and marital status

In some states, insurance companies are not allowed to use gender to determine rates.

Why Insurance Providers Require You to Update Your Address

Your insurance company needs to have up-to-date information for your car insurance coverage to remain valid and properly process any claims. For example, If you don’t make a State Farm address change when you move, it could result in higher rates or denied claims.

Read More: Do auto insurance companies check where you live?

It’s essential to change address on your insurance policy when you move.

You need to update your car insurance address when you move. There are a few reasons to do this:

• Insurance companies use your address to help determine your premiums.
• If you’re involved in an accident, the insurance company will need to know where you live in order to process your claim.
• Each state has its own laws and requirements for car insurance coverage, so your current policy may not be valid in your new state.
• If you’re leasing or financing your car and don’t update your auto insurance address when you move, you could violate your lease agreement or loan contract.

Most insurance companies give policyholders up to 30 days to update their address after moving. If you forget to change your car insurance address, many insurance companies allow you to update your address online or call a customer service representative.

Can you put a different address on your car insurance from where you live?

However, college students, active duty military, and people with two homes can usually list a different address.

What should I do if someone is using my address for auto insurance? If someone is using your address for insurance, it’s important to contact your insurance company and inform them of the situation.

What Happens If You Don’t Update Your Car Insurance Address

Do I need to change my address on car insurance? Yes, you could face several penalties for not changing your car insurance address, such as legal charges. Using the wrong address on car insurance is a violation of auto insurance laws. It’s considered insurance fraud to use a different address from where you live to get cheaper rates.

Other consequences of purposefully not telling your auto insurance provider you moved to a new address include:

• Policy Cancellation: Failing to change your address for car insurance could result in policy cancellation. If you move, it’s important to change the garage address policyholders have on file to ensure you keep your policy.
• Higher Rates: While using a different address for car insurance to get cheap rates sounds tempting, you face higher rates if your insurer discovers your car insurance has the wrong address.
• Claims Denial: If you get in an accident and need to file a car insurance claim, it could get denied if your insurer finds out you have the wrong address on your insurance policy.

So, if you forgot to change your address on car insurance, contact your insurer to let them know of the car insurance change of address and avoid any headaches down the line.

In some cases, you may even get a cheaper rate at your new address, so telling your insurance company about a car insurance address change could end up benefiting you.

How Car Insurance for a Temporary Address Works

If you’re only temporarily living at a new address, like on a business trip or vacation, you may not need a change of address for car insurance. It depends on the length of your stay and where you’ll be driving.

If you meet your policy’s terms, your auto insurance should cover you after an accident.

It’s always a good idea to check with your insurance company before making any temporary changes to ensure you’re fully covered. Some insurance companies may require you to update a car insurance temporary address if you’re going to be staying at a temporary location for an extended period.

Learn More: Cheap Auto Insurance for Temporary Residents

So, can I use a different address for car insurance? Generally, you can’t use a different address from where you live, unless you have a temporary address, are a college student, or have two homes.

Why Changing Your Address on Car Insurance Is Important

Now that you understand how an address change impacts auto insurance rates, make sure to update your auto insurance policy with any changes to your address, whether it’s a permanent or temporary move (Read More: What does an auto insurance policy look like?). Failing to change your address for car insurance could result in fines or cancellation of your insurance.

Thinking about moving❓? Does the fact that auto insurance is the cheapest💲in Vermont and Idaho help you narrow down your options? Find out where your state lies in the rankings for cheapest car 🚗 insurance.👉 https://t.co/ocK3NhDHcM pic.twitter.com/63TbSHRaH9

— AutoInsurance.org (@AutoInsurance) March 20, 2024

Of course, changing your address for car insurance is just one of many factors affecting auto insurance rates. So, use our free comparison tool to compare quotes from top providers and find better rates at your new address.