Does moving affect auto insurance rates?

Moving is exciting, but it can also be mentally and emotionally stressful, and unexpected costs contribute to that stress. If you recently relocated, you might ask yourself: “Does moving affect auto insurance rates?” To answer this, it helps to understand how your new address might affect your rates.

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. This article answers, “What are five factors that affect auto insurance rates?” as well as discusses how state insurance regulations differ, and why it’s a good idea to notify your insurance when relocating.

Why did my car insurance go up when I moved?

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.

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.

U.S. ZIP Codes with the Highest and Lowest Auto Insurance Rates per State

State	Least Expensive Zip Code	City	Lowest Average Monthly Auto Insurance Rates	Most Expensive Zip Code	City	Highest Average Monthly Auto Insurance Rates
Virginia	24450	Lexington	168	22312	Alexandria	239
Hawaii	96703	Anahola	183	96704	Captain Cook	238
Ohio	44883	Tiffin	194	43224	Columbus	306
Alaska	99820	Angoon	195	99504	Anchorage	261
Massachusetts	2554	Nantucket	198	2119	Boston	444
Maine	4742	Fort Fairfield	200	4684	Surry	232
Washington	98368	Port Townsend	205	98118	Seattle	340
Wisconsin	54130	Kaukauna	208	53206	Milwaukee	425
Iowa	52241	Coralville	217	51501	Council Bluffs	303
Idaho	83716	Boise	218	83536	Kamiah	251
New York	14830	Corning	227	11212	Brooklyn	896
California	93401	San Luis Obispo	228	90210	Beverly Hills	527
Illinois	61443	Kewanee	233	60636	Chicago	453
North Carolina	28701	Alexander	238	28205	Charlotte	400
Montanna	59635	East Helena	239	59089	Wyola	288
Arizona	86403	Lake Havasu City	240	85009	Phoenix	457
New Hampshire	3431	Keene	241	3104	Manchester	320
Wyoming	82801	Sheridan	241	83414	Alta	263
Indiana	47909	Lafayette	244	46402	Gary	396
Missouri	65301	Sedalia	245	63120	Saint Louis	435
New Mexico	88310	Alamogordo	246	87121	Albuquerque	364
Oregon	97850	La Grande	246	97236	Portland	409
Kansas	67401	Salina	246	66115	Kansas City	360
Mississippi	39759	Starkville	256	39086	Hermanville	360
Vermont	5446	Colchester	258	5079	Vershire	276
South Carolina	29672	Seneca	260	29933	Miley	377
Pennsylvania	16823	Bellefonte	260	19133	Philadelphia	711
Nebraska	68803	Grand Island	261	68111	Omaha	376
Texas	76901	San Angelo	263	78049	Laredo	462
Tennessee	37601	Johnson City	264	38118	Memphis	416
Utah	84721	Cedar City	270	84104	Salt Lake City	382
Colorado	81504	Grand Junction	274	80219	Denver	397
Alabama	36360	Ozark	276	35218	Birmingham	369
Nevada	89406	Fallon	284	89101	Las Vegas	624
South Dakota	57201	Watertown	289	57770	Pine Ridge	391
Florida	32694	Waldo	290	33142	Miami	636
West Virginia	25401	Martinsburg	293	25621	Gilbert	426
Kentucky	42303	Owensboro	297	41542	Lookout	617
Oklahoma	73555	Manitou	304	74110	Tulsa	429
Maryland	21783	Smithsburg	305	21216	Baltimore	736
Arkansas	72626	Cotter	306	72202	Little Rock	413
North Dakota	58104	Fargo	306	58538	Fort Yates	373
Connecticut	6340	Groton	325	6103	Hartford	531
Rhode Island	2842	Middletown	326	2907	Providence	605
Minnesota	56007	Albert Lea	331	55411	Minneapolis	552
Georgia	31699	Moody AFB	331	30314	Atlanta	583
Louisiana	71439	Hornbeck	361	70117	New Orleans	775
District Of Columbia	20001	Washington	365	20002	Washington	370
New Jersey	7926	Brookside	383	7102	Newark	709
Delaware	19930	Bethany Beach	413	6340	Groton	325
Michigan	48880	Saint Louis	660	48201	Detroit	2529

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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.

Read more:

• At-Fault Accident Defined
• No-Fault Auto Insurance

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 insurance: PIP 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.

Why would my car insurance go up if I move? Final Thoughts

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. Pay attention to location conditions and state laws to understand what changes you might experience in your coverage.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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