Why did my car insurance go up when I moved?
There are lots of ways that insurance companies use location information to figure rates, so your car insurance premium might be affected after you move.
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UPDATED: Jun 10, 2022
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Table of Contents
- Insurance companies use your location statistics and driving information to determine your auto coverage costs
- Regulations vary by state, so moving to a new area might change your rates
- Insurance companies require that you notify them in the event of any move so they can reassess your coverage
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: “Why did my car insurance go up when I moved?” 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 discusses which factors companies use to establish rates, how state insurance regulations differ, and why it’s a good idea to notify your insurance when relocating.
Table of Contents
Why did my car insurance go up when I moved?
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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.
Crime Rates
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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.
| State | Least Expensive Zip Code | City | Lowest Average Annual Auto Insurance Rates | Most Expensive Zip Code | City | Highest Average Annual Auto Insurance Rates |
|---|---|---|---|---|---|---|
| Virginia | 24450 | Lexington | $2,018.13 | 22312 | Alexandria | $2,871.02 |
| Hawaii | 96703 | Anahola | $2,198.62 | 96704 | Captain Cook | $2,859.11 |
| Ohio | 44883 | Tiffin | $2,325.38 | 43224 | Columbus | $3,667.48 |
| Alaska | 99820 | Angoon | $2,335.97 | 99504 | Anchorage | $3,132.74 |
| Massachusetts | 02554 | Nantucket | $2,378.90 | 02119 | Boston | $5,333.79 |
| Maine | 04742 | Fort Fairfield | $2,403.90 | 04684 | Surry | $2,785.77 |
| Washington | 98368 | Port Townsend | $2,461.54 | 98118 | Seattle | $4,079.23 |
| Wisconsin | 54130 | Kaukauna | $2,491.30 | 53206 | Milwaukee | $5,102.46 |
| Iowa | 52241 | Coralville | $2,598.27 | 51501 | Council Bluffs | $3,633.75 |
| Idaho | 83716 | Boise | $2,612.88 | 83536 | Kamiah | $3,008.28 |
| New York | 14830 | Corning | $2,729.59 | 11212 | Brooklyn | $10,751.24 |
| California | 93401 | San Luis Obispo | $2,731.32 | 90210 | Beverly Hills | $6,324.83 |
| Illinois | 61443 | Kewanee | $2,792.51 | 60636 | Chicago | $5,437.22 |
| North Carolina | 28701 | Alexander | $2,860.59 | 28205 | Charlotte | $4,803.84 |
| Montanna | 59635 | East Helena | $2,866.45 | 59089 | Wyola | $3,457.81 |
| Arizona | 86403 | Lake Havasu City | $2,883.46 | 85009 | Phoenix | $5,479.07 |
| New Hampshire | 03431 | Keene | $2,887.77 | 03104 | Manchester | $3,845.88 |
| Wyoming | 82801 | Sheridan | $2,896.66 | 83414 | Alta | $3,156.85 |
| Indiana | 47909 | Lafayette | $2,931.86 | 46402 | Gary | $4,747.17 |
| Missouri | 65301 | Sedalia | $2,938.18 | 63120 | Saint Louis | $5,220.97 |
| New Mexico | 88310 | Alamogordo | $2,948.89 | 87121 | Albuquerque | $4,364.29 |
| Oregon | 97850 | La Grande | $2,953.60 | 97236 | Portland | $4,908.54 |
| Kansas | 67401 | Salina | $2,954.93 | 66115 | Kansas City | $4,318.12 |
| Mississippi | 39759 | Starkville | $3,077.33 | 39086 | Hermanville | $4,323.64 |
| Vermont | 05446 | Colchester | $3,098.67 | 05079 | Vershire | $3,314.44 |
| South Carolina | 29672 | Seneca | $3,115.58 | 29933 | Miley | $4,519.05 |
| Pennsylvania | 16823 | Bellefonte | $3,116.01 | 19133 | Philadelphia | $8,527.54 |
| Nebraska | 68803 | Grand Island | $3,133.81 | 68111 | Omaha | $4,516.91 |
| Texas | 76901 | San Angelo | $3,157.68 | 78049 | Laredo | $5,538.80 |
| Tennessee | 37601 | Johnson City | $3,173.65 | 38118 | Memphis | $4,991.62 |
| Utah | 84721 | Cedar City | $3,239.58 | 84104 | Salt Lake City | $4,580.22 |
| Colorado | 81504 | Grand Junction | $3,291.13 | 80219 | Denver | $4,762.40 |
| Alabama | 36360 | Ozark | $3,310.05 | 35218 | Birmingham | $4,428.60 |
| Nevada | 89406 | Fallon | $3,411.08 | 89101 | Las Vegas | $7,486.53 |
| South Dakota | 57201 | Watertown | $3,467.81 | 57770 | Pine Ridge | $4,695.24 |
| Florida | 32694 | Waldo | $3,481.35 | 33142 | Miami | $7,631.16 |
| West Virginia | 25401 | Martinsburg | $3,519.10 | 25621 | Gilbert | $5,111.14 |
| Kentucky | 42303 | Owensboro | $3,562.72 | 41542 | Lookout | $7,400.56 |
| Oklahoma | 73555 | Manitou | $3,646.98 | 74110 | Tulsa | $5,150.50 |
| Maryland | 21783 | Smithsburg | $3,658.86 | 21216 | Baltimore | $8,830.19 |
| Arkansas | 72626 | Cotter | $3,675.93 | 72202 | Little Rock | $4,957.15 |
| North Dakota | 58104 | Fargo | $3,677.18 | 58538 | Fort Yates | $4,477.64 |
| Connecticut | 06340 | Groton | $3,896.10 | 06103 | Hartford | $6,373.96 |
| Rhode Island | 02842 | Middletown | $3,908.01 | 02907 | Providence | $7,262.39 |
| Minnesota | 56007 | Albert Lea | $3,976.80 | 55411 | Minneapolis | $6,620.56 |
| Georgia | 31699 | Moody AFB | $3,976.82 | 30314 | Atlanta | $6,991.02 |
| Louisiana | 71439 | Hornbeck | $4,332.48 | 70117 | New Orleans | $9,303.50 |
| District Of Columbia | 20001 | Washington | $4,383.61 | 20002 | Washington | $4,440.79 |
| New Jersey | 07926 | Brookside | $4,592.17 | 07102 | Newark | $8,512.59 |
| Delaware | 19930 | Bethany Beach | $4,953.79 | 06340 | Groton | $3,896.10 |
| Michigan | 48880 | Saint Louis | $7,916.29 | 48201 | Detroit | $30,350.09 |
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How States Regulate Auto Insurance
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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 car insurance 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.
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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.
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: 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.
Why You Should Notify Your Insurance Company When Moving
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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 did my car insurance go up when I moved? Final Thoughts
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.
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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.
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Written by
Rachel Bodine |
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Reviewed by
Daniel Walker
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