Why did my auto insurance rates increase when I moved? (2025)

Why did my car insurance go up when I moved? The biggest reason auto insurance rates increase when you move is that insurers must reassess risk in your new location. 

The best auto insurance companies set rates based on your vehicle, driving history, and applicable state regulations. Your ZIP code also provides information that helps determine the cost of your coverage. Below, we’ll explain more about other factors that affect auto insurance rates, discuss how state auto insurance laws differ, and explain why you should notify your insurance when relocating.

If you’re still wondering, “Does moving impact my insurance rate?” enter your ZIP code into our quote tool above to compare rates.

Reasons Why Auto Insurance Rates Increase When You Move

Why does changing my address increase my car insurance premiums? Location is one of the most significant considerations insurance companies use when deciding which policies to offer and how much to charge for coverage.

How much will my car insurance change if I move? Take a look at the table below to see just how drastic increases can be by state:

Most Expensive and Cheapest Monthly Auto Insurance Rates in Each State by City

So if you noticed an increase in your rates after a move, it could be due to one of these local factors.

Population Density

So, why does auto insurance go up when moving to a bigger city? 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

Will my car insurance change if I move and end up with a longer 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. Learn more about the most expensive commutes in America.

Crime Rates

Does car insurance change when you move to an area with more or less crime? 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

Will my car insurance go up if I move to an area prone to bad 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. 

Read More: Does car insurance cover storm damage?

How States Regulate Auto Insurance

You may ask yourself, “Do I have to change my car insurance when 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.

So, why did my insurance go up when I moved to a no-fault state?

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

Do I need to change insurance when I move? Almost all states have established minimum car insurance 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, generally liability insurance.

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: Personal injury protection covers medical expenses for you and any passengers injured during a collision.
• Uninsured/underinsured motorist protection: Pays for your medical costs if an uninsured driver is at fault. It also 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.

Check out the table below to see each state’s minimum coverage requirements and whether it’s a no-fault or at-fault state:

Minimum Liability Auto Insurance Requirements by State

So, why did my car insurance go up when I change my address? You might have moved to an area with additional minimum coverage requirements, resulting in higher rates.

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.

Read More: How to Change Auto Insurance When Moving Out of State

So, why does changing address increase car insurance rates? Every area has different risk levels, which insurers will reassess if you change your address.

More About How Moving and Car Insurance Affect Each Other

We hope we have helped you answer, “Why does my car insurance go up when I move?” If you are concerned about why your car insurance went up when you moved, consider location factors that impact your rates.

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— AutoInsurance.org (@AutoInsurance) April 7, 2023

Pay attention to location conditions and state laws to understand what changes you might experience in your coverage. If you find yourself wondering, “Why is my car insurance going up?” enter your ZIP code into our quote comparison tool below to get started.