Are you moving to a new place?
Do you know moving can affect your car insurance policy? Yes, you heard that right. Demographics can affect the premium of your insurance. And if you are moving to a completely unfamiliar area, you might have to face changes in your premium.
What could be the reason for this? Certain demographic factors in your previous residential area aid in determining the premium. These may include the crime rate, weather, and type of infrastructure in the area. When you move, it is natural for these factors to change. It may affect your premium.
We have assembled a few things to know about car insurance if you move.
Why does moving to a new locality affect car insurance premiums?
Many of us move to a new house once or twice in our lifetime. It can be exciting, but it is also stressful. Moving home will mean changing your address with various organizations. One of these is your car insurance provider. Your insurer will use the latest information in calculating your premium.
Inform your insurance provider about the address change
If you are moving to a new house, you need to inform your existing insurance provider. Your new address may be within the same state or country as your standing policy. But it will not be in the same policy provider’s area. Your old address is likely within your new provider’s coverage area, but it may not be within the same company’s territory.
How to change the address for your car insurance?
You can notify your insurance broker of the change of address on your policy by calling them. Most insurance companies allow you to manage your policy online. You can request a change of address this way as well. You can also contact the customer service of your insurance company to change your address.
Does it cost to change the address for car insurance?
It is best to check this aspect when you sign the papers while getting insured. Although most companies do not charge you for changing your address, some might do. Remember that moving the car within the city limits of your insurance company will cost you more than selling or leasing the automobile. Your insurance agent can negotiate lower rates for moving within a small community.
So, now you know how and why moving can affect your car insurance. Do you know the difference between public and private car insurance? Read ‘Public vs. Private Car Insurance in Canada.’