Don’t Forget to Pack the Insurance!

Packing, moving and relocation means countless decisions, increased stress level and the inevitable frustrations. Along with unloading boxes, and forwarding your mail, updating your auto insurance policy should be at the top of your to-do list.

Car Insurance When Moving Out of State

If your move is permanent, your car insurance policy needs to be reviewed and altered for your new environment. Your insurance policy is based upon where you live, if you move out of state and are involved in an accident, neglecting to change your policy may result in an invalidation of your coverage and you may find yourself uninsured without realizing it.

When you notify your insurance company of your address change, expect a small change in your rates as well. Some of the most common reasons for relocation rate changes, regardless of your driving record, include:

1. Your zip code. If your new zip code is more populated than your current city, your rates may go up. If vandalism rates are lower, your rates may go down. Insurance companies are focued on minimizing risks, so if your location poses increased risks, your rates will go up, and vice versa.

2. Your Commute. If you’re relocating for work, you may find you are driving less miles each day. Fewer miles means a lower rate.

3. Natural disasters. If you move to an area which is known for flooding, tornadoes or other disasters covered by comprehensive insurance, this may also affect your rates.

4. Claims History. Unfortunately, some people end up paying for the mistakes of others. If you live in an area known for increased insurance claims, your rates will be higher. This is a good reason to think twice before moving near a bar.

5. Your Home. If you are moving out of your apartment into a house, be sure to let your insurance company know that you now have a garage. This limits your risks of auto theft and vandalism and may therefore lower your policy.

6. The Weather. Insurance companies also take mother nature into consideration, and may charge higher rates for areas with heavy snow, lots of rain or large trees.

Additionally, if you are moving to a new state, you’ll need to get to know a new agent. You can contact your current agent for a referral, but insurance agents are state-specific so you’ll most likely need to get a new agent if you’re switching states.

It is important to be aware of these factors and how they may affect your rates, but remember that not all policies will be affected and your change might be nor more than a few dollars. Comprehensive coverage is more affected than liability and when it comes right down to it, your locality isn't nearly as significant as your driving record.

By Matt Reynolds - Google+

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