You’ve made the move to another city, and on top of the extra expenses of boxes and packing supplies, hiring movers, deposits for utility companies, and having your mail changed over, now you find out that the cost of your insurance has gone up too.
When calculating premium rates, insurance companies consider many factors. The area in which you live is one of the larger factors that affect premium rates. How far you live from work, crime rates, population density of the community, accident rates in your new area, and local laws and regulations all play a role in the calculation of your premium. A move to another community, even within the same city, can dramatically change your premium.
“If you are planning on making a move, it is a good idea to call your broker and ask about how your move will impact your insurance premium“~Chad Mullen, Lane’s Insurance
For example, more cars are stolen or damaged in urban areas than in rural areas, so if you make the move to a more urban area, you are likely to see an increase in your insurance premium.
Similarly, if you move into a university city that has a large number of young drivers, the accident rates for that city are likely to be higher, and you will be charged a higher rate.
If you are planning on making a move, it is a good idea to call your broker and ask about how your move will impact your insurance premium.