In short, it depends on where you move. Insurance companies rate each area in your state by zip code. They look at all the risk factors in your area such as number of highways, population density, crime and of course the number of accidents that have occurred in your part of town.
Why is Auto Insurance Rated on Address?
Insurance companies rate on where you live because they are evil and want to buy even more private jets. Just kidding (only slightly). The real reason you are rated on where you reside is because it presents an increased risk. If you live in a zip code where cars are stolen everyday, guess what you’re going to pay more because the likelihood of your car being stolen is increased.
How Do Rates Change Based on Where I Live?
As a rule of thumb, your rates will be higher the closer you live to a big city. For example, if you live downtown your insurance rates will be higher than those who live in a smaller rural area. Even if you move as close as 6 miles toward the busier part of town your premiums will likely go up. I found this out the hard way as I just moved a few blocks closer to downtown and my rates went up!
If you are planning on moving, it’s a good idea to give your insurance company a call to ask them how much your rates would be if they we’re calculated from the new address. This will help give you a better understanding of what your costs will be when you decide to make the big move.
How Much Will I Pay When I Move?
The best way to find out is to use our site to compare rates across different companies, making sure you input your new address to see which insurance company will give you the lowest rate. You can do a free quote here.