What Should You Do About Your Auto Insurance When You Move?

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Are you about to move into another state or even city? You might want to double check your auto insurance policy before you settle on a place. Depending on where you're moving to, your auto insurance might be much more expensive. You may not even be able to transfer your existing policy over, if you're outside of your current coverage area.

You Need to Notify Your Company Right Away

You should always notify your insurance company within 30 days of any move. Your insurance rates are calculated based on your home and work locations, in addition to the make and model of your car and your driving record. It's important to keep your account with your insurance company accurate because otherwise you may find a subsequent auto claim being denied. Don't forget that you will also need to recalculate the amount of miles you expect to travel every year, as your commute to work or school will likely have changed.

Look Up Your Neighborhood Crime Rates

If you're moving from a low crime area to a high crime area, it's very likely that you're going to see your auto insurance go up -- and the opposite is also true. But keep in mind that there are two major types of crime: violent crime and property crime. For a large part, auto insurance companies only concern themselves with property crime, which vehicular theft and property damage both fall under. Crime rates are often calculated by neighborhood or city, so simply moving to another neighborhood that is a little safer could be enough to lower your insurance premiums.  

Prepare for a Recalculation

Whether your current insurance agent will be modifying your policy or you'll have to switch policies entirely, it's likely that your rate is going to be entirely recalculated. This also means that your MVR (motor vehicle record) will likely be pulled, as occurs whenever any new policy is created. If you've had any recent tickets, accidents or other issues, you may find that your insurance policy premiums go up. 

An insurance agent can help you iron out any problems in advance. You never want to be caught outside of your coverage area or without auto insurance. And if you're considering a move in the distant future, it might be a good idea to get all of your insurance quotes beforehand, just to make sure that you know how your budget will need to change.