Aside from other administrative purposes, your address is important to your auto insurance company. It has a huge influence on how much payment you make in premiums. In different ways, your address is important, but it can also affect your auto insurance. Changing your address affects your auto insurance.
Auto insurance companies use your address to determine your auto premiums. Having a change of address can adjust the level of risk you have. It can also increase or decrease your rates depending on where you move to.
When applying for an auto insurance policy, insurers will request your address. Aside from knowing where to send your bills and information, your address is needed to determine how much coverage you need. With every piece of information, such as claim filings, accident reports, and other relevant information they gather, they can produce the appropriate premiums for you.
3 Ways Changing Your Address Affects Auto Insurance
There are different ways your address can affect your auto insurance. As stated earlier, your address is important to your auto insurance, and a change of address can affect your insurance by:
Population Density
Auto insurance in suburban and rural areas is more affordable than big-city insurance. This is because big cities are tight and have more traffic and potential accidents than rural or suburban areas.
Crime Rates
If your new address has a high crime rate, it may affect your auto insurance. Auto insurance companies consider the rate of vandalism and stolen cars specifically to determine your insurance policy premiums.
Car owners in big cities are forced to keep their cars in a safe place, and those who cannot afford a parking spot or garage are forced to park their cars on the street, leading to a high risk of damage.
State-Mandated Liability Insurance
The number of minimum liability insurance you are required to have to operate a car varies by state. Crossing state lines may affect your insurance policy premium.
Some states require drivers to have personal injury protection (PIP), while other states don’t. The increase in your overall minimum insurance requirement the higher your rates may get. This is why it is advisable to update your coverage before changing your address.
Do I have to change my auto insurance when I move States?
When you move states or change addresses, it is needed for you to change auto insurance. This does not mean that you need to get new insurance; instead, it means you will be informing your auto insurer that you have changed your address.
However, if your insurer does not give you coverage at your new address, you will need to get a new auto insurance policy. Getting a new auto insurance policy at your new address is required to be done as quickly as possible, or else you will have a hard time registering your car in that location.
What happens if I don’t change my address on my auto insurance?
This can cause a big problem for you. High insurance rates are already a pain; deceiving an insurance company can cause a bigger problem for you. You may be held criminally liable. If you move to a new address within the same city or to the next town from your previous location, insurers may understand if you forgot to change your address.
In a case where you intentionally deceive your insurer, you will get in big trouble; you will be denied an insurance claim and charged with insurance fraud. To avoid this, be transparent with your auto insurance company and inform them on time when changing your address.
How to Update My Auto Insurance Address
When changing your address, you will need to update your insurance address. Updating your auto insurance can be done through your insurer. Below are the basic steps to take to update your auto insurance address:
Get in touch with your insurance company.
Contact your insurance company directly and inform them about your change of address update. Before doing this, make sure you have the new address along with other important details needed to carry out the process. You can simply do it through a phone call or the online portal, but it’s better in person.
Review your policy
During your address updating process, grab the chance to check through your entire policy and other information as well as whether drivers and listed vehicles are still accurate. By doing this, you are sure that your coverage is in line with your current situation.
