When You Move from Your Household, Car Insurance Rates Might Change
Car insurance rates change when you move, particularly if you change states or ZIP codes. Save up to 25% with discounts for being a good student.
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Joel Ohman
Founder & CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...
Founder & CFP®
UPDATED: Jul 11, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jul 11, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- If you’re a young driver and getting off your parents’ insurance plan and onto your own, you can expect your rates to increase
- Moving to a different state or even a different neighborhood may have a positive or negative affect on your car insurance premiums
- There are several discounts that may apply to young drivers. Check with your insurance company to see if any apply to you
Teens Moving from the Household: Car Insurance Rates will Probably Increase
If you are a teen or a young adult moving away from your parents’ household, you can expect to see an increase in your car insurance rates.As mentioned above, this is especially true if you were previously on your parents’ car insurance policy and you are buying one of your own.
The good news is that the older you get, the less expensive your car insurance will be, as long as you maintain a good driving record. The bad news is that you typically don’t see a significant drop in rates until after you turn 25.
Even as a young driver, there are some discounts that you can qualify for in order to help you save money on your car insurance.For example, if you are a student, maintaining good grades is an excellent way for you to save money on your insurance. In addition, buying a safer car with anti-theft devices and extra safety features will help to save money.
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Moving from Your Household: Car Insurance Rates May Change
When you are moving from home to a new place, your car insurance rates could increase, decrease or stay the same. Yes, this is a bit vague, but there are a couple of things that your insurance company will consider when you move.
- First of all, where are you moving? When you move to a new neighborhood, it is possible that your rates will stay the same if you are living in the same zip code. Even so, your insurance company will still check the area in which you are living to determine what the average accident rate is there.
- If you move to a new zip code then you could see an increase or a decrease in your rates. Typically, if you are moving somewhere near where you were living previously, those rate changes will be minimal unless you move to a neighborhood with high auto theft rates and vandalism.
If you didn’t already know, car insurance rates vary – sometimes dramatically – from state to state. If you move out of state you could see a dramatic increase or decrease in your rates depending on where you move from.According to the National Association of Insurance Commissioners the states with the highest insurance rates are:
- Washington DC (not really a state but it applies)
- New Jersey
- Louisiana
- New York
- Florida
- Rhode Island
- Delaware
- Nevada
- Massachusetts
- Connecticut
The states with the lowest insurance rates are:
- North Dakota
- Iowa
- South Dakota
- Nebraska
- Idaho
- Kansas
- Wisconsin
- North Carolina
- Maine
- Indiana
If you move from North Dakota, where the average insurance rate is $516 a year to Washington DC where the average insurance rate is $1,100, you will see a major increase in your insurance rates. These are liability-only averages.North Dakota average for liability, comprehensive and collision is $1,200 annually and in Washington, it is $2,300.
When Changing Your Household, Car Insurance Savings are Important
If you are moving to a new state, especially if you are moving to one of those states with the highest rates, you need to find ways to save money.
Every insurance company has different discounts for you to take advantage of.
You need to be aware of what discounts you might qualify for. Taking a few minutes to find a comprehensive list of all the discounts available is well worth your time.There are some common ones, such as safe driver, older driver, loyalty discounts and more, but there are quite a few that are specific to certain companies.In addition, shopping around ensures that your rates are the lowest that you can buy. Using a free quote tool is a great way for you to shop around without having to spend your time visiting multiple sites.Enter your zip code now to get your free online car insurance quotes!
Case Studies: When you move from your household, car insurance rates might change?
Case Study 1: Teen Moving From the Household
When a teen or young adult moves away from their parents’ household and obtains their own car insurance policy, they can expect an increase in car insurance rates. The transition from being on their parents’ policy to having their own coverage often leads to higher premiums.
However, there are discounts available, such as good student discounts, which can help offset the increase and save up to 25% on car insurance.
Case Study 2: Moving to a Different State
Moving to a different state can have a significant impact on car insurance rates. Rates vary from state to state due to factors like crime rates, traffic congestion, and accident frequency.
For example, moving from a state with lower insurance rates, such as North Dakota with an average rate of $516 per year, to a state with higher rates like Washington, D.C. with an average rate of $1,100, can result in a major increase in insurance costs. It’s essential to be aware of these variations and consider them when planning a move.
Case Study 3: Mitigating Rate Increases
While car insurance rate increases may be unavoidable when moving, there are strategies to mitigate potential hikes. One effective approach is to take advantage of available discounts. Different insurance companies offer various discounts, and being aware of them can help reduce the impact of rate changes.
Additionally, shopping around and comparing quotes from multiple insurers ensures that you get the best possible rates for your new location.
Frequently Asked Questions
Why might my car insurance rates change when I move from my household?
Car insurance rates can be influenced by various factors, and one of them is your residential address. When you move from your household, several elements can impact your car insurance rates. These include changes in location-related risk factors, such as crime rates, traffic congestion, and accident frequency. Insurance companies assess these factors to determine the likelihood of an accident or theft occurring in your new area, which can result in a change in your car insurance rates.
Will my car insurance rates always increase when I move?
Not necessarily. While moving to a new location can affect your car insurance rates, they may not always increase. It’s important to understand that car insurance rates are determined by a combination of factors, including your driving history, vehicle type, age, and the insurance company’s own policies. While moving to an area with higher risk factors could result in increased rates, moving to an area with lower risk factors may lead to lower rates or no change at all. It’s best to consult with your insurance provider to get a clear understanding of how your move might impact your car insurance rates.
How can I find out if my car insurance rates will change after moving?
To determine if your car insurance rates will change after moving, it’s recommended to contact your insurance provider directly. They will have access to the necessary information and can provide you with the most accurate details regarding potential rate adjustments. It’s a good idea to inform your insurance company about your move as soon as possible to ensure your policy remains up to date and your coverage is appropriate for your new location.
Can I keep my car insurance policy when I move to a new state or city?
In most cases, you will need to update your car insurance policy when you move to a new state or city. Each state has its own specific insurance requirements, and coverage limits and regulations can vary significantly. It’s essential to review your policy and consult with your insurance provider to ensure that your coverage meets the legal requirements and adequately protects you in your new location. Your insurance provider can guide you through the necessary steps to update your policy and make any adjustments as needed.
Are there any ways to mitigate potential car insurance rate increases after moving?
While certain factors that influence car insurance rates, such as location-related risks, may be beyond your control, there are steps you can take to potentially mitigate rate increases after moving. Some strategies include:
- Research and compare car insurance providers in your new area to find the most competitive rates.
- Maintain a clean driving record and practice safe driving habits.
- Consider bundling your car insurance policy with other insurance policies, such as homeowners or renters insurance, as it may lead to discounts.
- Install safety features in your vehicle that may lower the risk of accidents or theft, such as anti-theft devices or driver-assistance systems.
- Take advantage of available discounts offered by your insurance company, such as good student discounts, multi-vehicle discounts, or low-mileage discounts.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
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Joel Ohman
Founder & CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...
Founder & CFP®
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.