Location: Key To Auto Insurance Price

By Author: Michael Scott
Total Articles: 46
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Where you live is a cardinal point that auto insurance companies include in their assessment of the auto insurance rate you need to pay. Living in a high-traffic area for example would usually generate a higher rate of auto insurance payment. Going home to a rough neighborhood would also shoot that premium up. And the reverse of those would bring your premium payments down.

Such is the case, that if you're moving out of your current location, you need to update your auto insurance policy. Normally, if you would just be away for a short period of time, which means less than 6 months, there is no need to initiate changes to your auto insurance policy. However, you are still expected to let your auto insurance company know. Here below are some of the reminders with regards to your auto insurance when you move to your new residence.

Inform change of address, avoid policy invalidation
Since auto insurance rates are determined on the basis of your place of residence, a change of address should be communicated to your provider. If you fail to do so, you are running the risk of having your policy invalidated.
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... br />Zip code-based rate adjustment
Auto insurance risks are often zip code-specific. A zip-code that is a high-traffic area and is a high-crime zone may push your auto insurance rates up.

Lower mileage, pay less
Auto insurance companies count the fact that if you drive less, you have lesser chances of being involved in a traffic accident, resulting to fewer claims. You are then eligible for a rate cut if you find alternative ways of going and moving around. Work from home? Walk to the grocery? Take a carpool? All these matter.

Parking: protected or open?
If your vehicle is more susceptible to theft and vandalism by being parked on the street, your insurance company would give you less than favorable insurance rates. But if your new house is equipped with garage parking, your car insurance company may be able to offer you a discount.

Civil status change carries auto insurance shifts
Sometimes, moving house is due to a change in civil status status - whether getting married or getting divorced. Both can affect your premiums. Providers consider married people to be less likely to get into an auto accident. If you're moving house due to getting married, let your auto insurance company know. On the other hand, getting a divorce might also mean splitting from the policy contract which previously covers your family. It is better to discuss this matter with your auto insurance representative.

We cannot emphasize enough that where you live is key to your auto insurance rates. And not communicating any change to your auto insurance provider can invalidate your coverage. So while moving is stressful enough, spare yourself some stress from having an invalidated policy. Take time to call your agent, and discuss the points we have listed above in relation to your moving to a new location. You can never thank yourself enough from sparing you unforeseen difficulties that could crop up by not making your details current with your auto insurance provider.
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