Does My Car Insurance Cover Me if I Move to a Different City?

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Does My Car Insurance Cover Me if I Move to a Different City? (Photo: @ako via Twenty20)
Moving is always a major upheaval, even if it is only a few miles away to a different city. While there are many issues to worry about in a move, car insurance does not have to be one of them. Car insurance companies will cover you in the event that you, but there are several important things to keep in mind as you plan make the transition to life in a new city. Here’s how to make sure you’re still covered when you move cities, and what to watch out for.

Stay covered after moving to a new city

The good news is that you are still covered if you move to a different city. This is because your car insurance company has signed on to cover you, and a move to another city does not make a contract you have void.
That being said, you need to notify your car insurance company of your move immediately. This allows them to update your data in their system, so that they have a way to get in contact with you and provide any needed information.
Additionally, notifying your insurance of them move ensures they have an accurate report of where your vehicle is being garaged. The company must have on file the location where your vehicle ends up each night, and failure to let them know these details could even result in a denial of a claim should an accident occur.
Don’t take the chance of this happening and be sure to make your insurance aware of your move immediately.

Beware an increase in car insurance rates

While it is convenient that you can stay covered after moving to a different city, the possibly bad news in this case is that you may experience a change in rates. It is not altogether bad news because you may in fact notice a decline in your rates, but you should be prepared for the chance of an increase as well.
As all insurance rates are in part determined by zip code, changing where you live could result in pricing shifts in one direction or another. Certain zip codes are associated with higher crime rates, for example, which mean a greater chance of vandalism or theft, and a higher premium as a result.

Research the new city before you move

If you discover that a certain zip code has higher rates across all insurance companies, then having this knowledge may influence where exactly you decide to live not only because it will save you money on insurance but for safety and peace of mind as well.
On the other hand, if you are moving very close to work, then you could notice a significant drop in your rates since you will be driving far less than before. This could be in the form of a low mileage discount or a uniquely structured plan that fits your specific needs.
The best course of action, then, is to start shopping for comparisons when you plan to move. Since there is no guarantee that your current plan will continue to be the best option, it may be wise to switch to another plan that has a better rate in your new city.
Doing a little research will tell you whether or not your bill will change, and getting ahead of a rate hike could mean big savings for you over the long haul. Be sure, if you do decide to change, that you do have any lapses in coverage, which often result in higher premiums.