Why did my car insurance skyrocket after trading in my car?

I was leasing a 2019 Audi A3 and recently traded it in for the 2021 model. My premium has gone up $400. The dealership said it was because I didn't have full coverage on my previous vehicle, but I'm almost positive I did. I also recently moved from a suburban area to a city. Why did my rate change?

Answer
“If your premium has increased significantly, you should reach out to your insurance company directly. They will be able to provide you with the exact reasons why your rate increased.
The biggest factors that can impact rates are a change of address and change in coverage. If you previously only had liability insurance and now have both comprehensive coverage and collision coverage, your rate will increase significantly.
Where you live can also impact your rates. If you recently moved to a bigger city, your insurance company may consider you to be at higher risk of filing claims.
Once you have a better idea of why your rate changed, you can request quotes from other carriers. Getting car insurance quotes online is a great way to comparison shop and ensure you’re paying the lowest price for insurance.
If you want cheap quotes fast, sign up with Jerry. This free app can find the right policy for you in seconds! “
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Emily Maracle
Answered on Apr 20, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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