Why do rates change between states?

I'm currently insured with Allstate in Texas. I'm moving to Louisiana at the end of the month. I've noticed that my insurance rates are significantly higher with my new address—I'm still the same person with the same personal background, so this doesn't make sense to me. Why was there a change?

“Moving is a huge life change that can impact you beyond an address change!
Insurance rates can change between states due to insurance regulations and the minimum amount of car insurance required. Each state has its own required amount of insurance. If you’re moving to a different state, you may need to raise your insurance coverage to meet that state’s minimum requirements, which can often cause a rate increase.
Car insurance is not federally regulated, meaning every state’s Department of Insurance sets its own rules and regulations.
Your personal information also still impacts your rate, even if you stay with the same insurance company. The new address you move to may have a higher claim or accident rate. If so, you’ll see an increase in your insurance costs.
To determine whether you’re paying a fair amount for insurance, you can look at the average cost of car insurance. If you are paying more than the average, it may be worth looking into other companies using your new address.
Insurance shopping can be time-consuming and frustrating, though, especially if you’re moving on top of everything else. If you want to compare rates quickly and easily, check out Jerry. We’ll get you multiple customized quotes from top insurance providers so that you can choose the best price for the coverage you need, saving you time and money.
Enjoy your new home!”
Emily Maracle
Answered on Sep 10, 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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