Whether you’re moving just down the street or across the country, your auto and homeowner insurance will likely change. It’s a good idea to check insurance costs when exploring new neighborhoods, since even small differences in location can affect your premiums. Here are some factors that influence auto and home insurance rates depending on where you live.
Auto insurance
Your auto insurance rates depend heavily on where you live. If your new neighborhood is considered “high-risk” by your insurer, your premiums might increase. Factors that affect risk include population density, traffic, crime rates, weather events, and how often claims occur in the area.
Moving to a big city usually means higher auto insurance because of increased vehicle theft, vandalism, and traffic. But moving to a rural area can also raise rates if there are more deer, frequent tornadoes, or if your daily commute gets longer (more driving means more chances of accidents).
According to the Insurance Information Institute, states with the highest average auto insurance premiums include Louisiana, Michigan, and Florida. The least expensive states are North Dakota, Maine, and Iowa.
Regardless of where you move, be sure to inform your insurance company as soon as possible to avoid billing issues or denied claims. If you’re moving out of state, you’ll need a new policy, so it’s best to contact your agent ahead of time.
Homeowners insurance
Like auto insurance, several factors affect whether your new home’s location is seen as “high-risk” by insurers.
Age of home
Older houses often have wiring that may not meet current safety standards, which can increase the risk of electrical fires. Plumbing in older homes might also be outdated and more likely to cause costly problems. Plus, older neighborhoods sometimes have aging sewer systems that raise the risk of backups. Because of these factors, insurance premiums for older homes may be higher.
Proximity to a fire station
Homes within about five miles of a fire station usually get better rates because help can arrive faster in an emergency. But if your new town depends on volunteer firefighters, premiums might be higher since volunteer departments often have fewer resources and slower response times. According to Coverage.com, living in a big city with higher crime rates can increase insurance costs, no matter how close you are to a fire station, because insurers consider risks like theft and vandalism separately.
Location
Areas prone to natural disasters—like tornadoes, wildfires, hurricanes, or hailstorms—are often labeled high-risk, which can raise insurance costs. Coastal homes, in particular, may see higher premiums due to more frequent and severe hurricanes. To help keep your insurance costs down, it’s a good idea to think about avoiding high-risk areas when you can.
Talk to your broker
Moving can be stressful. We’re here to help you understand how your move might affect your insurance. Reach out to us anytime.
