If you decide to move, especially out of state, one thing you have to attend to is your car title and registration. Most states will give you 30 days to switch over to your new residence, including changing your driver’s license. Depending on where you were living and where you are moving to, your car insurance rates can change dramatically. Generally speaking, moving from a less populated area devoid of high crime into a major city will have your car insurance company raising your rates, much to your chagrin.
Several permanent factors decide what your car insurance rates will be, regardless of where you live. Insurance providers will first look at your driving record to determine if you are a safe driver. If you are in a higher risk bracket, meaning you have filed many claims or have had more driving accidents, this will result in you having a higher car insurance rate. A car insurance company will also look at your credit history. The lower your credit score, the higher risk you will be considered to insure — also resulting in higher insurance costs. The type of car you drive will also be considered when a company gives you an insurance quote.
Now is when the location-specific criteria come in. A car insurance company will then look at the statistics for the area in which you live. An outlying suburb with low crime will get you a much better rate than a place in the heart of the city, close to major high crime areas or heavy traffic. Car insurers base the likelihood of you filing a claim based upon your zip code. Throughout the years they have increasingly improved their ability to pinpoint areas that are the most likely to have a certain risk factors. If you are moving for a job or some similar reason, you need to be aware of what the costs will be in your new home.
There is little you can do to change the factors that affect your car insurance rate. If you can’t afford the luxury of moving to a more desirable location, you are stuck with everyone else who has to pay the high premiums associated with living in a high-risk area. If this is a case, discuss discounts you may be eligible for with your car insurance agent. Many times you can minimize your premium by having certain safety features on your car or by negotiating a lower rate based on your loyalty to the insurance company. But, regardless of the discounts you are eligible for, transferring your title and registration to a new state will have an effect on your insurance rates. When considering living expenses in your new home, this is something you should consider.