Surprise! Moving just a few blocks can affect your insurance
There’s a lot to anticipate when you’re moving house. There are moving trucks to load, boxes to unpack and lots of paperwork to deal with. From updating your employer to changing your address on your bank documents, there is much to do, but one thing you might not think about is how it might affect your car insurance.
That was certainly the case for Toronto resident Steven Baker. A few days after moving Baker got in touch with his auto insurance provider to let them know he had moved a few blocks north, and was flabbergasted when they informed him the 4km move would see his policy shoot up about $600. "I was shocked," Baker told CBC. "I asked them why. Nothing had changed. I hadn't had any accidents."
However, his provider, TD Insurance, told him the increase was simply down to his new post code. So we decided to investigate, how can changing postcodes affect your insurance rates?
Why do rates change based on postcode?
Although many people think it’s a myth, in reality when you change address your insurrer has to change the way they calculate the premium you have to pay. Insurance companies work by assessing various risks applicable to you and your car. Now, this isn’t always a bad thing-sometimes your new postcode might actually see your payable rate fall due to a decrease in risk. However, it can also see your premiums rise-perhaps you live in an area with a busy intersection that is prone to accidents, or there have been multiple reports of car theft in the area.
Whether you’re headed to a different province, or just a couple of streets, your new location may also see your insurer suggesting some policy adjustments. For example, if you move to an earthquake-prone area, they may suggest investing in extra cover to include any damage as the result of a natural disaster. On the flip side, perhaps you have moved closer to your workplace and are driving less as a result-this may spark a low mileage discount which could save you a pretty penny.
Do I have to tell my insurer?
It is vital that you are honest with your insurer at all times. On the one hand, yoru hoenest may well reward you with a nice discount on your policy, on the other, it could see you being condemned for fraud due to rate evasion.
Does it cost money to change address on my car insurance?
Most insurance companies will le tyou change personal details for free, however there could be an administration fee. The best thing to do is get in touch with your insurer and find out what their terms and conditions are.
Does It Cost To Change Address On Car Insurance?
Most insurance companies do not charge a fee to change your address on car insurance policy. You may have to check with your insurance provider when you sign for the policy as to what are their administration charges. If your new address will cause your premium to reduce, paying a small admin fee could be worth the extra savings.
How do I change my address?
It should be a pretty straight forward process and most insurers are happy to help. It is easier to do it over the phone, however depending on who you took out your policy with, there may even just a be form to fill out online. It may take a few for your insurer to review your new address and update your policy.