Understanding Insurance Policies

Posted on: 19 June 2018

Moving can disrupt your car insurance coverage and policy, and there are a few changes you may have to make. Here are a few things you may have to do to ensure that your insurance coverage is still adequate and affordable after moving:

Updating Your Address

The first thing you must do after moving is to update your address; inform your insurance carrier about your move so that they can update your policy accordingly. This is a requirement, and you will be in violation of your insurer's terms and conditions if you don't do it. Your insurance company needs to know where you live because your neighborhood influences the type and extent of risks to which you are exposed.

Adjusting Liability Limits

A change in circumstances may require you to adjust your liability limits, either upwards or downwards, when you move. For example, you will need to increase your liability limits if you have moved to a state with higher liability limit requirements. It may also be wise to increase your liability limits if you have acquired more expensive assets.

Adding or Removing Drivers from Policy

You may also need to add more drivers to your car insurance policy or remove some drivers from the policy after a move. For example, if you have bought a multi-generational home and invited your parents to live with you, it may be wise to consolidate all the drivers under one policy. Another example is when you move out of your parent's home, in which case you will need to be removed from their policy.

Getting New Quotes

Since location is one of the factors that determine car insurance rates and insurance companies give it different weights when calculating premiums, it may be a good idea to get a few rate quotes after your move. For example, you may find that a different insurer has better rates for your new location than your existing carrier.

Switching Carriers

Lastly, you may also have to switch insurance carriers after your move. This may be because

• Your current insurer doesn't do business in your new area
• You want to consolidate your auto insurance coverage with other lines of insurance (such as homeowner's insurance)
• You have received a better offer from a new insurer.

Are you planning to move soon? If you are, give your insurance agent a call to help you figure out what you should do.