When you move, it’s important to update your car insurance as soon as possible. This is a stressful time where you have a lot to do and are spending money on a lot of other things. However, not updating your car insurance can have serious consequences. It needs to be at the top of your list. Here’s what you need to know. 

How Long Do You Have to Update Your Car Insurance?

You need to tell your auto insurance company the primary place where you park your car. This is typically your home address. The reason is because car insurance companies set rates based on where you keep your car. Location, therefore, matters. You might even get a lower car insurance rate by getting into a new home. Your insurance policy will tell you how many days or weeks you have to update your policy after you move.

Why Does Your Location Affect Your Auto Insurance Rates?

Every area has different rates of accidents, car thefts, and other factors that increase or decrease insurance claims. So, once you move into that area, you become a part of the risk in that area. Insurance companies base your rates based on where you are so that people who have lower risks can pay less for car insurance and people in higher risk areas share that additional risk. Depending on how your auto insurance company draws boundaries when it calculates premiums, even a move within the same neighborhood could change your rate.

What Happens if You Don’t Update Your Address?

If you don’t update your address, it could lead to your insurance company canceling your car insurance policy. If you’re involved in an accident or have your car stolen, the insurance company may not cover your claim if it finds out you were living somewhere else even if it hadn’t canceled your policy yet.

Can You Keep the Same Auto Insurance?

You can generally keep the same auto insurance company unless you move to a new state and they don’t do business there. You can also generally keep the same insurance coverage options, but some states have different minimums and required coverages than others. Even if you like your current insurance company, it’s a good idea to check for other quotes, because pricing differences could mean you could get a much lower rate somewhere else even if they always quoted you a higher rate before.

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