How to Manage Your Car Insurance During a Move

Relocating to a new place invites many changes into your daily life. Staying ahead and preparing for your relocation is a good idea. After all, there are several things that need to be taken care of; your car insurance is one. Moving to a different place involves a lot of changes in paperwork regarding your address, bank documents and bills. Your insurance also needs to be updated, since the change in your postal code will impact your car insurance premiums. The reason is that every province has different requirements that affect the cost of your policy.

Updating Car Insurance Due to Change in Address

Moving within your home province is easier than a cross-country relocation. In this case, you do not need to get a new title and registration, and the minimum coverage requirements remain the same. However, you still need to inform your insurer, as even the slightest change in your postal code can affect the costs of your premiums.

Reasons to Change Car Insurance

Whether you are moving to the next town or another province, your car insurance costs are likely to rise. This is because the cost of car insurance is predetermined.

Some factors that affect your policy:

  1. Your driving record
  2. Your age
  3. The amount and coverage type
  4. How frequently you drive
  5. Your car
  6. Your postal codes

Insurance providers calculate your premiums and coverage level, and changes to your postal code play a major role in calculating your risk and insurability. For this reason, any change in your current circumstances needs to be immediately disclosed to your insurer. Not doing so could lead to rate evasion, and you could be charged with fraud.

Definitely get in touch with your car insurance provider before making a move. They may suggest you keep your current policy, with just your address changed and a few small amendments for extra protection. For instance, an area that is prone to earthquakes will require an additional endorsement to cover the risk. If your new address is closer to your workplace, chances are your insurer will reduce your rates, as the daily average mileage of your car will be reduced.

There are instances, however, where moving to a small town can reduce your rates as well.

Learning About the Requirements of the New Province

Do you always have to update your car insurance when you relocate to a new province? Quite possibly, yes. Every province has its own rules and regulations and will require an increased amount of coverage. You may need to change your policy or even your insurance provider according to the standard level of coverage set by the new location. As mentioned earlier, there are places where the coverage limit requirement may be lower than your current policy and you may need to lower your premium. However, lowering your coverage limit increases your risk. Therefore, always consider the pros and cons of every option before changing your policy.

There are ways to learn about the requirements of your new location, but do not wait until the last moment to do so. Before you relocate and ship your car, you need to get all your documents ready. Driving without insurance is illegal in any province. To avoid a gap in coverage, inform your insurance company about the move as soon as possible. Also, make sure that your insurance provider knows how your coverage will change in your new province.

Requirements of a “No-Fault State” InsuranceM

No-fault insurance, or personal injury protection as it is called, is the type of auto insurance that covers all medical bills, income losses and even funeral expenses occurring due to a car accident. And this is done regardless of negligence. This is different from a traditional at-fault state, where to avail yourself of the insurance you must prove that the other driver was negligent.

If you happen to move from an at-fault state to a no-fault state, you must update your car insurance coverage. No-fault insurance is only available to a handful of provinces in Ontario, including Alberta and British Columbia.

Other Factors That Potentially Impact Your Car Premium

As you have guessed, car insurance providers consider a lot of factors when determining your premium. This includes your ability to drive, traffic patterns, crime rates, and frequency of natural disasters in your location. As these factors differ from province to province, you need to update your policy accordingly. People living in potentially crime-ridden areas will need to increase their coverage against potential vandalism or theft.

Purchasing a New Car Insurance Policy

You can acquire car insurance quotes from different providers before making a choice. Insurance costs vary a lot from provider to provider, due to each company putting emphasis on different factors. You can even get insurance quotes free from many providers by visiting their website.

Additionally, when looking to upgrade your insurance policy, you will need to register your car in the new location. The requirements for this also differ from province to province, but one thing remains the same: you need to get this done within the first month of relocating. By registering your car in your new province and acquiring a new driver’s license, you can make the moving process a lot less stressful.

Moving a long distance is a complicated process. To get your car from point A to point B, you need to consider various auto transportation services. Taking care of the insurance beforehand will make it that much easier.