Why Does Change of Address Increase My Auto Insurance Rate?
I have to pay a $35 premium extra because I made a change of address. What would happen if I change my address back to the old one to avoid the increase? I only have 3 more months out of my insurance contract in Wilmington DE, plus I’m planning to buy a different insurance now in Queens NY. What are the consequences of living in a new home but car my insurance is from the old address?
Jenny
Your insurance rate is based on the risk your new address in Queens, New York represents; if there are more accidents or thefts in your new city, you will pay a higher premium.
If you’re going to lie about this to your insurance company in Wilmington DE, you’re a candidate for committing insurance fraud. This has serious consequences like the possibility of your claims being denied, paying fines, etc.; so it’s as good as not having insurance at all.
Many car insurance companies are in the practice of determining basic rates, not only basing it on the driver’s record, but more importantly on the buyer’s zip code. The reason behind this is that, in some areas, statistics show a greater number of collisions and claims filed. Perhaps, insurance companies believe that bad drivers seem to congregate in certain areas.
You’ve already changed your address so there’s a red flag you if you changed it back to the old address. And if you don’t do a change of address, NY DMV will update it for you in about 60 days, there’s really no way around it. When you switch companies, ask them what tips they can give you on keeping your premium low. Good luck.
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