How Moving House Could Affect Your Car Insurance Premiums

Content OageHero Image CRO Overlay Image

Written by

|

Edited by

|

Reviewed by

Updated 09/01/2024
What changed?
Reviewed by Toby Hagon and expert tip added.
|
Fact checked
Our aim is to help you make better informed decisions. That’s why iSelect’s content is produced in accordance with our fact-checking and editorial guidelines.
|

Find out more about how we make money.

View our Privacy Policy.

Written by

Francis Taylor

Updated 09/01/2024

What changed?

Reviewed by Toby Hagon and expert tip added.
Our aim is to help you make better informed decisions. That’s why iSelect’s content is produced in accordance with our fact-checking and editorial guidelines.

Reviewed by

Toby Hagon

Find out more about how we make money.

View our Privacy Policy.

Compare Car Insurance Policies

Save time and effort by comparing a range of car insurance quotes with iSelect

X

Why does my address matter?
How do insurers assess the risk?
Does it matter where my car is parked?
Can my commute affect my premium?
What else can I do to reduce my premium?

Why does my address matter?

How much you pay for Car Insurance all comes down to risk. While every insurer takes their own approach to assessing risk, location is something that almost all of them keep in mind.

This is because some areas see more theft and accidents than others, which also means they’ll see more claims. As a result, your car insurance premium can increase (or decrease!) when you move address. The most important thing is to inform your insurer of the move. Failing to do so could lead to any future claims getting rejected or reduced.

Helpful Tip:

Once you know you’re moving house it’s a good idea to give your insurer a heads-up to ensure you’re properly covered. Besides, it’s one less thing to do on moving day when you’ll likely have no shortage of challenges and surprises!

Toby Hagon

Motoring Journalist

How do insurers assess the risk?

Insurers use historical data to assess the risk of insuring your car. They look at a range of past events and trends. This means your premium might change when you move from a quiet country town to a busy city, or vice-versa.

Premiums may also differ depending on the state or territory you live in. If you’re moving cross-country, it’s a good idea to check with your insurer and see if this will affect the cost of your car insurance. For example, car insurance costs can be different in NSW than in other states.  

Does it matter where my car is parked?

Moving into a new home with a locked garage can sometimes reduce your premium. Garages not only help to protect your car from theft or vandalism, but they can also prevent weather-related damage, too.

If you’re parking on the street at your new house, this can add to the risk of car theft, meaning your premium could go up. Covered carports don’t provide the same level of security as a lockable garage, but they may earn you a discount on your premium compared to street parking.

Can my commute affect my premium?

This really depends on the insurer. When getting a quote, some insurers might ask how often you drive your car. Others will simply focus on how you use your car. For instance, if you use your car for business purposes, you might end up paying a higher premium than someone who only drives for personal use.

However, if you don’t drive all that much, and you’re considering Comprehensive Car Insuranceyou might be eligible for a ‘low kilometre policy’. These policies offer extensive cover at a reduced price for people who drive below a certain limit (e.g. 15,000km) each year. So if your new commute is significantly shorter, it might be worth considering one of these policies.

What else can I do to reduce my premium?

No matter where you’re moving, there are a bunch of extra steps you can take that might help reduce the cost of your car insurance. For instance, you might:

  • Fit your car with an alarm or GPS tracking device to reduce the risk of theft or damage
  • Consider increasing your excess. This is the out-of-pocket amount you’ll need to pay for an ‘at-fault’ claim: an accident where you were the one at fault, where nobody was at fault, or where another driver was at fault but their details can’t be obtained. A higher excess means you’ll pay more for at-fault claims, but it will usually reduce your premiums.
  • Protect your no-claim bonus. You might be eligible for a discount on your premiums that increases every year that you don’t make an at-fault claim.  

Shopping around can also be a great way to find a car insurance policy at a more suitable rate. We can also help on this front. With us, you can compare Car Insurance policies from a range of providers online. Or, if you prefer the personal touch, talk to one of our friendly consultants on 13 19 20 to discover what’s out there!

Get started on comparing car insurance policies!

Save time and effort by comparing a range of car insurance quotes with iSelect

iSelect does not compare all car insurers or policies in the market. The availability of policies may change from time to time. Not all policies available from iSelect’s providers are compared by iSelect and due to commercial arrangements, area or availability, not all policies compared by iSelect will be available to all customers. Some policies are available only from iSelect’s call centre or website. A number of our participating general insurance brands are arranged by Auto & General Services Pty Ltd ACN 003 617 909 on behalf of Auto & General Insurance Company Limited 111 586 353, both of which are related entities of iSelect Limited. Our relationship with those companies does not impact the integrity of our comparison service. Click here to view iSelect’s range of providers.

iSelect General Pty Limited ABN 90 131 798 126, AFS Licence Number: 334115. Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice iSelect gives you, having regard to your personal situation, before acting on iSelect’s advice or purchasing any policy. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect. iSelect receives commission for each policy sold that is a percentage of the premium or a flat fee. Ask us for more details before we provide you with any services.