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Does Moving Affect Car Insurance Premiums?
Does Moving Affect Car Insurance Premiums?
Written by
Kervin Mathew
Edited by
Ellie Garran
Reviewed by
Toby HagonCompare car insurance policies the easy way
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Long story short
Insurers consider local crime rates, traffic density, and accident stats when pricing your policy
So, your new address can push your premium up or down.
Moving interstate may impact your insurance
Insurance premiums and coverage can vary by state – so give your provider a heads-up.
You can let your insurer know about your move on the phone or online
Your claim might be denied if you wait too long to update your policy.
How does my address affect my car insurance premium?
How much you pay for car insurance all comes down to risk. While every insurer takes its own approach to assessing risk, location is something that almost all of them keep in mind.
Some areas experience more theft and accidents than others, which means they’ll also see more claims. As a result, your car insurance premium can increase (or decrease) when you move address.
Your insurance premiums could be affected by the following factors related to your location.
Your suburb
Insurers might assess how safe your car is based on how dense the traffic is near your new house or even the crime rate in your suburb. For example, a house on an arterial road with lots of fast-moving traffic or one with frequent reports of vandalism or car theft are red flags that could raise your risk level and thus your premium.
Where you park overnight
Moving into a new home with a lock-up garage can sometimes reduce your premium. Garages not only help protect your car from theft or vandalism, but they can also minimise weather-related damage.
If you’re parking on the street at your new house, it could add to the risk of car theft and raise your premium. Covered carports don’t provide the same level of security as a lock-up garage, but they could fetch you a lower premium compared to street parking.
The distance you drive per year
When preparing a quote, some insurers might ask how often you drive your car. Others may simply focus on how you use your car. For instance, if you use your car for business, you might end up paying a higher premium than someone who only drives for personal use.
That said, if you don’t drive all that much, you might be eligible for a ‘low kilometre’ policy. These policies typically offer a reduced premium for people who drive below a certain limit, say less than 10,000 km, each year. So if your new commute means you to get to drive less, it might be worth considering one of these policies.
Urban vs regional areas
If you move to an urban area, you might pay a higher premium than you would for a regional area because of the higher traffic density, accident rate, and crime rate.
That isn’t to say that moving to a less-populated, slower-paced regional town would necessarily result in lower premiums. Insurers are also likely to consider the quality of surrounding roads and how extreme weather is likely to affect rural areas.
State or territory
Premiums may also differ depending on the state or territory you live in. If you’re moving across the border, it might be a good idea to get in touch with your insurer and see how it will affect the cost of your car insurance. Some states or territories may even be outside an insurer’s coverage area.
Do I need to tell my car insurance provider if I move house?
Yes. Given that your location can have a pretty big impact on your car insurance premium, it’s a good idea to let your insurer know about your new address as soon as (or even before) you settle into you new digs.
If you forget to inform your insurer that you’ve moved and it so happens that you need to make a claim, no sweat. Provided you haven’t left the state or territory and it’s not too long after you moved, you may still be able to make a claim after an accident. You might just need to pay the difference between your previous premium and the new one.
Updating your address can be as easy as getting on the phone or online.
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
Does moving to another state or territory affect my car insurance?
So, you’ve decided that where you’re living is too hot or too cold, has too many grubs or too few white sandy beaches, and you’re ready for a big change. Well, that’s how your insurer’s going to see it, too – as a big change!
Your premium could vary depending on the state or territory you’re moving to, so you’ll need to let your insurer know your new address as soon as you can. Here are the other steps to get on the road in your new state.
Buy compulsory third-party (CTP) insurance
It helps to do some homework on the CTP requirements in your new state or territory. For example, in Victoria, CTP insurance is included in your rego while in NSW, you’d purchase it separately as a ‘Green Slip’.
Get your car checked for safety
More than just red tape, a vehicle safety check is crucial when moving between states, especially if you’ve modified your car. In most states, you’ll need a valid safety inspection report or roadworthy certificate to be able to register your car.
Transfer your registration
How you transfer your car’s registration may vary between states. Make sure you have all the documents handy for the transfer, including application forms, proof of registration, and safety reports. You might even be asked to hand over your previous number plates.
What else can I do to reduce my car insurance premium?
No matter where you’re moving, there are steps you can take that might help reduce the cost of your car insurance.
- Fitting your car with an alarm or GPS tracking device may help reduce the risk of theft or damage, which in turn lowers the risk for insurers.
- Consider increasing your excess. A higher excess means you’ll pay more if you make a claim, but it will usually reduce your premiums.
- Shopping around can be a great way to find a car insurance policy at a more suitable cost.
Move on to better car insurance
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