How Moving House Could Affect Your Car Insurance Premiums

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.¹

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 premiums can increase (or decrease!) when you move address.² 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.

How do insurers assess the risk?

Insurers use historical data to assess the risk of insuring your car.³ They look at a huge 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.⁴

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.⁵

However, if you don’t drive all that much, and you’re considering Comprehensive Car Insurance, you 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.⁶ 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 immobiliser to reduce the risk of theft or damage.⁷
• 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.⁸ 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.⁹

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 wide 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!

^{Sources:
1 Budget Direct - How Much Does Car Insurance Cost?
2 pd.com.au - 5 Tips for Your Car Insurance Renewal
3 Insurance Council of Australia - Productivity Commission Inquiry into Data Availability and Use (Page 3)
4 Budget Direct - Insuring your car
5 As above
6 Everyday Insurance from Woolworths - Everyday Drive Less Pay Less Insurance
7 Budget Direct - How Much Does Car Insurance Cost?
8 Budget Direct - Claiming on car insurance
9 Moneysmart - No claim bonus on car insurance}