Does Your Address Affect Your Car Insurance?

Find out if you’re overpaying on car insurance using our cost calculator! Save money by comparing quotes from over 30 of Canada’s top insurance providers!

The best part? It’s FREE!

does your address affect your car insurance

Your postal code doesn’t just tell the postman where to deliver your mail. It also tells insurance providers how much they should charge you for car insurance! If you live in downtown Toronto, your car insurance premium will be more than if you live in a rural area. This is because of the higher number of accidents that occur in urban areas.

In this article, we’ll discuss how changing addresses can affect your insurance rates.

Yes, when you change your address it affects the way your insurance company calculates your car insurance premiums. This is why it’s important to notify your insurer when you change your address. Annoying right? You could end up paying more for car insurance, but you could also save money.

For example, if you move closer to your workplace you could save money as you would be driving fewer annual miles. On the flip side, you could end up paying more in car insurance if you move to a postal code with more accidents or risk of natural disasters.

How does where you live affect your car insurance?

hamilton ontario

Let’s look at a couple of reasons why you changing your address can affect car insurance rates.

Local traffic

Your car insurance company will most likely take note of the area you live in when calculating your rates. Getting a house that’s close to heavy traffic or accidents, for example, downtown Toronto, may cause your rates to be higher than someone who lives in a rural area.

Insurance companies periodically analyze the number of accidents nearby as this also has an impact on car insurance rates. If there have been a significant increase or decrease in reported car accidents, then it is likely your premiums will be adjusted to reflect both current and potential future risk.

Commuting to work also affects your car insurance premium, though it is less direct than the postal code. The longer you are on the road for your commute, the higher risk you face of an incident which in turn leads to higher rates. Usually, this is taken into consideration if you’re driving more than 15 minutes each way.

Crime rates

Not only does the local traffic affect your car insurance rates, but also the crime in your neighbourhood. If there are more break-ins and thefts close to where you live, the premiums for your auto insurance could be greater than for someone who lives in a safer neighbourhood.

Do I need to change my address on car insurance?

If you’re changing your address, it’s a good idea to notify the insurance company. Your new postal code will be used to calculate your car insurance premiums. It is important to communicate any changes in your personal life that could affect the insurance policy, such as an address change. If you do not inform your insurer of such a change, it might be perceived as non-disclosure of facts which can lead to fraud charges.

What happens if you forgot to change your address on car insurance?

Failure to report address changes with your insurance company can lead to policy cancellation. If you are suspected of rate evasion, the consequences will be much more serious.

How do I change my address on my car insurance?

Typically, changing your address is a relatively straightforward process. Simply contact your insurance provider and let them know about the change. Most car insurance companies include a “My Policy” page on their website that allows you to manage your account. In this section, you can request to update your address. You can also notify your insurance company about the change of address by contacting customer service. Once your insurance company notices that you’ve changed addresses, they’ll review your policy and notify you of any changes.

How many days do I have to report a change of address for auto insurance?

It is recommended that you notify your insurance company of any changes in address as soon as possible. You have 30 days to notify your insurer of an address change. Most companies will allow you to change this information online or over the phone, though some require an update in writing.

Does where you park affect your car insurance rates?

cars parked on road

Insurance companies assess the risks that you have of losing or damaging your car based on where you park. This is why you have to fill out a “where will you keep your vehicle” section on the insurance application. Where you park does affect car insurance, but not by a lot.

Garages are one of the safest spaces to park your car. When you park on the street or in a driveway, you are exposing your vehicle to the elements, and even worse, theft.

If you move to a postal code with high accident rates, your car insurance will be more expensive. Consider adding uninsured motorist coverage onto your car insurance policy for extra protection.

Sign up for our Newsletter

Related Articles