why car insurance co. increase your premium, when you inform them change of your address?

February 1, 2017 · Posted in FAQ 
car insurance
Mr. Questionair asked:

i have to pay a 35$ premium extra…because i made a change of address. What happened if i change my address back to the old house to avoid the premium? i only have 3 more months of my contract to the insurance company, plus im planning to buy a different insurance… what’s the consiquences of living in new home but car insurance from old home?

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4 Responses to “why car insurance co. increase your premium, when you inform them change of your address?”

  1. tonalc1 on March 28th, 2009 5:09 am

    Some companies base their rates on your zip code; they have statistics for accidents in that area, and if your risk is higher, you pay more.

  2. ♥_Dip_♥ on March 29th, 2009 5:52 am

    You must have moved in a high crime area, or the type of car you have is known for being stolen in that area. You’ve already changed your address so that would red flag you if you changed it back to the old address and if you don’t do a change of address the DMV will update it for you in about 60 days, there’s really no way around it. When you switch company’s ask them what tips they can give you on keeping your premium low. Good luck.

  3. Vince M on April 1st, 2009 11:42 am

    Many car insurance companies are in the practice of determining basic rates, not only on the driver’s record, but on the buyer’s zip code. The reasoning behind this is that, in some areas, statistics show a greater number of collisions and claims made. Perhaps the insurance companies believe that bad drivers seem to congregate in certain areas.

    In any case, since insurace companies are in the business to make a profit, they can use these statistics to justify whatever they want to charge their customers.

    By the way, if you, falsely, reapply under an address that is no longer yours, THEY can, not only deny any claim you make, they can sue you for perjury and who knows what else.

  4. gomanyes on April 3rd, 2009 8:58 pm

    The rate is based on the risk. If there are more accidents or thefts in your new city, you will pay a higher premium.

    Lying to them about where you live is fraud. They can deny your claims, so it’s as good as not having insurance. You will have to pay fines as well.

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