Will my car insurance go up if I move?

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Your car insurance costs may go up if you move, but it depends on where you’re coming from and where you’re moving to. Your rates are based on a few factors, and your location is a big one. 

Your ZIP code affects car insurance rates because of the unique risk factors in that location. Some cities have more traffic or crime than others, and accidents or vehicle theft may be more frequent. Certain areas have more damaging weather events such as tornadoes or hail storms. All of these factors mean more claims, which translates to higher car insurance rates.

Coverage requirements also vary from state to state, and if you are moving to a state with higher liability limits or additional coverage requirements, it could mean higher rates.
If you’re planning a move, it’s a good idea to investigate how your car insurance rates might change so you can prepare for higher costs if necessary. Read on to find out how moving impacts your car insurance costs.

Will my car insurance go up if I move?

Use our calculator to know how moving to another ZIP code affects car insurance rates.

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How does car insurance change when you move?

When you move, your garaging address changes. This is where you store your car most nights, and it’s the address the insurance company uses to calculate your rates. Sometimes, your rates will decrease when you move. This often happens if you move from a city to a suburb or more rural area. Conversely, moving to a city will mean higher rates. Why?

“Cost of living varies by location,” says Brenda Wells, chair of the Department of Finance and Insurance at East Carolina University. “It’s simply more expensive to buy car repair services, medical treatment, etc., in a major city than it is in a small rural town. Insurance has to pay for those services and treatments, so they charge depending on ZIP code.”  

Insurance companies must consider all these costs when calculating the cost of a claim. They must also consider geographic risk factors. 

“Traffic patterns, geographic features, and weather also vary by location and affect accident frequency and severity,” Wells says. “New York is different in terms of traffic density, terrain and weather than Phoenix, so its accident frequency and severity will also be different.” 

Insurance companies use claims patterns to calculate rates.

Does moving impact my insurance rate?

Moving impacts your car insurance rate, sometimes increasing costs, sometimes decreasing them. Insurance companies factor in many types of risk for each area when calculating your rates. Your ZIP code and the claims trends in that area will affect your rates for better or worse.

Moving to a different state also means different legal minimums for car insurance. Each state has a minimum amount of coverage you’re required to carry by law. You’ll usually see this written as three numbers, for example, 25/50/25. This means:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $25,000 property damage per accident

If the state you’re moving to requires more coverage, you may pay more for insurance. You may also have to buy additional coverage in some states. For example, if you move to a state with a no-fault insurance law, you must buy personal injury protection (PIP) coverage. Additional required coverage contributes to the difference in car insurance rates by state.

How to calculate your insurance rates when moving

If you’re moving soon, start comparing shopping for car insurance. Anytime you make a change to your policy, you should review your coverage options and how much you’re paying. If you’re changing ZIP codes and expect your rates to go up, you may be able to find a better deal simply by getting quotes from multiple carriers.

Also, if you’re moving to another state, investigate the mandatory state minimums and make sure you have all the coverage you need in your new home.

Contact an agent for help with quotes or use an online tool. All you need is your new ZIP code, a few pieces of personal information and the identifying features of your vehicle.

What our expert says

Q: Why does location affect car insurance rates?

Brenda WellsChair of the Department of Finance and Insurance at East Carolina University.

Cost of living varies by location. It’s simply more expensive to buy car repair services, medical treatment, etc. in a major city than it is in a small rural town. Insurance has to pay for those services and treatments, so they charge depending on ZIP code.”

Methodology

Insure.com commissioned auto insurance rates from Quadrant Data Services in 2023 in all 50 states and D.C. and at the ZIP code level. Rates were based on a sample driver with a 2023 Honda Accord, 40-year-old male, clean driving record and good credit. Rates were fielded for three coverage levels: state minimum, 50/100/50 liability only, and full coverage at 100/300/100 with $500 deductibles.