Moving to a new home can be exciting, but it may also change what you’re currently paying for both your car insurance and home insurance policies.
Where you live is one of the variables insurers use when calculating the premium for both of your policies, so when you move, your premium will likely change.
Many people may figure they'll just tell their insurance company of their new address and assume nothing will change. That isn't always the case. Each insurance company calculates their rates differently, and the insurer who offered you the best rate at your former address may not offer you the best rate at your new address.
So, what can you do about it?
One common way to reduce your overall insurance costs is to bundle your policies.
Bundling your insurance policies means you’re buying your auto insurance and home coverage from the same provider. Many insurers will offer what’s known as a multiline discount if you choose to do so. The discount will vary among insurers, but in general, it may range between 10% and 15% off your total insurance bill.
For most people looking to save on their policies by bundling, the car insurance bill is often the most expensive. There are other ways to manage your car insurance costs, over and above bundling, including:
Moving to new digs means you may face different risks. Insurers will consider several factors when assessing your home insurance premium like:
There are ways to save on home insurance by taking advantage of possible discounts you may be eligible for as well as improving certain features of the dwelling.
Moving isn’t the only time when you should compare car insurance rates. There are many life events when spot-checking your rate makes sense, such as:
Each of these scenarios will likely affect your premium and, because each insurance provider calculates their rates differently, it represents an opportunity to potentially pay less for insurance. There are a few strategies you can use to help reduce your auto premium.
Insurance isn’t one of those things that you can “set it and forget it,” because if you do, you may be leaving money on the table. Bundling your home and car insurance policies is beneficial for both you and your provider. You get to streamline your insurance with one bill and renewal date, while your provider can receive business on more than one product. Be sure to notify your provider of your change of address before your moving date.