You probably already know that your address affects your home insurance rates, but did you know that it affects what you pay for car insurance as well?
Let’s explore how your address impacts how much you pay for insurance so you can shop for the best premiums wherever you live or plan on moving in the future.
In addition to differing significantly by province, auto insurance rates also vary by region, city, and even by neighbourhood.
Reasons insurance rates might be higher within a relatively small area like a municipality include:
Despite these common factors that affect rates, insurance providers don’t always calculate their customers’ premiums in the same way. So it’s important to get quotes from several insurers to determine how much you will spend for comparable auto policies.
Average insurance prices tend to be relatively low in quiet, low-traffic downtown neighbourhoods where most residents walk, bike or take public transit daily.
If you live in an urban area similar to the central Toronto neighbourhoods of Bracondale Hill, Hillcrest Village, Palmerston-Little Italy, Koreatown and Davenport, you’re more likely to enjoy lower insurance rates. The walkability, bikeability, and public transit options available in these types of areas, can help you:
On the other hand, moving to a larger city (especially in the GTA) can also increase what you pay for insurance. In Ontario, Vaughn and Ajax have the highest insurance rates on average. Learn more about which cities in Ontario have the highest car insurance rates.
According to LowestRates.ca: Toronto neighbourhoods in the M6E and M4X postal codes pay the most expensive insurance rates in Canada’s most populated city partially due to:
Moving from an urban or developed suburban area to a rural location can also affect your insurance rates in some unexpected ways. For example, you may be driving on less congested roads in the country. Still, insurance companies also think about how much you need to drive and the infrastructure in your area.
When you think about moving, how your move will change your daily commute probably gets more consideration than its impact on your insurance premiums. The great news is that moving closer to work can also help you save money on auto insurance!
Of course, your insurance company will still look at other ways your new home impacts your likelihood of making a claim. Still, a short commute or no commute (if you can avoid driving to work) is a meaningful way that your actions affect your insurance rate.
Make sure you tell your insurer about how your move will change your driving habits so you get the coverage you need and can access any available discounts.
Your address significantly affects your insurance rates because it’s linked to your likelihood of making a claim. Not telling your insurer about changing your address isn’t a risk you want to take because it could result in claim denial or the cancellation of your policy. It’s crucial that you always let your insurer know when you move so you have peace of mind on the road: knowing you have the coverage you need.
Where you live is just one part of calculating your insurance rates. When you get an auto insurance quote, purchase or renew your policy, many other factors will determine what you pay.
Those are a lot of factors, and it’s the reason why everybody’s insurance price and needs are so unique! We work to make getting the best coverage easy and stress-free at aha. If you have any questions about your insurance or discounts, like bundling your home and auto policies, give us a call.
You can also get a quote anytime to find out how much you can pay for your personalized auto policy.
Now you know how your address fits into the big picture of how insurance companies determine your auto premiums. You’ll be able to choose your new home, inform your insurer, have the peace of mind that comes with coverage, and move with fewer surprises!
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