Planning To Move? A Change of Address Could Save You Money on Your Insurance

Moving Could Save You Money Your Home and Auto Insurance Policies

car-girlWhen you make the decision to move, finding a suitable place is the first step. Whether you are a renter or preparing to buy your first home, house hunting is not an easy task and it requires an extensive search to accommodate all of your family’s needs. Although finances can play a key role in your decision, there are many other factors to take into consideration.

When you begin your search try to find a few places that you can keep in mind while you continue to shop around.

  • Do a quick inspection of each property to make sure that there aren’t any noticeable issues with wiring, water leaks, or any type of damage that may end up causing you to make costly repairs after you are settled in. The location of your new home is just as important as the structure itself.
  • To avoid the intimidation of moving into an area that you are unfamiliar with be sure to take the time to check out the neighborhood. Research the crime statistics in the area, compare the distance you will be traveling to and from your job, visit the schools, locate the town hall/police station, and find safe access to parks/lakes.  This will allow you to be more at ease with the safety of your family and your possessions when your move is finalized.

The next step in the moving process is choosing the best insurance plan for your new place. Renter’s/ Homeowner’s insurance and Auto insurance can be lower depending on where you choose to live. First, you should be aware of how your insurance rates are determined. Insurance companies use similar criteria when preparing your quote as you would use when preparing for your move. Each company uses the information differently which is why rates vary from each insurance company. Each insurer must file with the state the procedure on how they arrived at your current rates. They also must conform to that procedure. State regulations require the information used for the rates to be reviewed randomly.

When getting your Home and/ or Auto insurance quote, the rates are usually based on some of the following criteria:

Location:

Some neighborhoods experience more crime than others, there is a higher potential for theft and vandalism to your home and possessions in these areas. Some areas are more secluded and may experience less crime, but then the possibility for a fire or other disaster when the homeowner is away may go unnoticed in those areas causing more damage, so this also becomes a greater risk. Rates vary from state to state due to natural disasters. Some areas are more prone to flooding, tornadoes, hurricanes, or earthquakes.

Age/Construction:  

The type of construction, whether it is made of brick, wood, or concrete will have some bearing on your rates. Rates will widely depend on what the cost would be to replace the home if it was a total loss. Premiums are higher for homes that are made with higher quality materials and elaborate fixtures. If your home is older the wiring, water pipes, or the roof may be in need of repairs. You can invest in some remodeling/upgrading of the alarm systems, rewiring, roof repairs, upgrade the heating units, and replace old pipes to potentially lower your rates.

Since most insurance companies offer bundles for home and auto policies, you could save money on your current auto rates as well as your homeowner’s insurance when you choose to bundle. Auto insurance rates are calculated much the same way as homeowner’s. Where you live, what you drive, and your driving record will all be considered when getting your quote as well as some of the following criteria:

 Location: 

Certain areas are more prone to theft and vandalism than other areas. Many companies research the crime statistics in the area where you live and use it to base your rates.   Some more congested areas are also a factor since there is more of a chance for an accident in areas with more traffic. If you have moved to a place that shortens your weekly commute, and you are driving fewer miles, this also is figured.

Driver Age: 

Age helps to determine your experience as a driver. Younger drivers tend to be higher risks because they lack experience in many situations that can occur on the road. Other drivers that may be a risk are those who tend to not drive regularly. Often times their skills may not be as sharp. Driving records are also used in determining rates.

Type of Vehicle:

Vehicles that are sporty, fast, and expensive are generally highly rated and result in higher premiums. Sports cars usually result in high premiums because they are more apt to be involved in accidents that result in excessive damages and injuries. Vehicles that are more expensive may have higher rates based on how much it would cost to replace the vehicle if it was a total loss.

Lastly, make it a priority to notify the postal service of your move so that you will get your mail delivered to your new address. You should also directly contact your insurance company, bank, DMV, and the IRS. Mail is forward to the new address for up to 12 months. After that time period, the post office returns the mail to the sender unable to forward. The sender will need to track down your current address and resubmit the mail.  If there is no forwarding address on file, you will not get the mail. In some cities if your name is not listed as a resident on your current address, you may not get your mail delivered to that address. The postal service has made it easier than ever to change your address. You can go online, make changes on the phone, or stop into the branch.

If you have or are planning to move in Minnesota, talk with one of our agents for a Free Home and Auto Insurance Quote.

By: Insurance Advisors, Inc. 

MN Auto Insurance: What Affects Policy Cost?

Variables that affect the cost of your auto insurance cost.

Auto Policy Cost

 

Age and Gender –  Insurance Industry statistics show that certain groups of people have different accident rates, based on their age and gender. For example, teenagers and seniors have more accidents. Because they are viewed as an increased risk for the insurance company, they pay more for coverage. 

Type of Vehicle –  Certain vehicles cost more to repair or replace. An insurance company charges more for physical damage coverage on one of these vehicles.

Mileage –  The more you drive, the more opportunity for an accident – and the more you pay for coverage.

Driving Record –  You will be rated according to traffic accidents and tickets you have over a period of years. The more incidents, the greater the premium. You may also be turned down for coverage if you have too many.

Where You Live – If you live in an area with more traffic (a city versus a rural area), industry statistics show that you have a greater chance for an accident and therefore will pay more for insurance.

Deductibles –  Some coverage’s in your policy have a deductible, which is the amount you pay first, before your insurance company pays, on a covered loss. The higher the deductible, the lower your premium. Insurance companies offer varying deductible amounts.

Discounts –  Your premium may be reduced by various discounts offered by some companies in some instances. For example, you may get a discount if you have your homeowner’s insurance and auto insurance with the same company; or if you are a non-smoker. Other discounts are required by law: policyholders age 55 and over who have successfully completed a defensive driving course; a vehicle equipped with an authorized anti-theft protection device.

Surcharges –  If you have one or more traffic violations or accidents, your insurance company may attach an additional charge to your policy. The Surcharge Disclosure Sheet, which by law must be given to you at the time you apply for your policy, will have the details.

Minnesota Auto Insurance: Required Coverage
Minnesota Auto Insurance: Optional Coverage
Minnesota Auto Insurance: Renting & Loaning
Minnesota Auto Insurance: No-Fault Coverage
Minnesota Auto Insurance: What Affects Policy Cost?

MNDepartment of Commerce