Do insurance rates get higher just cause you change the state you live in?

Question

I heard from someone that thought there was a law that says your insurance rate can be raised just because you changed your state of residency. Is there any truth to that?

Answer 1

Every state has it's own insurance laws.  All companies licensed to do business in a state have to file their rates with the state.  They file their rates based on claims experience (claims payouts) for each area of the state & each age group, car, etc.

So, moving to another state can make your insurance go up OR down.  Also, your current insurer may not be licensed in the state you are moving to so you would have to change companies.  At a minimum, you would have to cancel the policy in the old state & start a new one in your new state because different states have different laws and coverages (PIP for example, some states are PIP states, some are not).

Even between 2 states that have similar rates & coverages, you would still have to cancel the old policy & start a new one.

Answer 2

Your insurance rate is based on where you live. Based on population and many other factors. It can go up even if you move to a different COUNTY! (I'm guessing you're talking about car insurance)

Answer 3

Certainly rates can be changed based upon location.  If you are speaking of car insurance, those rates are determined by the accident/theft rate where you will be living.  Health insurance rates also vary.  If you live in a smaller area where a hospital room is $700 a night, rates will be lower.  If you're in downtown Chicago where hospital rates are closer to $1200 a night, you're going to pay more.  It's all based upon risk and payout potential.

Answer 4

Some states have more expensive insurance costs than others.  You may be moving into one of those. Or you may be moving into a less expensive insurance cost state.

My son moved from NJ to NC, and his rate went down. If he moves back, his rate will go up.

Answer 5

not a law but its is practiced by insurance companys   i was paying $1,200  a year for full coverage   it was a 50-100k policy  including  glass and tow  in upstate newyork i just moved to to Tennessee   and i got an upgraded policy   for 100-300k  glass-tow  for almost $440 cheaper   then my old policy  only cause of newyork citys bad rap for car theft  and i lived 2 hrs away  at the time from nyc

Answer 6

It depends on the underwriting guidleines for the territory you move to. I moved from one county to the next and my homeowners insurance went up slightly because the county I moved into had a greater history of tornado and hail damage. The same could be true for your car insurance rates also.

And to answer your question, there is NOT a law that says your rates can be raised because you moved. Insurance is regulated on the state level, not the federal level. That means that it would be impossible for New York to be able to regulate how your insurance could be handled if you moved to Kansas.

Answer 7

No I changed states two yearsago and my rates went down ALOT!!!

Answer 8

What kind of insurance?  Insurance rate will definitely vary from state to state.  Insurance is an industry that is largely regulated at the state level.

Answer 9

Typically, insurance rates will vary from State to State and can even vary by ZIPCODE! It also will depend on the type of car/truck, coverages, limits of liability, and driving record. Some companies run credit scores and MOST run a motor vehicle report and CLUE (Comprehensive Loss Underwriting Exchange) report to see about undisclosed accident involvement.

The best thing to do is call a LOCAL independent agent. Don't go across town, or to some other city - look for someone CLOSE. Just look in the phone book for the PIA or Big I (Trusted Choice) logos and you will find a professional licensed agent that will be able to help you solve your insurance problems, and give you rate comparisons of several different companies.

An independent insurance agent will normally have a dozen different companies and if he cannot help you, he should be networked with other local agents that can.

In my agency, we have companies that do NOT run a credit score and welcome drivers with "less than perfect" driving records and specialize in youthful operators!

Most of the replies on this site say "go to this on-line carrier or that on-line carrier or that 1-800 number" but I'm sure that when you do, you will find some impersonal computer user with a script to work from and you won't be able to talk with the same person every time you have a problem!

Good luck, drive RESPONSIBLY and I hope this helps!

Answer 10

Not to my knowledge.  Insurance rates differ by territory.  If you move from an area whose rates are lower than one you move to, your premiums will increase.  The reverse is also true.  Just moving from one state to another should have no bearing on your rates.