question on car insurance

[CptCrunch]

I recently got a cancellation notice for my car insurance cause my agent did not update my address. I called and got the policy reinstated and everything is squared away, but told them that I moved from my parents house to an apartment, and that is why I missed the payment, that way I wouldn't have to pay an additional $150 dollars.

So my question, she stated that the rate might go up since I moved. If so, moving from my parents house to an apartment, why would my rates go up? How much would they go up if they did?

Currently have Progressive

2006 toyota corolla S
Pay $692.23 per 6 month period
100k/300k per accident
$500 collision/$250 comprehensive
roadside, pay off loan, $30 rental for 30 days, uninsured motorist, etc.

What do you guys think? Thanks in advanced

 

[RaistlinZ]

I thought there was a law passed where insurance companies can't charge you more based on your ZIP code anymore. It has to be based on your driving history, type of vehicle, etc. If they say they will raise your rates because you live in a different area now, just threaten to cancel your insruance and tell them to F-off.

 

[zzuupp]

Not an insurance agent, but some things could be.

A new zip code could be considered a higher risk.
A longer commute is usually a higher risk.

 

[looker001]

RaislinZ it depends on state law. I am not an insurance agent but i agree with zzuupp, it could be a zip code or something totally else such as crime rate.

 

[Capt Caveman]

Yep, varies by state. Moving from the suburbs to the city, my auto insurance went up almost $200 a year.

Looking at your policy, you may want to find out how much your insurance drops by raising the comprehensive deductible up to $500.

 

[Agentbolt]

Hooray, car insurance questions!! (Claims adjuster for Geico here)

Moving can absolutely affect your rates. The only state that really forbids that is Massachusetts. Here in Tucson, rates tend to be higher because we have a higher % of people driving without insurance (illegals and such) Therefore higher probability of payout under uninsured motorist coverages, hence higher premiums.

Bump your comprehensive to 500 bucks. Any decent company is going to waive your deductible for damage to the windshield, and replacement of most windshields is going to be under 250 bucks anyway for a Corolla. Windshield replacement is by far the most likely use for comprehensive coverages, I'd say 5-10% of the claims I take are comp as opposed to collision.

Living by yourself is also going to make your rates go up. Living with your parents you had more disposable income most likely, more disposable income = more net worth = less judgment proof if you got in an accident = more likely to drive safely. Insurance companies seriously think this way.

And just shop around. There's NO reason to be loyal to a particular company if price is your main concern. I'm not trying to steer you towards Geico either, sometimes Geico is a terrible choice. We're cheap for very bad drivers and very good drivers, people in the middle of the road can often do better elsewhere.

 

[looker001]

Agentbolt, did California not recently banned practice of profiling rates base on zip code?

 

[Agentbolt]

Not that I'm aware of. California has a bunch of weird-ass requirements that other states don't (Prop 103, bodily injury with no treatment still requiring payment, etc) but I'm pretty sure they still base rates partially on residency. I don't work in underwriting so I can't state that 100% unequivocally, however.

 

[woodie1]

Where you live and park your car has, to the best of my knowledge, always been a factor in your premium.

 

[Xcobra]

Yup in cali does vary by zip code. My rate went from 93 monthly to 167 monthly when I lived with my dad (richmond, bay area) this summer...it sucks i know!