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Does moving house affect your car insurance?

4 min read
28 Sep 2016

There is always something you’ll forget to do when moving home. Some of us forget to empty the refrigerator a few days before, and then have to frantically transport food in eskies. Others may forget to organise the mail redirection, or misplace their spare keys.

One task that many forget, however, has nothing to do with the upkeep or administration of your house… it has to do with your car. Many of you will know that your car insurance premiums are influenced by a number of things, like your history as a driver, your age, the car’s condition, etc.

Those premiums are also influenced by where you live, and where you park your vehicle at night. If your insurer underwrites your premium based on these details, will your cover remain ‘intact’ if you move to a new area?

We discuss…

Have you voided your car insurance?

Let’s say you move home, but you forget to update your car insurer with your new information. If your car is stolen from your new driveway, are you in trouble?

We’ve asked a few experts in the business, and the answer is … probably not. If you move to a postcode deemed ‘less safe’, you should still be able to claim. That said, you may be charged for the premium difference as a result of your new risk profile. This may tally a couple of hundred dollars or less. But the approach here differs across insurers, so make sure you read the PDS on your policy.

Does moving to another state or territory affect my car insurance?

If you move to an area, state or territory where your current insurer doesn’t provide any cover, then you may be denied your claim. If they do provide cover, it may just be a case of adjusting your premium, and you may have to pay the difference.

Getting into a situation where you’re potentially not covered is easy to avoid. Call your insurer, confirm your identity over the phone, and let them know you’ve moved home.

If you’re stuck with a more expensive monthly premium because of the move, it could be time to review your cover. We’ll help you find great value car insurance, no matter where you live – in just a few minutes.

How location could affect your car insurance

Your neighbourhood

Between traffic and police records, it’s easy for insurers to determine the relative safety of a neighbourhood. This is why your insurance premiums will cost something slightly different depending on where you move. Even if it’s just a few streets over, your bills could still change.

You may have thought a certain neighbourhood is safer because it has fewer car thefts, and that may be true. But what if it has a higher percentage of road accidents due to a blind corner on one of the streets, or it’s on a busy main road? These things also affect the postcode’s risk profile for the insurer.

Where you park your car

Another reason your insurance premiums may change is because of your parking situation. Perhaps you now have access to a lockable garage. That’s fantastic news! Your car is now more secure from theft, which means your insurer will (hopefully) recognise this decreased risk by charging you less each month in premiums. At the very least, off-street parking can reduce what you pay for insurance.

How far you drive each year

Some insurers charge less in premiums if you take out a ‘low kilometre’ driver policy, so long as you travel less than a certain number of kilometres per year (e.g. 15,000 km). So if you move house, you might need to consider this. Is your new home further away from work or your child’s school? If you think you’re going to be travelling further from now on, it’s also worth mentioning to your insurer.

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avatar of author: Alex Rappel

Written by Alex Rappel

Alex is quick to make a bad joke at the wrong time. He's got an unhealthy obsession with the hit TV series 'Friends' and is absolutely incorrigible when it comes to writing. Above all else, Alex loves helping people. In fact, one of the best ways he does this is by telling stories to explain complex ideas.

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