Whether you are moving to a different city or even just a few postal codes away, you may be surprised that how a move can affect your your vehicle insurance rates. At Bow Valley, we are often asked by clients if they should notify their insurance company before or after the move and the answer is yes. Once you have moved, follow up with your insurance provider to confirm that you have completed your move and to ensure that any bills or documentation will be forwarded to your new address. In the article below, we will discuss why insurance rates can change with a move and requirements for notifying your insurance provider.
Why Insurance Premiums Can Change With a Move
Many people are surprised that their insurance premiums can change, even if they are relocating within the same city. There can be many factors that determine your premium and your address is one of them. Certain areas of a city may be low-traffic and therefore reduce your risk of collisions, or there may be areas of a city that have higher crime rates and increase your chances of your vehicle being damaged or stolen.
If your new address is closer or further away to where you work, this may also impact your insurance rate. The more you drive on a daily basis, the higher a chance of being involved in an accident. On the other hand, if you now are commuting less or taking public transit into work, your premium may be reduced.
Leaving the Province
The changes in circumstances also differ if you are leaving the province of Alberta and for how long. Taking an extended vacation, working in another province or permanently changing which province you reside in all requires you to notify your insurance provider so that the appropriate changes can be made to your policy if required.
Working out of Alberta
In most circumstances, having your car in another province while working will not directly affect your coverage. It can, however, result in some other changes to your policy depending on what your main use of your vehicle is and if you are considered a permanent resident of the province you are working in or using your vehicle for commercial purposes. Also, if your commute substantially increases, you will need to notify your insurance provider to ensure you are properly covered in the event of a claim.
If you are visiting another province on vacation, you do not need to worry about notifying your insurance provider or there being any changes to your rates. However if you vacationing in USA for an extended period of time or spending the winter in USA, then , it is important to advise your insurance company as there may be slight changes to your rate but this will ensure that in the event of a claim that you are properly covered and it can be processed without any hassle.
Changing Province of Residence
If you are permanently moving to another province, there is a grace period before you are required to change your insurance and vehicle registration to the new province in which you are residing. For example, if you move from Alberta to British Columbia, you have 30 days to register, license and insure your vehicle and 90 days to switch to a British Columbia driver’s license.
Coverage on Stored Goods During the Move
When hiring movers to relocate, you should always consider purchasing insurance coverage for stored goods during your move. There are usually several options to choose from, inducing released liability which will provide basic compensation for damaged or lost belongings or replacement value protection which will cover the full cost of replacing any damaged or missing items.
If you are about to move or have recently moved and would like a quote on vehicle insurance or to compare rates, contact a member of our team today.