When You Move from Your Household, Car Insurance Rates Might Change

Car insurance rates change when you move, particularly if you change states or ZIP codes. Save up to 25% with discounts for being a good student.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: May 12, 2020

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Here's what you need to know...

  • If you’re a young driver and getting off your parents’ insurance plan and onto your own, you can expect your rates to increase
  • Moving to a different state or even a different neighborhood may have a positive or negative affect on your car insurance premiums
  • There are several discounts that may apply to young drivers. Check with your insurance company to see if any apply to you

Moving away from home is an exciting proposition for many people, especially teens.

If you are a young person that is moving out of their parents’ household, car insurance rates will probably change dramatically, especially if you are currently on your parents’ insurance policy.

Get online car insurance rates relevant to where you live just by entering your zip code!

A change of rates doesn’t just apply to a teenager moving out of your household. Car insurance rates will also change if you move out of your home to a different neighborhood, city or state. How much they will change simply depends on where you move.

Teens Moving from the Household: Car Insurance Rates will Probably Increase

If you are a teen or a young adult moving away from your parents’ household, you can expect to see an increase in your car insurance rates.

As mentioned above, this is especially true if you were previously on your parents’ car insurance policy and you are buying one of your own.

The good news is that the older you get, the less expensive your car insurance will be, as long as you maintain a good driving record. The bad news is that you typically don’t see a significant drop in rates until after you turn 25.

Even as a young driver, there are some discounts that you can qualify for in order to help you save money on your car insurance.

For example, if you are a student, maintaining good grades is an excellent way for you to save money on your insurance. In addition, buying a safer car with anti-theft devices and extra safety features will help to save money.

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Moving from Your Household: Car Insurance Rates May Change

When you are moving from home to a new place, your car insurance rates could increase, decrease or stay the same. Yes, this is a bit vague, but there are a couple of things that your insurance company will consider when you move.

  • First of all, where are you moving? When you move to a new neighborhood, it is possible that your rates will stay the same if you are living in the same zip code. Even so, your insurance company will still check the area in which you are living to determine what the average accident rate is there.
  • If you move to a new zip code then you could see an increase or a decrease in your rates. Typically, if you are moving somewhere near where you were living previously, those rate changes will be minimal unless you move to a neighborhood with high auto theft rates and vandalism.

If you didn’t already know, car insurance rates vary – sometimes dramatically – from state to state. If you move out of state you could see a dramatic increase or decrease in your rates depending on where you move from.

According to the National Association of Insurance Commissioners the states with the highest insurance rates are:

  • Washington DC (not really a state but it applies)
  • New Jersey
  • Louisiana
  • New York
  • Florida
  • Rhode Island
  • Delaware
  • Nevada
  • Massachusetts
  • Connecticut

The states with the lowest insurance rates are:

  • North Dakota
  • Iowa
  • South Dakota
  • Nebraska
  • Idaho
  • Kansas
  • Wisconsin
  • North Carolina
  • Maine
  • Indiana

If you move from North Dakota, where the average insurance rate is $516 a year to Washington DC where the average insurance rate is $1,100, you will see a major increase in your insurance rates. These are liability-only averages.

North Dakota average for liability, comprehensive and collision is $1,200 annually and in Washington, it is $2,300.

When Changing Your Household, Car Insurance Savings are Important

If you are moving to a new state, especially if you are moving to one of those states with the highest rates, you need to find ways to save money.

Every insurance company has different discounts for you to take advantage of.

You need to be aware of what discounts you might qualify for. Taking a few minutes to find a comprehensive list of all the discounts available is well worth your time.

There are some common ones, such as safe driver, older driver, loyalty discounts and more, but there are quite a few that are specific to certain companies.

In addition, shopping around ensures that your rates are the lowest that you can buy. Using a free quote tool is a great way for you to shop around without having to spend your time visiting multiple sites.

Enter your zip code now to get your free online car insurance quotes!

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Average Monthly Car Insurance Rates by State