Before Moving, Check Your New Address with Your Insurance Company to Avoid Higher Rates

This story will display in ...Nov 16, 2012 3:30 PM  

As if moving wasn't costly enough, your insurance rates may go up based on the location of your new home. And it's not just homeowner's and renter's insurance—car and health can rise as well because companies are allowed to charge more or less based on your location.

The LA Times reports:

Joan Swope, 62, moved recently from Cathedral City, just down the road from Palm Springs, to nearby Palm Desert. She informed her insurer, Anthem Blue Cross, of the change of address. A few weeks later, Anthem responded with a notice stating that, because of the move, Swope's monthly premium on her individual policy will increase to $524 from $418. That's a more than 25% rate hike. For a move of less than 10 miles.

When I moved about the same distance, my renter's insurance increased minimally because I supposedly chose to live in a higher risk area. According to crime statistics and safety ratings, I actually switched to a safer location. The same thing happened to a couple of friends of mine. While these increases were very negligible, some people aren't so lucky. Before you move, call your insurance companies and find out if you'll be subject to a rate increase. If the change is significant, you may want to look at another location.

Patient trapped in health insurance rate hike | LA Times via The Consumerist

Photo by tanatat (Shutterstock).

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