Why you should consider insurance when you move
Moving comes with a big to-do list that includes things like packing, cleaning, updating your billing address, and deciding who’s going to be in charge of moving your precious cargo. One thing that you may not consider when undergoing a move is your insurance.
Here’s why you should add insurance to your list of things to do before you move.
Why insurance matters when moving
Insurance companies calculate rates based on a number of factors and your location plays a critical role in it. So, depending on where you’re moving, it’s likely that your insurance rates will change.
For example, if you’re moving to an area with a higher rate of crime, or closer to a body of water, you’ll likely pay more to cover the increased levels of risk. On the other hand, if you’re leaving a city for a rural town, or moving into a place that has updated plumbing and electrical, you’ll likely pay less for insurance due to the decreased levels of risk.
Auto insurance works similarly when moving. If your new apartment or house has a high rate of collisions, expect to pay more for car insurance. And, if you’re moving to an area with a low rate of collisions, you’ll pay less. After driving history and demographics, location may be the most significant factor in determining your rate.
A tenant insurance policy will not only protect your valuables while they are in your apartment, but also when you’re moving - both enroute and during the physical packing/unpacking. If a buddy happens to drop your TV during a move, don’t fret, you can make an insurance claim, but keep in mind submitting a claim may increase your rates.
If it’s not your first apartment, and you’ve decided to move into a nicer, more expensive unit, it’s possible to pay less if it’s more secure. That’s because renter’s insurance doesn’t protect the building, your landlord’s insurance does that. Renter’s insurance protects your valuables, provides access to additional living expenses in case you need to live elsewhere after a flood or fire, and liability in case someone injures themselves in your unit. If you’re insuring the same stuff, but in a more secure unit, you could see a slight cost reduction.
If you’re a student, moving into your first apartment, your parents home insurance policy may cover you and you might not even need insurance. This is something you need to look into prior to moving, as it negates the need to get your own policy and saves you money.
One good change deserves another
The costs associated with moving don’t stop after the truck is gone and the boxes are unpacked. You’ll also be on the phone a lot with all your service providers updating your contact information, but don’t stop there, ask about modifications to your existing service and try to find discounts.
With your tenant’s insurance, take the time to review and update your contents. If your stuff is damaged in a flood, but you didn’t add your new laptop to your list of valuables, you may not be completely covered. If you want cheaper insurance, consider increasing your deductible (if you can afford to pay more when filing a claim), or dropping collision if you’re driving an older car. If you bought winter tires, will be driving less because you’re closer to work, or can afford to pay annually, there are discounts for you.
Don’t settle for expensive insurance. If moving increases your pricing, get a home or auto insurance quote online.
If you want to switch insurance companies, you may have to wait until your policy is up for renewal. While you can switch mid-policy, it may involve surcharges and other fees, but sometimes the savings make it worthwhile.
If you’re switching before renewal, notify your current provider of the date in which you’re planning on canceling. Coordinate this same date with your insurance broker or the new insurance provider for when you want the coverage to kick in. It’s critical that you avoid any gaps in your insurance coverage, not only can it lead to increased rates, you could be without coverage when you need it most.
The bottom line
Moving changes your perspective on life, money should be a part of it. While you're changing internet providers, and discovering the best takeout joints in the hood, add your insurance to the list - you could save hundreds. Happy moving!