Anytime changes in your life take place, it is important for you to contact your auto insurance agent to update your policy. This not only includes changes in your vehicles, but it also includes changes in your personal life, such as moving. If you are moving, you should make sure you update your policy, as moving can affect your auto insurance. Here are several things to understand about the effects moving can have on your auto insurance.

States have different requirements

If you are moving somewhere within the same state, it is not as important to contact your auto insurance company as it is if you are moving to a new state. Every state has its own separate list of requirements in terms of auto insurance.

If you currently have a minimum-coverage policy in your state but move to a new state, your policy might not be enough. You might need to add extra types of coverages to your policy or increase your policy limits. Additionally, you should make sure that the company you currently use for auto insurance is able to sell auto insurance in the state you are moving to.

Moving changes risks

One of the top reasons you should notify your insurance company about your move is due to the changes in risk you may encounter simply from moving to a new house. Insurance premiums are highly based on risk levels, and there are many factors used to determine a person's risks, including the person's address.

If you currently live in the safest neighborhood in your state but move to a neighborhood that is not as safe, you probably will be a higher risk to your insurance company, which means your rates might increase a little bit.

Your move may change your mileage usage

The other thing to realize is that moving may change the mileage you put on your car each year. If you currently have a one-hour commute to and from work each day and are moving to a house that is one minute from your job, you might be able to save money on car insurance due to a decrease in the mileage you will put on. If this is the opposite, you might have to pay more money due to an increased amount of driving you will be doing after you move.

Moving can affect the rates you pay for car insurance, and you should report your move to your auto insurance agency. To learn more about car insurance rates, contact an agent today.