Do moving have an impact on my insurance premium?
When moving to a new place, many new changes come about in your life. With these new changes occurring, you may also have to deal with the paperwork that comes along with your new address. Such as, notifying your employer, your bank, utility companies, etc. On top of all of that, you will have to update your insurance policies. To ensure that you are adequately protected, make sure that your auto, home and life insurances policies reflect the changes in your life. The following article aims to tackle specific questions that you may have when updating your address or when purchasing different types of insurance and financial services.
Moving is often the result of an important change that may have occurred or are occurring in your life. Per example, you may have gotten married/divorce or just got a new career opportunity! These event have an impact on your various insurance coverage. Let your broker or/and your financial advisor know if any of the following events have occurred so your insurance can be adjusted to meet your current need. If you moved to a new city, here is an easy tool to meet a financial adviser close to your new home!
What is the impact of moving on my Auto insurance?
Changing your postal code will affect your car insurance premiums; it could go up or down. It will be dependent on the risk associated to where your new home is located. Think about it, this neighborhood is where you will drive and park your car!
Does moving affect my car insurance?
Yes, changing your address does affect the way your insurance company calculates your premiums as well as your coverage level. Insurance companies work by assessing risks applicable to you and your car. Thus, it is essential that you notify your insurer when moving. You may continue to use the same policy and merely change the address on it to reflect your new location; this is where you will park and drive your car. It is also possible that your insurer could suggest some changes to your coverage. For example, if your new location is prone to flooding, then they may ask you to add an endorsement to cover that, or they could exclude that peril. In the case, you move closer to your workplace that might cause your insurer to reduce your rates. The reason for this is due to the reduced amount of daily mileage when you move closer to your office.
If you do not advise your insurer about the change in address, this action could amount to non-disclosure of facts. You could also be charged with fraud as it could mean rate evasion.
What is the impact of moving on my Life Insurance?
We purchase life insurance to protect loved ones from the financial impact of the most severe life change – death. However, it is essential to review your coverage after the most significant life changes, especially those that change the size of your family or that seriously affect your finances. Below are a few important events which have important impact on your life insurance coverage and may be the reason of your move!
I bought a house!
Buying a home does not only mean homeowners insurance, it may also require you to purchase more life insurance to help your spouse or significant other pay the mortgage if something happens to you. Formulas to calculate life insurance will take into account mortgage and other debt to determine how much you need. If the reason of your move is a marriage/divorce or if you had a child and need a bigger home, these events all have an impact on the right coverage for you!
I got married/divorced!
Marriage is a major life-changing event. The financial responsibility of a spouse is part of the commitment you make. You should both have life insurance that protects each other. The sooner you purchase insurance, the lower the premiums. If you already have policies, you will need to update the beneficiary information. Divorce is also a time where you have to reconsider your life insurance needs. You must also ask yourself questions such as, will you be protected if your ex-spouse dies and they are the primary provider for you and your children? Moreover, you will have to allocate any cash value in your insurance. Finally, if you keep your policy in force after a divorce, you will want to remove your ex-spouse as a beneficiary.
I have a new job or just retired!
As your career develops your income increases, this means that your life insurance should reflect this increase in income as well. Your insurance policy should be sufficient enough to meet your family’s financial needs for several years after you pass away. Plans that are purchased in your 20s or 30s will have the low rate during your life. If you wait to buy individual life insurance when you are older, you might have developed a health problem that can make you insurance very costly or impossible to get. Also keep in mind, relying on a policy from work can become problematic because you might get laid off or quite in later years.
I had a child!
The birth or adoption of a child will be a crucial time to evaluate if you have enough life insurance. Adding a child means your household expenses will increase. Therefore you will need to consider if you have enough protection to provide for the child’s care and education in the event something happens to one or both parents.
Is moving the right time to get life insurance?
Previously people assumed they needed life insurance once they retired, however, this is not the case. Managing your life insurance throughout your life is important for the following three reasons:
- Long term care provision;
- Protecting your significant other financially;
- Estate planning.
If you just bought a new home, it is a great time to consider getting a life insurance and protect the mortgage. It could repesent an important financial presser on your loved ones if you pass away.
What is the impact of moving on my home insurance?
As a homeowner, you will need to insure your house for replacement costs so that in the event of serious damage or destruction you will have adequate coverage. Make sure that your new home insurance premium is current by reporting material changes or upgrades.
Is having home insurance mandated by law?
Although home insurance is not mandated by law for renters, having insurance can give you peace of mind! If you are a homeowner, it mandatory to have an home insurance before you meet with the notary. Furthermore, home insurance policy also generally provides your personal liability in the case someone injures themselves on your property or in your home, it also covers if you damage a third party’s property or you accidentally injure someone. Ask an insurance professional for more details.
Moving has a significant impact on any insurance premium you may have. It is imperative that you inform your insurance broker or your direct writer of your move so that they can adjust your coverage consequently.
Have a safe move !
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