It is not unusual for insured drivers not to question their insurance renewals. Quite often they receive these in the mil and may do no more than glance at them. All they care about is it that they have insurance and know what they have to pay. If the premium has gone up, this may draw the attention of the insured. There can be several reasons why insurance will go up, and one of these is because the driver has moved.

Why Do Insurance Rates Go Up When You Move?

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Insurance companies rely on many different types of statistics. They do this to help them set their premiums. Different areas within a region can dictate specific circumstances when it comes to insurance. Some areas are a higher risk than others. Insurance companies are aware of this. Their mandate is to reduce their risks as much as possible.  To do this, they have to rely on as many resources as they can.

One of these resources is the statistics that come with information about vehicles. As they relate to particular areas. This will vary from province to province. Although every province will have their areas of concern. When it comes to vehicle insurance.

Cities That Have High Insurance Rates In Ontario

Sometimes individuals compare their insurance rates. They may live in different cities in Ontario. They are often shocked.

These cities can be near to each other, yet there is a vast difference in the insurance rates. Insurance is high all across Ontario. But, there are some cities at that stand out more than others. Some may figure that the city of Toronto is going to be the most expensive. It does make the list of the top expensive cities. But the most expensive is Brampton. Then included in the list is Mississauga and Vaughan as well as Markham. Individuals may be moving from Toronto to Mississauga. They may already be paying a high insurance rate. They may see a large increase in their insurance premiums. It is often disappointing for them, but there is little that they can do about it.

The Metrics Concerning The Cities

There are all different kinds of metrics that the insurance company will look at for the area. One of the factors for insurance is the experience drivers in an area have. One of the metrics that is showing for Brampton is a lot of drivers with little experience. These are looked at on the whole. They create a higher risk for the insurance company. A specific driver living in Brampton may have a lot of experience, but they are exposed to a lot of drivers that do not. But they are at risk. Yet, at the same time, there may be a lot of other metrics for the experienced driver. Some that are going to help to bring the insurance down as well. Just because one lives in Brampton doesn’t mean that they are all going to pay the same insurance rates.

Increases Can Be Large

When drivers see a small increase in their premiums they are not concerned.  But when the increase is due to the area of living the increase can be quite large. For some, they have noticed more than a $500 increase. This is a whopping increase for many who have enjoyed lower rates.

Postal Codes as a Metric

Aside from the cities, another metric used by the insurance company is postal codes. It provides a great deal of statistical information for the insurance companies. Areas are often collection gatherers according to the postal code they come under.

For example, in some areas where people live their insurance is higher. The insurance companies use the location where the vehicle is. They use this to help determine the insurance premiums. They will usually use statistics that apply to different postal codes.

Don’t Be Tempted To Be Dishonest

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Drivers can be tempted to be dishonest. When they discover their insurance has gone up. When the increase is because of their new address.

What this means is that they may use someone else’s address. They use this for their insurance information. It may be an address where cheaper insurance exists. But, this is misleading and falsifying information to the insurance company. If a claim is made and the false address turns up, there could be serious consequences. Insurance companies are astute at being able to verify information.

Look For Other Insurance Reductions

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It is unlikely that one is going to make the decision not to move somewhere. At least not because of insurance costs. Instead, there are other of viable ways to lower insurance costs. One is by reviewing the insurance policy to make sure that one is not over insuring themselves. Or are buying insurance that isn’t necessary. Some individuals keep the same insurance policy for years. They may not update important information. For example, having a second driver on the insurance is more costly. If that driver is removed, the insurance company needs informing of this.

Knowing what the insurance is going to be like before making a move may be important. It could be a deciding factor about where one lives. Especially if they have options. It may be more important if there are several drivers in the family. It is worth considering. If one is thinking of moving to an area where insurance is high.

Other options for reducing insurance is by looking at the different discounts. Ones the Insurance Company has to offer. Every year many insurance companies offer new discounts and incentives. But many insured individuals don’t take advantage of these. It is because they are not reviewing what their insurance company offers.

Also, It doesn’t hurt to shop around for new quotes at least once a year. It can be quite surprising at the variations that different insurance companies offer. One insurance company that may seem reasonable this year may beat out by another company. Perhaps in the following year. Drivers need to stay tuned in to what the Insurance companies offer. It means they can capitalize on some great savings.

Resources

https://www.theglobeandmail.com/globe-drive/news/trans-canada-highway/the-most-expensive-cities-in-ontario-for-car-insurance/article32470637/
https://2ndchanceautoinsurance.ca/live-can-affect-insurance-costs-ontario/
https://www.thestar.com/business/personal_finance/2016/08/22/readers-puzzled-by-postal-codes-and-car-insurance-mayers.html