Moving is always a big decision but one thing individuals may not fully consider is how their car insurance rates will be affected if they do in fact decide to relocate.
Fortunately for consumers, CarInsurance.com, an independent quote-comparison website, is offering a new tool that will help consumers determine how their insurance will be affected by a potential move.
Simply input current and new ZIP codes to the search engine and you can see the average rate change by the specified locations.
Insurance companies often put ZIP codes into different risk categories based on the number and severity of claims within the area. "Territorial rating," as the method is known, is used in most states to calculate a base rate used as the starting point for drivers buying coverage.
"In auto insurance terms, among the least expensive moves you can make is from Atlantic City, New Jersey to Las Vegas. Our data show an increase of three pennies for that," said Michelle Megna, managing editor of CarInsurance.com.
When calculating a car insurance rate, insurance companies also look at the driver's age, driving record, type of car and a slew of other factors, but the driver's location is often the starting point.
Here are the top 5 most expensive moves for car insurance rates, for cities and towns, on average:
1. Bullhead City, Arizona ($702), to Detroit, Michigan ($4,599) = 555% increase
2. Lake Havasu City, Arizona ($711), to Brooklyn, NY ($4,133) = 481%
3. Kingman, Arizona ($714), to Dearborn, Michigan ($4,006) = 461%
4. Falmouth, Maine ($730), to Bronx, New York, ($3,789) = 419%
5. Chloride, Arizona ($731), to New Orleans, Louisiana ($3,530) = 383%
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