I'm Moving From a City to the Suburbs. How Will That Impact My Auto Insurance Costs?

The average annual auto insurance premium in the U.S. is $1,547, according to U.S. News & World Report. But there are different factors that will determine how much you pay for car insurance.

Your driving record, for example, will go into your premium rate calculations. And the cleaner it is, the less you might pay for coverage.

Your physical location will also determine what auto insurance costs you. If you're making a move from a city to a suburb, there's a chance you might be happy with the impact that move has on your car insurance rates.

You may be in for some relief

Auto insurance rates are partially based on the area you live -- specifically, its crime rate as well as its accident and claims history. If you move to an area with a statistically high rate of crime, that alone could cause your auto insurance costs to soar. But if you move from a crime-ridden ZIP code to one that's considered safer, your costs might drop.

Similarly, when you move from a city to the suburbs -- a trend that's taken off in the wake of the pandemic -- you may find that auto insurance starts to cost less. The reason? It may be that the likelihood of your vehicle being stolen or damaged is lower in a suburb than in a city, or that the suburb in question has a lower crime rate than the city you've leaving.

Think about it this way. It's often (though not always) the case that people who have a car in a city, park it on the street. Since cities tend to be pretty accessible, someone could, conceivably, walk down the block, snatch your car, and drive away with it with relative ease if they have the skills to break into a vehicle.

But now let's imagine you live in a suburb that's really only accessible by car. How would a criminal with a need to steal a car get to your home to steal your car in the first place?

What's more, let's say you've moved to a house and have a garage to park your car in. The likelihood of your vehicle getting damaged or broken into may be lower than if your car is out on the street. So that, too, could be a reason your auto insurance rates go down.

Always let your insurer know if you're moving

Whether you're moving from a city to a suburb, a city to another city, or a suburb to another suburb, it's important to keep your auto insurance company in the loop. It may decide to adjust your premium rates based on your new location.

In some cases, a move might result in lower auto insurance costs. In other cases, not. But either way, once you move, it's a good idea to shop around for auto insurance to make sure you're getting a good deal.

Perhaps your current insurer does, in fact, have the best rates to offer. But you won't know for sure until you make calls to different insurance companies and get the data you need to make an informed decision.

Plus, if you're moving from a city to the suburbs and are buying a home, you'll need a homeowners policy, too. It could pay to look into bundling your auto and homeowners insurance policies to see if that results in a lower cost for both.