17 September 2024
Car insurance change of address: What to know
5 minutes
When an insurance company calculates the cost of your insurance, there are a number of factors they take into account. Where you live and where you park your car are two of the most important. This means that it’s really important to notify your car insurance of a change of address. If you don’t, you risk invalidating your car insurance policy.
In this article we’ll look at how changing your address affects your car insurance, how to go about making this change, and the impact that it can have on the cost of your insurance.
Let’s dive in.
Does change of address affect car insurance?
Your premium is calculated using a range of factors including your age, the type of vehicle you are insuring and your driving habits. But two of the key factors in calculating your premium are where you live and where your vehicle is kept when you’re not using it.
Your address is important because it gives an insight into your local area, and some of the risk factors associated with it. Relevant information may include:
- The population density of the area
- Crime rates, especially theft and vandalism
- The number of insurance claims made in the area
- Traffic density in the area
Addresses in inner-city areas are generally considered the highest risk for car insurance providers since there are more people and traffic around, which increases the chance of an accident. Urban areas also tend to have higher crime rates, which can put your car at greater risk of being vandalised or stolen.
On the other hand, addresses in rural areas are normally considered lower-risk, since there is less traffic, fewer people, and, in general, less crime.
If you’re wondering, “Will my car insurance change if I move house?”, the answer is yes, it might. If you’re moving from a higher-risk area to a lower-risk area, your premium might decrease, and vice versa if you’re moving from a lower-risk area to a higher-risk area. However, there are a range of factors that go into an insurance premium, so it’s best to talk to your insurer to understand for certain how your premium might change.
What happens if you live at two addresses?
In some scenarios, you might have more than one valid address — for example, if you’re a student with both a home and campus address. This can complicate things in terms of your insurance, so it’s best to talk to your insurance provider to help you figure out which address you should use.
How to change address on car insurance
Wondering how to change your insurance address? In general, this is a pretty straightforward process. You can normally change your address in two ways:
- Calling your insurer directly
- Using your insurer’s online portal, if they have one
You will generally need some information about your policy to hand, such as your policy number and your vehicle’s registration number. Your insurer may change an administration fee for the change.
It’s important not only to let your insurer know about your address change, but also if you’re keeping your car in a different location. For example, if your new address has a garage where you will now park your car, where formerly you were parking it on the street, it’s crucial that you let your insurer know.
It’s also worth noting that you should keep your insurer informed of any other relevant changes to your vehicle or personal circumstances, for example:
- Modifications to your car
- Penalty points on your driving licence
- Changing your name
- Changing your gender
- Changing your job
If you’re in doubt over whether to inform your insurance provider about any changes, it may be best to assume that they should probably know about it, and get in touch with them.
When you should make the change
Moving house can be stressful, and it’s easy to see how things like changing the address on your car insurance can fall to the bottom of your to-do list. But this can cause issues with your cover later on, so ideally you should change your address as soon as you have a moving-in date for your new property.
If you leave it too late, you can risk a number of unwelcome consequences. In the most serious cases, your insurer may decide that your policy is invalid if you haven’t provided the correct information. If you then need to make a claim, you may find that you’re not covered. In addition, the police can fine you up to £1,000 for driving without insurance if you’re pulled over.
You may also have to pay a lump sum to cover the difference if your address change means a higher premium. For example, if you inform your insurance provider of your new address three months after you move, then you’ll likely be liable to pay the difference in full to cover that period of higher-risk insurance.
If you intentionally don’t update your address to avoid any changes to your premium, this may be considered fraud. In this instance, you put yourself at risk of all of the above penalties as well as potential prosecution.
What if you forgot to change the address on your car insurance in the UK? Even if it wasn’t intentional, you may also be considered higher risk for future insurance if you don’t provide your insurer with up-to-date information.
How to lower your premium if your address changes
If your address change means that your premium is higher, there are some things that you can do to help reduce your premium:
- Park your car in a garage or off-road overnight to ensure that it is less likely to be stolen, vandalised or damaged. Moving to an address with a garage can have a significant impact on your premium, since garages are considered much safer than street parking.
- Shop around for a new insurance provider, but note that you may have to pay to cancel your existing policy early.
- Pay for your insurance annually rather than monthly — this normally works out cheaper.
- Work on building a no-claims discount by driving safely.
- Increase the voluntary excess on your policy, which refers to the amount you pay to make a claim. It’s important to make sure that this is an amount that you can afford to pay in the event of a claim.
Other address changes to think about
While we’re thinking about vehicles and changing addresses, it’s important that you change the address on your driving licence as well, since failing to do so can lead to a fine of up to £1,000.
It’s free to change the address on your driving licence with the DVLA, and you can do so using this form.
You must also change your address on your vehicle’s V5c log book, as well as any personalised registration documents. If you pay for your vehicle tax by direct debit, then you need to change the address there as well, otherwise you risk your payments not going through and your vehicle not being taxed.
All of these changes can be made by contacting the DVLA.
You should also change any addresses on financial agreements that you have relating to your car, such as loan or lease agreements. You’re likely to receive important information from your loan or lease providers by post, so it’s important that you change your address so you don’t miss anything.
How Howden can help
Howden’s personalised service will help you with any changes that you want to make to your insurance. We are driven to save you time, money, and hassle, so we’ll do everything we can to help you navigate changes you need to make when you move. We also help you to find the best deal on your car insurance from our great relationships with a number of providers. Contact us today.
Also read: