I bought a house in a different town last month. I have Geico, and bundling my car and homeowners insurance together gave me a $300 discount every 6 months. Today, I got a reminder from Geico to update my mailing address for the car insurance. But when I entered my new address, it said my policy would go up by $280 every 6 months. This is crazy because it cancels out my bundle discount. I moved from an inner city to a rural suburban area. Is this normal? Is this even legal?
Is this normal?
Yes, the rate changed when you updated your information. This happens a lot.
Is this legal?
Yes.
Is this normal?
Yes, the rate changed when you updated your information. This happens a lot.
Is this legal?
Yes.
It seems strange though that it’s going up by the exact amount of the multi-line ‘discount’.
@Taylor
You didn’t give them the right information. You moved to an area with higher rates.
Rural areas tend to mean more driving. Fewer people can lead to higher accident rates per capita.
A lot of things affect it.
@Taylor
But I’m moving to a safer, less densely populated area with a shorter commute. It should be going down, not up.
Taylor said:
@Taylor
But I’m moving to a safer, less densely populated area with a shorter commute. It should be going down, not up.
You moved to a rural suburban area. People in those places usually drive more daily. More driving time means a higher chance of accidents. In cities, you might see more theft or vandalism. So, it’s not that simple to assume rural areas always mean cheaper insurance.
@Miller
Exactly. I’m from a small town in Idaho. My insurance went down when I moved to a city with hundreds of thousands of people. It’s just how it works.
Taylor said:
@Taylor
But I’m moving to a safer, less densely populated area with a shorter commute. It should be going down, not up.
What you think might be happening doesn’t always match what their system calculates for your premium.
Yes and yes. Your location really impacts car insurance rates.
Rates depend on your zip code. They can change just based on which side of the street you live on. Many things like the rate of accidents, stolen cars, and the cost of repairs all affect your premium. It’s totally legal.
It’s normal. You should shop around.
Why would it be illegal?
It changes based on location, zip code, and other factors.
This happens all the time… your county and city both matter a lot.
If one insurer could be the cheapest everywhere, there would only be one insurer. Shop around for better options.