For many people, moving doesn’t involve crossing state lines, but rather crossing from one neighborhood or suburb into another. Most consumers understand that different state laws make insurance rates in different states vary widely; however, most consumers do not understand why moving only a few miles can affect insurance rates as much as they often do. When consumers understand how moving and car insurance premiums are related, they can make better overall financial decisions when choosing where to live.

With other factors such as credit rating, driving record, age, and vehicle placing such a heavy weight on car insurance premiums, many consumers forget that what the car insurance rates are for different neighborhoods can have as much of an impact on finances as differences in trash collection, water, and other utility costs. When planning a move and weighing the bottom line costs of each location, car insurance rate differences should be included in the calculation.

Areas with high local taxes to support law enforcement and schools often also have lower crime rates and are therefore assigned lower risks than other neighborhoods. Consumers need to carefully consider all the factors, since a reduction in one expense is often accompanied by an increase in another expense.