Insurance is a slightly unusual business because it depends on your honesty to tell the insurance company everything it needs to know about the risk you want it to underwrite. The insurer cannot know everything. So there’s this rule. If anything significant happens to change or affect the risk in some way, you have to tell your insurer about it. Should you forget and later claim, the insurer is entitled to refuse payment on the claim if the forgetfulness is discovered. Is there a rule on what justifies you opening your mouth and speaking? No. This means you have to assume it’s better to speak rather than keep quiet.

What is this about changing address? Well, this is one of those hot-button insurance issues. In most states, insurers operate a ZIP code approach to setting premiums. If you live in an area where there’s high crime or there are a lot of accidents because of bad road design, your premium rate will automatically be higher. Only those of you lucky enough to live in California avoid this unfairness. Really all insurance should be based on your skills as a driver but that’s too much like hard work for insurance companies. It’s just so much easier to lump everyone together based on where they happen to live. Now, let’s say you know the ZIP code next to you has lower premiums so store the vehicle there whenever it’s off the road. This is always worth a try because this directly affects the risk of your vehicle being stolen or damaged overnight. Now let’s change the scale a little. Come the fall, all our young drivers have this urge to leave home in favor of college or university. Higher education is good for premium rates. To get in, you need a good GPA which entitles you to a discount. Many colleges and universities are also in good ZIP code areas so, if your vehicle is going to be garaged there, this is definitely going to affect the insurance rate.

Getting a little more specific, if this your own vehicle or is it still in the name of one parent? It’s always better in the long term to be establishing your own track record as a driver. The longer you hide on your parent’s policy, the more expensive it’s going to be when you finally do get a policy on your own. Let’s say this is in a parent’s name, he or she will have to notify the insurer of the change of address during term time. If you are going out of state, there may also be implications if the new state has a higher mandatory liability coverage. Never assume you know. Always ask for new auto insurance quotes if there are going to be major changes. If the vehicle is in your own name, this should light a fire under you. Check out whether the college or university has any special rates or offers driving courses that will earn you a discount. There is still cheap auto insurance out there for you as a young driver. You just have to know where to look.