When shopping around for auto insurance, your budget will likely be one of the key factors driving your choice of plan. Yet, there may be some factors that you didn’t realize can affect how much you spend on auto insurance; your garaging address is just one of those factors. Learn how the location of your vehicle’s resting place can impact your auto insurance rate, and why it’s crucial to ensure that this address is updated and accurate!


What is a Garaging Address?

Quite simply, a garaging address is the location where you park your vehicle when you lay your head down to sleep on a regular basis.

Your insurance provider will calculate your auto insurance premium based on the likelihood of you submitting a claim; therefore, the more secure your car, whether in motion or while parked, the lower your auto insurance rate.

Your provider will look at a variety of factors related to your garaging address to access the level of risk to your vehicle, and how low or high your premiums will be.   If the place you park your vehicle isn’t at your home address, it’s your responsibility to let your auto insurance provider know where the vehicle is parked most of the time.


Reasons Your Address Impacts Your Auto Insurance:

High Traffic

Living in busier regions with a lot of traffic will typically impact your premiums since more cars on the road increases your risk of a car accident. Auto insurance providers will accordingly offset some of this risk by increasing premiums for those living and parking in notoriously busier neighbourhoods. Generally, those living in urban areas can expect to pay higher auto insurance premiums than those living in rural areas.

Claims Experience

Certain areas experience high rates of vehicle collisions. This could be the result of several factors including a higher vehicle population, the age of the driving population, the cost of getting your vehicle fixed in certain regions, and more. If your vehicle’s garaging address falls within one of these high collision areas, then you can expect to pay higher auto insurance premiums.

High Crime

How safe is your neighbourhood? If the area where you park your vehicle has a high crime rate – such as a high number of break-ins – then it will increase the risk of your car being stolen or damaged. Should your garaging address fall within this area, then your premiums may be higher in order to compensate for this risk.


Tip: Always Update Your Garaging Address

It’s critical to keep your garaging address updated with the correct address at all times. If you move to a new home, then your auto insurance provider will want to know your new address to re-assess the level of risk. If you’re considering relocating to a new area and are budget conscious, then you may want to get in touch with your auto insurance provider to find out what impact you may be looking at in this new locale, to avoid sticker shock following your move. Taking your vehicle on an extended stay at another location can also affect your premiums – whether you go away to college/university, stay with a friend or family member for a while, spend time at a vacation home, or another circumstance in which your car will be parked somewhere other than your garaging address.

Not letting your auto insurance provider know you’ve changed addresses – whether permanently, or for an extended period – could result in challenges getting your claim approved if your car is damaged or stolen while parked in this new location. If you provide the auto insurance provider with an address that isn’t your own to avoid paying higher premiums, you could be charged for insurance fraud.

Not only should your auto insurance provider be contacted with your new garaging address, but your driver’s license and vehicle ownership should also be updated with any address changes.


Your Insurance Broker Can Help.

If you’re on the hunt for auto insurance and are trying to wrap your head around all the factors that can affect your rates, then working with an insurance broker can take the stress out of your search! With so many auto insurance options across Ontario, it’s easy to feel a little overwhelmed; we’ll work closely alongside you to understand your needs and present you with great, affordable auto insurance options from reliable providers.


The team at Keller & Associates has the experience, expertise, and dedication to outstanding client care to help you find the right coverage for your vehicle, with an insurance premium that fits your financial needs. Reach out to us today to learn how you can save more!