If I move to the city will my rates go up?

Do I pay more for insurance if I live in the city?

Insurance questions cannot be given a blanket yes or no. Insurance advice needs to be addressed to your situation. This is where TurnersTips differs from other insurance help websites.

Home Insurance

City rates are better for home insurance. Why? The fire protection in a city is provided by professional full-time firefighters. There will be a quicker response time when an alarm is sounded. As well the firefighters will have the modern, up-to-date equipment that is necessary to deal with the situation. Fire hydrants will be accessible and an adequate supply of water available.

This applies to all the forms of insurance including homeowners, tenants, condominium unit owners, seasonal or secondary homes, cabins, rented dwellings, and even commercial buildings.

The next best home insurance rates will be for town residents that have a strong volunteer fire department. The insurance companies have determined which towns have better protection then others for fire. So support your local fire department so they have good training and up-to-date equipment and it will eventually result in a better insurance rating for your community.

Once you leave the town boundaries the insurance companies look at how far you are from a responding fire hall. If you are under 13 km using a road that is open all seasons then you will receive a better rate then someone living beyond that point. The only way to negate this is to build your own pumping station with a water source and have it approved by the insurance company. This is expensive and rarely done.

You need to ask about sewer backup premiums. The insurance companies have paid out a lot of money in water claims. So now certain higher risk areas have been targeted. If you live in one of these areas you could see a $35/year charge going up to $150 or even $400 per year.

Some examples of other factors that will affect your rates include the age of the dwelling, type of structure, alarm and security systems and the capacity of the insurance company. Capacity is when a company has insured many of the units in a high-end condominium building then they may not want to have more.

Auto Insurance

Usually you pay more for auto insurance in the city then in the country. Definitely the Public Liability and Property Damage (PLPD) that is the minimum requirement is more than outside the major cities. Why? The risk is higher because there is more vehicles on the road. So if you commute on a daily basis from the country to the city you will still pay less for your PLPD.

Where it gets interesting is in the Section C coverage. This is for collision and comprehensive or specified perils. Some insurance companies will charge higher rates for the comprehensive and specified perils for people who live outside the city. Certain areas of the city will have higher rates for collision as statistics show more accidents will happen there.

So there is no pat answer for everyone. Generally it can be said that city drivers pay more for insurance than a country driver. The only way to be absolutely sure of your situation is to go to a broker or agent who represents a number of companies. Have them quote you for your particular case.

An experienced adviser will be able to guide you to the company that will meet your needs. There is more then price to consider when you talk about auto insurance. Accident forgiveness, loss of use rental and waiver of depreciation might factor into your choice. Ask questions and take control of your insurance.