Reader’s Question:

I am moving from Colorado to Tennessee. I would like to know if my car insurance will increase or not?

Brian

Colorado Springs, CO

 

The minimum liability limits required in Colorado is

$25,000/$50,000 Bodily Injury Liability
$15,000 Property Damage Liability

In Tennessee the minimum liability insurance required is

$25,000/$50,000 Bodily Injury Liability
$15,000 Property Damage Liability

Both states have the same limit however car insurance rates are still being determined depending on state laws and car insurance provider’s rating system.

Coverage limit depends on what the state law requires. It is thus, a prerequisite if you are moving to know the required coverage limit within the new state, of which the new policy could apply. You can do online research before making some changes on your insurance policy. Determine what is required, and then check on several companies for multiple rates you could compare with. Any changes made on the coverage would also mean changes on the premium rates. Always be on the lookout for discount rates insurers offer online.

There’s no standard pricing set for all auto insurance companies, so the rate would be independent from one insurer to another. This makes the market in auto insurance very competitive. The tighter the competition, that also gives the shopper better options on compensation coverage and premium deals. The buyers’ standards now will be dependent of the company’s rate system for statistically measuring risk for the driver. With application forms available online, you could get quotations from several companies free of charge and compare them base on premium rates.