If you're planning to relocate to a new place, whether within your state or across the country, you have a lot to consider. What should you take with you? What should you leave behind?
Should you buy or rent in the new location? What are the school districts like? How much will it cost to move your stuff, and can you write off this move on your taxes?
That's just the tip of the iceberg. If you think moving costs are limited to just paying moving professionals to pack and transport your belongings, think again.
Moving oftentimes comes with surprise costs. Here are some of the unexpected expenses that come with moving and a few tips for sidestepping them.
Auto insurance costs
Your auto insurance profile may change because of your new location. "When you move from a more rural market, less population, to a highly densely populated urban environment, you can see swings (in your car insurance rates) probably anywhere from 15 (percent) to 50 percent," says Dan Young, senior vice president of insurance relations for Carstar, a network of 400 body repair shops located in the U.S. and Canada.
The exact amount depends on the area's accident rate and the customer's driving and claims history.
If moving out of state, you may have to buy more insurance coverage, too. Each state has its own minimum liability requirements and some require drivers to purchase personal injury protection and uninsured motorist coverage.
Also, if you're moving from an area where incomes are modest to a place where they're higher, you may need more coverage, Young adds. "In rural Iowa, you may not run into Lamborghinis or a vast amount of Mercedes Benzes," he says, "but you move to New York City and you're out driving around, you'd better be fully covered."
When planning a move, Young advises consumers to ask their insurance company about rate changes and whether they need to purchase more coverage.
Parking fees
Along with higher car insurance costs may come increased parking fees, says Bryan Pritchard, owner of Tricap Preferred, a luxury apartment locator service in Chicago.
"Parking is typically not included in rent," he says, adding that a primo parking space can easily tack on an extra $200 to $300 to your monthly rent in a big city.
The best way to avoid extra parking fees along with increased car insurance and servicing costs is to ditch your vehicle entirely, says Pritchard.
While public transportation may suffice in larger cities, those living in areas without bus or subway access may be able to use car sharing and car pool services instead of having their own ride.
If getting rid of your car isn't a viable option, make sure you're aware of what it costs to park in or near your building and workplace.
Health insurance hikes
Like car insurance, health insurance can change when you switch homes, especially if you're moving out of state.
"Not every health insurance company is licensed in all 50 states," says John Egan, managing editor of InsuranceQuotes.com, a Bankrate site. Even if it is, your insurance provider can change the plan you're on, the health care network you have access to and the rate you're charged.
Egan adds that health insurance mandates vary among states, too. "There may be some types of (medical) procedures, for instance, that are covered in one state and that are not mandated to be covered in another state," he says.
Unless you're getting health insurance from an employer or spouse's employer, switching insurance companies as a result of a move will likely mean undergoing medical underwriting, Egan says, which could result in a substantial change in premium or a flat-out rejection if you have certain pre-existing conditions.
The only way to fight escalating health care costs is by careful comparison-shopping. An independent broker may also be able to help compare policies apples to apples.
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