5 Things You Should Tell Your Auto Insurance Company in 2025 (+Why it Matters)

It is important to tell your insurance company about any changes that affect your auto insurance policy. Things you should tell your auto insurance company include changes in driving habits, any accidents, new drivers or vehicles, and address changes.

Neglecting to update your insurance company on changes can cost you more money than you bargained for and leave you without the coverage you need when you need it most. Read on to learn about the most important things to inform your insurance company about.

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What You Should Disclose to Your Insurer

You should always disclose specific things to your insurance company to ensure you’re getting the coverage you need at the price you deserve. Regularly updating your insurance company is crucial for keeping your policy up-to-date and ensuring you’re getting the best possible deal on full coverage auto insurance.

If you want to make sure that you’re fully covered and not missing out on any savings, here are the five things you should tell your auto insurance company.

Accidents, Tickets, and Driving Violations

Don’t delay telling your insurance company about an accident you were involved in or any tickets or driving violations. In most cases, tickets and driving violations will be checked every renewal period.

Accidents are an especially important thing to tell your insurance company about. While you can expect a rate increase, it is important that insurance companies know of any major incidents and file a claim promptly.

We know that accidents can be stressful and overwhelming, but the truth is that calling your insurance company after an accident is crucial for getting the support and financial assistance you need.

Your insurance company will need to know the details of the accident, such as when and where it occurred, as well as any injuries or property damage that resulted from the accident. They can then use this information to start the claims process and get you the financial support you need to cover repair or injury costs.

Read More: Complete Car Accident Checklist

Reporting an accident to your insurance company can help protect you from potential legal and financial repercussions. If the other driver involved in the accident decides to take legal action against you, your insurance company will have a record of the incident and can provide you with legal support if necessary. And let’s be honest, no one wants to deal with a lawsuit or unexpected out-of-pocket expenses.

Change of Address

If you move, you need to let your auto insurance provider know. Not informing your provider of a change of address is considered fraud, which is why it’s one of the most important things to disclose to your insurance company.

The reason your address is so important to providers is related to risk, which affects your rates.

Certain locations have more claims filed, due to risks like heavy traffic, weather patterns, theft, vandalism, and other local factors.

Learn More: How Insurance Companies Calculate Your Car Insurance Rate

To give you an idea of how rates can vary among locations, we put together average rates by state below.

Even moving one county over could result in a rate change. So, make sure to tell your provider when you move. It’s also important to inform a provider of a change of address prior to moving in case they don’t provide insurance in your new state, so you have time to get a new insurance policy.

New Drivers in Your Household

If you frequently lend your car to friends or family members, it’s important to inform your insurance company right away.

Here’s why: auto insurance policies are typically tied to the vehicle and the driver. So, if someone else gets into an accident while driving your car, your insurance policy may be on the hook for the damages. That means your insurance rates could increase, or you may face other consequences like canceling your policy or being dropped from your insurance company altogether.

Depending on your situation, your insurance company may recommend adding your friend to your policy as a secondary driver or adjusting your current policy to include occasional use by others (Read More: Can I add or remove drivers from my car insurance policy?). Your friend may also be advised to purchase non-owner car insurance.

By being proactive and informing your insurance company about other people driving your car, you can avoid any potential headaches and stay fully protected.

New Vehicles You’ve Purchased

If you’ve bought a new vehicle, inform your insurance company immediately to get it added to your policy. Driving without insurance on a vehicle is illegal and could result in fines and fees if you are caught.

Learn More: What happens if you get caught driving without insurance?

In most cases, a dealership will request insurance information when you buy the car, so you will have to get coverage before finalizing the purchase if you don’t already have a policy.

Insurance companies often allow you to easily add a vehicle to your coverage through your online account, or you can give customer service a quick call.

Changes in Your Driving Habits

As a driver, you may not realize that your driving habits significantly impact your auto insurance rates. When you apply for auto insurance, your insurance company will consider several factors, such as your age, gender, driving history, and car type. However, your driving habits are also an essential factor affecting your auto insurance rates.

For example, do you frequently take long road trips, or do you primarily use your car for short commutes? Do you drive in high-traffic areas or on quiet rural roads? Are you a cautious driver who always follows the speed limit and avoids aggressive maneuvers, or are you more of a risk-taker who enjoys pushing the limits?

By sharing this information with your insurance company, they can better understand your driving behavior and tailor your insurance policy accordingly.

For instance, if you’re a low-mileage driver who mainly drives in low-risk areas and has a clean driving record, you may qualify for a lower premium with, especially if you join a usage-based program that tracks your driving habits and mileage.

Company	Program	Savings	Tracking
	Drivewise®	40%	Mobile app
	Signal®	15%	Mobile app
	DriveEasy	25%	Mobile app
	RightTrack®	30%	Mobile app or plug-in device
	Pay-Per-Mile	35%	Mobile app or plug-in device
	SmartRide®	40%	Mobile app or plug-in device
	Snapshot®	30%	Mobile app or plug-in device
	Drive Safe & Save™	30%	Mobile app
	IntelliDrive®	30%	Mobile app
	SafePilot®	30%	Mobile app

On the other hand, if you’re a high-mileage driver who frequently travels in high-risk areas and has a history of accidents, you may have to pay a higher premium as you won’t qualify for low-mileage car insurance discounts.

Overall, being honest about your driving habits with your insurance company can help you get the right coverage at the best price. So, the next time you talk to your insurance agent, don’t hesitate to share your driving habits and make a list of questions to ask your auto insurance agent about discounts – it could save you money!

Consequences of Withholding Information

Not telling your auto insurance company about important changes that affect your policy could result in your insurance company dropping you as a client, leaving you without insurance. Worst case, you could even be accused of auto insurance fraud for lying about an address or accident.

The best policy is to always inform your auto insurance company about major changes that could affect your rates, such as adding a new driver, car, or being in an accident.

Need to find reliable auto insurance coverage today? Use our free quote tool to compare rates at affordable companies in your area.