Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.

An entity which provides insurance is known as an insurer, insurance company, or insurance carrier. A person or entity who buys insurance is known as an insured or policyholder. The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer’s promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms, and must involve something in which the insured has an insurable interest established by ownership, possession, or preexisting relationship.

The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated. The amount of money charged by the insurer to the insured for the coverage set forth in the insurance policy is called the premium. If the insured experiences a loss which is potentially covered by the insurance policy, the insured submits a claim to the insurer for processing by a claims adjuster.

Expatriate insurance policies are designed to cover financial and other losses incurred by expatriates while living and working in a country other than one’s own.

Insurance should be arranged prior to relocating to a new country or destination. Policies will generally cover the duration of your stay and can be purchased on a 6-month to annual basis. It is important to purchase this insurance from a reputable company.

The most common insurance policies purchased by expatriates include:

• Personal property
• Automobile insurance
• Personal liability insurance
• Emergency evacuation
• Medical and dental coverage
• Short-term travel insurance
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In some cases, specialty insurance can be purchased for high-risk areas of the world that provide coverage for:

• War and terrorism
• Kidnap and ransom
• Casualty insurance
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There are a number of ways to insure property while overseas.

Personal property insurance will provide coverage for all your valuable items. This type of cover is usually attached to a home insurance policy which will provide coverage for all “fixtures and fittings within the home” and “additional items of increased value”. With a home insurance policy it is possible to include specific items on a “worldwide all risks” (WWAR) basis which will protect your valuables outside of your home. Insurers will typically require proof of value when insuring WWAR items and the addition of these items will increase the plans premium. In the USA this type of plan is commonly referred to as “renters insurance”, although the scope of these policies overseas can have much wider implications.

Home insurance is different from fire insurance which protects the physical structure of the home and all rebuilding costs. Fire insurance policies are normally only obtained in the case that an individual actually owns the property and can be extended to cover “extra” or “allied perils”. Extra perils can usually be added to a policy at the expense of an increased premium and can include typhoons/hurricanes/cyclones, flood damage, landslip and subsidence, and what in the USA is referred to as “an act of God”. If you are expecting to be overseas for a short period of time it is highly unlikely that you will purchase a fire insurance policy unless otherwise stipulated in your tenancy agreement.

For individuals who are relocating overseas international transport insurance is usually a valuable plan. These plans are extremely broad in their scope and if the items insured are being shipped to their destination then the policy will usually be subject to marine insurance and maritime law. This includes all principals of average, salvage (different from the salvage found in property and auto insurance), and sue and tort. International transport insurance can be complicated as there are many different areas of consideration, typically an insurance company that deals with this area of insurance will have dedicated international transport specialists.

Property insurance claims can be complicated and are usually settled in the following ways:

• Indemnity – The payment of monies to the insured to cover the loss. This is also known as a “Cash payment”.
• Repair – Payment to a repairer to fix the damaged item or property.
• Replacement – With new items, property, or items that are likely to suffer very little depreciation, the insurer may choose to simply give the insured a new item that is the same as the one that was lost. This can be beneficial to the insurer, especially if they can obtain a discount from the supplier.
• Restoration – Typically this means the restoration of the item or property to the condition that it was in immediately prior to the loss.
• New For Old – the substitution of a new item that acts the same way as the item that was lost or damaged.
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It is important to check the policy schedule and understand in which way claims on a specific policy will be settled. Marine Insurance or marine-related insurance policies have long and complex claims procedures that are best left to experts.

Expatriate international auto insurance

Automobile primary liability (also known as third party liability) insurance is generally a required purchased in the country in which you are located. Local governments will require this in order to register your vehicle. Be aware that limits of coverage can be very low in some countries. If you are uncomfortable with the level of coverage available with third party coverage, you may wish to obtain comprehensive motor insurance. This type of plan can increase coverage to an appropriate level of protection.

Be aware when shopping for third party liability insurance that rates may vary drastically. Do not assume that the premium quote you receive is the standard within that country. Shopping for competitive rates is as essential abroad as it is in the United States or Europe.

It is very difficult to transfer auto insurance from country to country. No claims discount (NCD) or no claims bonus (NCB) may be transferred, however, and offer substantial discounts for expatriates worldwide.

The main types of auto (or motor) insurance available internationally are:

• Third Party Coverage – This will provide coverage for an individuals liability at law to any third parties who have died or been injured, or any damaged to property resulting from an accident.
• Third Party Fire and Theft Coverage – Comprising the scope of cover described above with the addition of property insurance on the vehicle but only in terms of a loss resulting from fire or theft.
• Comprehensive Coverage – This is the insurance with the widest scope of cover. It includes both Third party, Fire, and Theft coverage with the addition of “all risks” insurance. Typically the premiums for Comprehensive Vehicle Cover are the highest on the market.

Different countries will have different requirements in regards to the minimum amount of coverage that an individual must have. These requirements are usually set forth by the country’s Insurance Authority or Regulator. In nations that where previously British Colonies it is usually the case that every vehicle should be covered under a basic Third Party Liability Plan or ACT policy. ACT Insurance refers to the British Road Traffic Act of 1930, which laid out the basic requirements for motor insurance at that time. ACT insurance will only cover the insured for any death or injury resulting from an accident.

If you are unfamiliar with the laws regarding motor insurance in the country that you have relocated to you should talk to an insurance professional (either a real estate broker or agent) for more information.

Expatriate international health insurance

If you are not covered under a group medical insurance program, an individual international medical policy could be purchased. These policies include worldwide medical protection and also can include evacuation services. Many of these plans have direct-pay with hospitals & global networks worldwide as well as worldwide emergency assistance to help you find the best facilities to treat your conditions. Cost of expatriate insurance depends on a myriad of factors, including your age, medical history, country of coverage, national resources and In many cases, a country’s level of industrialization. However, international healthcare and insurance may be less expensive than US domestic insurance and healthcare.

An International Health Insurance policy will typically calculate premiums based on a policyholder’s age, current medical history, and area of coverage, rather than on their claims history. These plans usually offer one of two areas of coverage: Worldwide; or Worldwide excluding the USA (other countries

Drivers in big cities tend to pay higher car insurance prices than drivers in smaller cities. Big cities tend to have higher crime rates, more traffic, and more claims. It’s simple math.

These high insurance prices lead some drivers to ask a question: can I continue using a different address after I move? If I move to the big city from a small town, can I continue using my previous address to get lower insurance rates? If I move out of my parents’ house and into the big city, can I continue using their address to lock in a lower rate? Can I use my old address in another state to avoid paying higher insurance prices in my new state?

Today, we’re answering all your questions about how moving affects the price of car insurance.

You Must Tell Your Insurance Company Where Your Vehicle is Parked at Night

First and most importantly, let’s clear something up: when your insurance company is asking for your address, they want to know where your car is parked at night.

If you lie to your insurance company and claim that you live in a small town when you really live in a big city, then you may be committing insurance fraud. It’s illegal to claim you live at one address while actually living at another.

Your ZIP code plays a role in insurance premiums. Different ZIP codes have different accident rates. Some ZIP codes have higher rates of vehicle theft and vehicle break-ins. Some ZIP codes – like crowded ZIP codes in the middle of big cities – have higher accident rates. Your insurance company uses all of this information when calculating car insurance prices – which is why it’s important you tell the truth on your car insurance.

Typically, moving to different cities within the same state won’t have a huge effect on car insurance premiums. However, moving to a different state can significantly affect your insurance premiums.

What Happens If You Lie About your Vehicle’s Location?

When you apply for car insurance, your car insurance company will ask for an address. You give them the address, then they give you car insurance based on the ZIP code stated in that address.

Your car insurance company won’t check to make sure your vehicle is parked at that address most nights.

However, if you ever need to make a claim, and your car insurance company discovers that you lied about your vehicle’s location, then your claim may be denied.

Let’s say your car is broken into on the street outside your home in the downtown area of a big city. Your car needs extensive repairs. Your car insurance company investigates the claim to verify everything is correct. However, they find that you have listed your address as a separate location in a small town to get lower insurance prices. You might have listed the address of your parents’ house or your girlfriend’s house, for example, in order to lock in a lower rate. If your insurance company discovers you have lied about the location of your vehicle, then your claim could be denied.

Auto insurance companies have divisions called Special Investigative Units. These divisions, aided by law enforcement, will verify all of the information surrounding your claim. This is a crucial part of reducing insurance fraud. If it’s discovered that you lied about your address to get lower rates, then your car insurance claim could be denied or reduced.

Contact your Car Insurance Company to Ensure Your Address Information is Accurate

Lying about your address may seem like a minor mistake. However, it’s a small mistake with big consequences.

Contact your insurance company today to explain your change of address. You don’t want to pay for a car insurance policy that you can’t use. If your car insurance policy lists an incorrect address, then you may not be able to make a claim. The sooner you contact your insurer, the sooner you can limit your liability.

Typically, Moving Won’t Have a Huge Effect on Car Insurance Premiums

Insurance companies take dozens of factors into account when calculating car insurance premiums. Your ZIP code is just one factor of many.

In most cases, moving to a new address in the same geographic area won’t have an enormous effect on car insurance prices, which is why you have little to lose by updating your current address with your car insurance company.

If you’re moving between states, however, car insurance prices can change substantially. Regardless of where you’re moving, however, it’s in your best interest to tell your car insurance company your current address.

Conclusion

Insurance companies lose billions of dollars to fraud every year. Some of this fraud is major: you might ask your friend to steal your car when you leave it unlocked in front of your house. Other fraud seems minor – you might list your parents’ small town address as your home address when you’re actually living in a big city, allowing you to save $200 per year on car insurance premiums. Unfortunately, both of these situations are examples of insurance fraud that could cause your claim to be denied.

Your insurance company needs to know where your car is parked most nights of the week. The ZIP code where your car is parked at night plays a crucial role in determining your car insurance premiums. If you lie about this location in an attempt to get a cheaper rate on car insurance, then your claim may be denied.