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Switching Car Insurance When Moving Out of State

Switching Car Insurance When Moving Out of State

Moving can be stressful because you often have to relocate every aspect of your life. This is usually the case with your material possessions, but what about the more bureaucratic facets of your life, like car registration and insurance? It’s important to make sure your car insurance matches your new place of residence. It’s true that car insurance does follow the car itself, but every state has its own rules regarding drivers and the insurance they must carry. We’ll explore all this and more when it comes to car insurance for policyholders that are moving in this post.

Why Does Car Insurance Need to be Adjusted When You Move?

You should ways notify your insurer when you are moving. A new policy from a new provider may be in order if your current one doesn’t underwrite in the state you are moving to. Changes are necessary because the state you are moving to may have different insurance requirements. This is usually expressed in the digits -25/50/20 as in $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $20,000 in property damage. This may be the case for certain states, while others may even double those coverage limits to 50/100/40. If you’re moving to a state with different limits such as these, then you may have to adjust your coverages. Penalties for driving with not enough insurance include fines and jail time, so you always want insurance to be your top priority.

How to Change or Transfer Insurance When Moving

It’s simple to transfer auto insurance from one state to another, and it may save you money depending on where you’re moving. If your old insurance provider will not cover vehicles in the state you’re moving to, you’ll have to look for another. This all may come off as stressful, but not if you follow the steps listed below.

Contact Your Insurer

The first thing to do is inform your insurance company about your impending move. You should ask them if you can continue being a policyholder in the area where you are moving. If unable, they can help you find a reliable provider in your new place of residence. Always be aware of if your insurance is canceled or not since your insurer may not inform you.

Learn Your New Home’s Minimum Coverage Requirements

Now, it’s time to look up how much car insurance you must at least have in your new home state. It can be less than or greater than the amount you currently have. There is a chance they are the same. These state car insurance requirements are only in place for liability and property damage, otherwise known as basic insurance. Whether you opt for additional full coverage is up to you.

Purchase New Policy

Even though you have purchased a new policy, you shouldn’t cancel your old one just yet to avoid gaps in coverage. When it comes to your new policy, you may notice some rate differences on account of the different zipcode you now use. Zipcode risks can come from the population size, crime rates, and traffic. For example, if you’re moving from a rural neighborhood to a city, then rates will be higher.

Update Your Driver And Car Documentation

You have your new insurance policy, but does your other vehicle documentation like license and registration match your new residence? Usually, the state’s DMV will not update your information until new proof of insurance and residence is provided. There’s also time limits in which the information must be updated, or there will be penalties. Being pulled over with outdated information can exacerbate issues.

You Should Always Inform Your Car Insurance Provider

Even if your rates increase, you must immediately notify your automobile insurance provider after moving. Because vehicle insurance is controlled by the state, your old policy must adhere to the regulations of your new residence.

What if The Relocation is Short-Term or Temporary?

You typically will not need new car insurance if going away for things like business trips. The trips that are months long, maybe even a year, are the ones where a new insurance policy would be needed. A good rule of thumb is that if you are receiving mail at a certain location, then it is your home.

What if You Work For The Military?

It’s not unusual for military personnel to move between bases. Fortunately, most states allow military personnel to keep their insurance coverage active in the state they reside in. This enables them to live their lives without having to change things on a regular basis. Remember that each state has its own set of regulations. If you’re in the military and want to know whether this regulation applies to you, contact your insurance provider to see if you qualify.

What if You Don’t Have a Permanent Address?

You’ll almost certainly be required to provide an address in order to obtain a new policy. It’s one of the most important elements that influence your premium. You may inquire about it with your agent and receive an answer. For example, if you’re renting while preparing for a house and living with a friend, you might be able to take advantage of their address until then. Once you’ve established residency in your own home, you can start a policy. Another option, if you’ve signed a lease, is to give the address. It’s critical not to wait until you’ve completely adjusted before updating your insurance. It might take months to complete, leaving you uninsured for much of the time. Contact your insurance provider and develop a plan that works for you so that you may travel safely.

What is The Time Window For Changing Insurance?

You should immediately change your insurance if you move. If you do, you’ll avoid all the messy gray areas that might develop after a vehicle accident in a new state. Car insurance companies typically give two to three months to complete the new policy process. If you don’t change providers immediately, your insurance provider may be able to terminate your policy without notice, which is the last thing you need.

What Are Penalties For Not Changing Your Policy?

If you don’t pay your premiums on time, your coverage may be canceled or suspended without notice. This appears to be a minor problem when examined alone; however, when combined with an uninsured moment, it has the capacity to substantially raise your risk perception. This can result in a significant increase in your annual premiums. You’re also putting yourself at risk of penalties and legal problems. These can vary significantly, but some jurisdictions may even suspend your drivers license.

Looking for reliable car insurance? Request an affordable car insurance quote online today with Insurance Navy. Since 2005, we have been providing drivers with affordable car insurance. You can even call 888-949-6289 to speak with an agent if you need further assistance. In-person help is also available at any of our locations.

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