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Do You Have To Change Car Insurance When You Move States?

Do You Have To Change Car Insurance When You Move States

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, driver’s license, and auto insurance?

Do You Have To Change Car Insurance When You Move States?

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 car drivers and the car insurance they must carry.

We’ll explore all this and more when it comes to car insurance for policyholders that are moving to a new state in this post.

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

You should always notify your auto insurer when you are moving to another state.

A new auto insurance policy from a new car insurance provider may be in order if your current auto insurance company doesn’t underwrite in the state you are moving to.

Changes in your car insurance policy are necessary because the state you are moving to may have different auto 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 car insurance coverage limits to 50/100/40. If you’re moving to a state with different car insurance limits such as these, then you may have to adjust your auto insurance coverages. Penalties for driving your vehicle with not enough car insurance include fines and jail time, so you always want car insurance to be your top priority.

How Can I Change or Transfer Auto 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 car insurance provider will not cover vehicles in the state you’re moving to, you’ll have to look for another car insurance company.

This all may come off as stressful, but not if you follow the steps listed below.

Contact Your Auto Insurer

The first thing to do is inform your auto insurance company about your impending move to a new state. You should ask your auto insurers if you can continue being a car insurance policyholder in the area where you are moving.

If unable, your old car insurer can help you find a reliable auto insurance provider in your new place of residence. Always be aware of if your auto insurance is canceled or not since your car insurer may not inform you.

Learn Your New Home’s Minimum Car Insurance 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 of car insurance coverage you currently have. There is a chance the amounts of car insurance coverage are the same.

These state car insurance requirements are only in place for liability and property damage, otherwise known as basic car insurance. Whether you opt for additional full car insurance coverage is up to you.

Purchase New Car Insurance Policy

Even though you have purchased a new car insurance policy, you shouldn’t cancel your old car insurance just yet to avoid gaps in car insurance coverage.

When it comes to your new car insurance policy, you may notice some auto insurance 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 car insurance rates will be higher.

Update Your Driver’s License And Car Documentation

You have your new car insurance policy, but does your other vehicle documentation like driver’s license and vehicle registration match your new residence?

Usually, the state’s DMV will not update your information until new proof of car insurance and residence is provided. There are also time limits in which the information must be updated, or there will be penalties. Being pulled over with outdated information on your driver’s license and vehicle registration documentation can exacerbate issues.

Should You Always Inform Your Car Insurance Provider?

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

Do You Have To Switch Car Insurance if The Relocation to Another State 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 vehicle 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.

Do You Have To Change Auto Insurance 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 vehicle 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 when it comes to car insurance. If you’re in the military and want to know whether this regulation applies to you, contact your vehicle insurance provider to see if you qualify.

What if You Change State but Don’t Have a Permanent Address in the New State?

You’ll almost certainly be required to provide an address in order to obtain a new car insurance policy. Zip Code is one of the most important elements that influence your car insurance premium. You may inquire about it with your vehicle insurance 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 new vehicle insurance 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 vehicle 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 Auto Insurance After You Moved to Another State?

You should immediately change your vehicle insurance if you move to a new state. 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 vehicle insurance policy process. If you don’t change car insurance providers immediately, your auto insurance provider may be able to terminate your vehicle insurance policy without notice, which is the last thing you need.

What Are Penalties For Not Changing Your Vehicle Insurance Policy After Switching States?

If you don’t pay your auto insurance premiums on time, your vehicle insurance 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 car insurance premiums. You’re also putting yourself at risk of penalties and legal problems. These can vary significantly, but some jurisdictions may even suspend your driver’s 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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