Managing Your Car Insurance When Moving

An average of 40 million Americans pack up their belongings and move every year.While car insurance may not be your first thought during a move to a new home, it should be. Moving can be stressful, but updating your auto policy doesn’t have to make it more difficult. The Bankrate insurance editorial team explains in just a few steps how to update your auto policy information.

Are you required to update your car insurance when you move?

You will need to update your auto insurance policy every time you move.Even if your move is within your current state, or within your current zip code, you need to contact yourauto insurance providerUpdate your address. Car insurance companies set rates based upon risk. The risk of your vehicle being insureable can change when you move into a new house.

It is important to update your auto insurance if you move to a different state.Car insurance requirementsState laws varyYou will need to follow the laws of your new state when you move across state lines. While your current insurer might be able to sell policies in the new state, you will still require a new policy. If your existing insurer is not licensed in writing policies in your new state you will have to complete the procedure ofSwitching carriersTo an insurance company that is licensed to operate in the new area.

What is the best time to change your car insurance when you move?

It is crucial to manage your car insurance while you are moving. You only have a limited time.

Many states have regulations that require you to transfer your license and registration within one-three months of establishing residency. This means that you will need to update your insurance to comply with local requirements. Check with your state’s Department of Motor Vehicles for specific requirements.

You may be required to change your address by your insurance company even earlier. Ask your insurance company about their specific guidelines.

Do I need to have new insurance before I can register my car in a different state?

You will need proof of insurance to register your car in the new state. You should begin looking for new car insurance policies as soon as you move into your new home. There is only one to three months left to register your car. Make sure to take the time to research providers and select a policy.

How can you change your car insurance policy after moving?

These steps can help you seamlessly switch your car insurance after you move.

  1. Get quotes from several insurance companies.Your current insurance company may be able to provide coverage in your new location, but it is not guaranteed that they will offer the lowest rates. You may want to look into multiple insurance companies if you’re moving within your state. The cost of a carrier’s premium can differ in different parts of the state.
  2. Learn about your cancellation policy.While it’s not very common, there are some companies that charge a termination fee for cancelling your policy before the term ends. Insurance agents advise not to wait to transfer your policy to a new state in order to avoid paying the cancellation fee. It is crucial to ensure your financial health by obtaining your policy in your new state.
  3. Confirm the date of your policy’s inception.It is important to ensure that you don’t have any gaps in coverage between policies. This is not only against the law in all states that require auto insurance, but also puts you at great risk. To avoid coverage lapses or overlap, make sure that your new policy starts on the day you cancel your previous one.
  4. Cancel your existing insurance policy.Be aware that not all insurers require cancellation notices. Make sure you don’t get double-billed for insurance once your new policy is in effect.

Check with your insurance provider to see if there are any additional requirements.

Is moving a factor in your car insurance rates?

Yes, even moving within the same area can impact your car insurance rates.Most states, but not California, use your ZIP code to determine their car insurance rates. Insurance rates can be affected by factors such as population density and accident frequency.

The average cost of car insurance per year varies significantly among states. Rates can vary greatly between cities in the same state. Car insurance rates are determined based on factors like crime and population density. This means that two cities may have very different average premiums.

You might be able to lower your premium if you live in an area where car insurance is expensive. Many of the best car insurance providers offer discounts that could help you lower your premium. When researching companies, you might want to see which deals are available to you.

What are some other considerations after you move?

You don’t just need to update your auto insurance to be able to drive legally in your new state. Also, you should:

  • Transfer your driver’s licence.To update your driver’s licence to your new state, you may just need to bring your current license and additional identification. In some states, however, you might need to pass a vision or written test. For more information, please contact your local DMV.
  • Register nowYou can register your vehicle in the new state while you’re at DMV to get a new license. To do this, you will need to provide proof of current insurance.
  • Get in-state license plates.After you have registered your vehicle, the DMV will mail your new license plates. Attach them immediately to your car. Check with the DMV for instructions on how to get rid of them.

Each state is unique, so it’s important to check with your local DMV after you move. This will ensure that you have taken all necessary steps to become legally licensed to drive in your new state.

Questions frequently asked

How can I save money on car insurance?

Different providers offer different prices depending on your ZIP code. You may need to compare quotes from top carriers in your region and get them all. It is worth checking to see if any discounts are available to you. Many providers offer discounts for safe drivers, as well as deals for students, teachers, and military personnel. If you are also shopping for homeowners insurance, many providers will give you a discount on both policies if you bundle.

Do I need to keep my existing car insurance company when I move?

The decision to stay with your current provider or go elsewhere will depend on the driver. Different ZIP codes have different rates, so even if you move within the same area, your current provider might charge more or less. Moving across state lines can offer you the opportunity to obtain quotes from other companies even if your current carrier has policies in your new state.

Can I switch to a different car insurance provider if I have an open claim against my current carrier?

While some companies allow you to change carriers while you have an active claim, there could be payout issues. If you have an open claim against another company, your new provider might not be able accept your business. Because a company doesn’t know the amount of the final payout until the claim is closed, the new provider cannot accurately rate your policy. You might want to consult your company if you have an open claim before you switch to a different provider.