How to Manage Your Car Insurance During a Move

Do you have to change car insurance when you move states? This question is often top of mind for drivers when moving out of state – and for good reason. Whether or not you will need (or want!) to change your auto insurance policy will depend on your new state’s requirements. While relocating out of state often involves a number of moving parts (think: changing addresses, scheduling movers and packing belongings – just for starters), managing your car insurance should be an easy item to check off that to-do list. To answer all of your questions on managing car insurance during a move, read our Q&A below.

Do you have to change car insurance when you move states?

Possibly. If your new state requires an increased level of coverage, you may need to consider changing car insurance companies and/or changing your policy to reflect the state’s specific requirements. The reason? Different states have different requirements for the level of coverage that a driver needs. Of course, if your new state has lower coverage limit requirements, you may be able to lower your premium. However, as DMV.org points out, lowering your coverage limits also means increasing your risk. So make sure to assess the pros and cons of each policy option before lowering or increasing your coverage.

So how do I learn about my new state’s requirements?

Don’t wait until the last minute to find out if your auto insurance policy needs to be changed. Driving in a new state without any sort of car insurance is illegal (in every state!), so it’s important to avoid having a gap in coverage. Once you know that you are definitely moving, go ahead and call your car insurance company to inform them about the move. According to DMV.org, when speaking to an insurance agent, ask them whether the company does business in your new state and whether you need to change your coverage. You should also inform them if you plan to add or remove drivers from the auto insurance policy.

What if I’m moving to a “no-fault state”?

If you’re moving from a non no-fault state to no-fault state, you’ll most likely need to change your car insurance coverage. The auto insurance agent should be able to tell you whether or not this is necessary. No-fault insurance (often called personal injury protection) is a type of auto insurance that covers any medical bills, income losses and/or funeral expenses due to a car accident, regardless of whose fault it was (yours or the other driver). While not all states require drivers to carry no-fault insurance, several do. According to Nationwide, the 18 states that require no-fault insurance (as of 2016) include: Arkansas, Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, Texas, Utah and Washington. The remainder of U.S. states are referred to as “tort states,” meaning that the person who was actually at fault for the accident is responsible for covering damages caused by the accident.

Why could moving potentially change my car insurance premium?

When determining your premium, car insurance companies look at a wide range of factors that could potentially affect your driving abilities or increase/decrease your likelihood of filing a claim. According to DMV.org, traffic patterns, crime rates and your state’s risk of natural disasters all affect your premium. These factors vary from state-to-state. For instance, a Floridian driver’s risk for hurricane damage is dramatically higher than an Illinois driver’s risk. Those living in areas with more crime (think: large cities) may need to up their coverage to pay for potential vandalism or car theft. In addition, where you move may change how often and how far you will be driving on a daily basis. For instance, if you’re moving somewhere that requires a farther work commute (read: increased mileage), you may need up your coverage.

What do I do after purchasing a new car insurance policy?

Speak with an agent at your car insurance company to confirm the start dates of your new policy. Inform your former car insurance company that you’ll be switching providers and confirm an end date with the company. If using the same insurance provider, confirm an end date for your old policy. Request your new insurance cards and keep them with you in your wallet.

How do I receive car insurance quotes?

When moving, we recommend receiving quotes from at least three different providers to compare your coverage options. Believe it or not – insurance costs can vary widely from provider to provider. Each car insurance company places different amounts of emphasis on different factors. For instance, while one may weigh crime rates more heavily, another may place more emphasis on natural disaster risk. To receive car insurance quotes, simply call various providers to request an estimate. Many companies also provide free quotes on their website.

Do I need to register my vehicle in a new state?

Yes. In addition to changing your auto insurance policy, you’ll most likely need to register your vehicle in the new state. Requirements vary from state to state, but most require that you register the car within the first month of occupancy. Simply head down to your local DMV with your paperwork and ID requirements in-hand. Registering your car and receiving a new state driver’s license should (hopefully) be a quick and painless process. While visiting the DMV, you may be able to register to vote as well.

Ready to move to a new state?

A long distance move often means a complicated relocation process. If you’re unable to drive the car to the new state, you may need to consider various auto transportation options. Fortunately, we can assist with all of your auto transport needs. All you have to do is submit your auto transport move request to receive various car shipping quotes from our many licensed and insured auto transport partners. In addition, you can check each company’s credentials through the Better Business Bureau (BBB) website, as well as the Federal Motor Carrier Safety Administration’s website. Best of luck and happy moving!