Moving to a new state involves countless tasks, and transferring your auto insurance is one you shouldn’t overlook. Each state has different insurance requirements, and your current policy may not meet the minimums in your new home. Here’s a step-by-step guide to ensuring you stay properly covered during and after your move.
Before You Move
Contact your current insurance company at least 30 days before your move to discuss your options. Ask whether they operate in your new state, as not all insurance companies are licensed in every state. If your insurer does operate in your destination state, they can usually transfer your policy and adjust it to meet the new state’s requirements.
If your current insurer doesn’t operate in the new state, you’ll need to find a new company. Start shopping for quotes early so you have coverage lined up for when you arrive.
Understanding Your New State’s Requirements
Research your new state’s minimum insurance requirements before you move. If the new state requires higher liability limits than your current state, you’ll need to increase your coverage. If the new state is a no-fault state and your current state isn’t, you’ll need to add PIP coverage. Some states also require uninsured motorist coverage that might be optional in your current state.
Timeline for Making the Switch
Most states give you 30 to 90 days after establishing residency to register your vehicle and update your insurance. However, it’s best to have your new policy in place by the time you arrive. Driving in a new state with out-of-state insurance is legal temporarily, but your coverage may not meet the new state’s requirements, leaving you at risk.
How Your Rates May Change
Moving to a new state can significantly affect your insurance rates, for better or worse. Insurance costs vary dramatically by state based on factors like average claim costs, litigation rates, weather-related claims, population density, and state regulations. Moving from a low-cost state to a high-cost one can increase your premium by 50% or more.
Steps to Complete After Moving
Once you’ve moved, update your address with your insurance company immediately. Register your vehicle in the new state and get a new driver’s license within the required timeframe. Update your policy to meet all new state requirements. And shop around — the best insurance company in your old state may not be the most competitive in your new one.
Don’t Let Coverage Lapse
The most important thing is to maintain continuous coverage throughout the moving process. A gap in insurance is one of the most costly mistakes you can make, as it will increase your rates and could result in penalties in both your old and new states.
