Moving to a new state is an exciting adventure, but it’s easy to overlook one critical detail: your car insurance. You may be wondering if you have to change your car insurance when moving to a new state. In short, yes. Since rules and regulations for car insurance vary greatly from one state to another, there are a few important considerations and a clear process to follow. You don’t want a simple oversight to create a lapse in coverage or a fine. We’ll cover what you need to know, from understanding your new state’s laws to giving you tips on how to save on car insurance.
Moving to a New State Car Insurance Quick Checklist:
- Notify your current insurer of your move date.
- Research your new state’s auto insurance laws.
- Get quotes from multiple insurance companies.
- Finalize your new policy before your move date.
- Register your vehicle in your new state within the required time frame.
Can I Keep the Same Car Insurance Policy if I Move to a New State?
You will not be able to keep the same car insurance policy when you move to a new state. However, if your current insurer offers coverage in your new state, you can typically transition to a new policy with the same company. In this scenario, your insurer will create a new policy that complies with your new state’s laws and may adjust your rate based on factors such as new zip code data, local traffic, and accident statistics.
If your current insurer does not operate in your new state, you’ll need to change your a new car insurance policy with a new insurer.
Why Do I Need to Change My Car Insurance Policy When I Move?
The primary reason you need to change your car insurance when you move is that car insurance laws and requirements vary greatly from state to state. These laws dictate the minimum amount of coverage you must carry and even the type of insurance system the state uses. What’s legally required in one state may be completely inadequate—or even illegal—in another.
For example, states like Texas operate under an “at-fault” system. This means the driver who causes an accident is responsible for paying for the other party’s damages and injuries. In Texas, motorists are required to carry a specific amount of liability coverage to cover these costs (30/60/25).
On the other hand, states like Michigan use a “no-fault” system. This means that after an accident, each driver’s insurance pays for their own medical expenses and lost wages, regardless of who was at fault. Because of this, Michigan drivers are required to carry Personal Injury Protection (PIP), which specifically covers these expenses. This fundamental difference in how claims are handled makes a policy from one state incompatible with the laws of another.
A Step-by-Step Guide to Updating Your Car Insurance
To change your car insurance in stress-free manner, you must give yourself plenty of time and preparation. Follow these steps to make sure your car insurance is in place when you need it.
Step 1: Start Early
The moment you set your moving date and have a new address, contact your current insurance provider. If they offer coverage in your new state, you won’t have to automatically switch companies. However, if you do need to find a new provider, starting early gives you plenty of time to compare rates and find the best deal.
Step 2: Learn Your New State’s Car Insurance Requirements
Since insurance laws vary by state, it’s smart to familiarize yourself with your new state’s requirements. Having this knowledge will make it easier to compare coverage options when searching for a new insurer.
Depending on the state, you may be required to carry additional coverage such as Personal Injury Protection (PIP), Medical Payments, or Underinsured/Uninsured Motorist coverage.
Step 3: Compare Quotes from Insurance Companies Online
Even if your current provider offers business in your new state, it’s still smart to shop around and compare insurance quotes from multiple companies. Doing so could help you save if your new zip code results in a significant change in rates. When comparing quotes, use online tools to help you review multiple policies at once.
Pro tip: Compare quotes from at least three different companies to ensure you’re getting the best rate possible.
Step 4: Purchase Your New Policy
Once you’ve found a quote that suits your needs and budget, continue by purchasing your new policy. It is crucial that you set your old policy to end after your new policy begins. A single day without coverage can lead to a lapse, which could affect your insurance rates in the future.
Step 5: Cancel Your Old Policy and Register Your Vehicle
You should only cancel your old policy after your new policy is active. Once your new policy is active, you can then update your vehicle registration and your driver’s license at your new state’s DMV. Most states do have a grace period (30 to 60 days) to complete this, but it’s important that you don’t delay.
Don’t Forget About Your Other Policies
As you prepare to change your car insurance, take a moment to consider your other insurance needs as well. If you have a motorcycle, RV, or boat, these policies also have state-specific requirements that you will need to adhere to.
This is also a perfect opportunity to explore the benefits of bundling your policies. Most insurance companies offer multi-policy discounts when you purchase more than one type of insurance from them, such as your auto and homeowners, renters, or even motorcycle policies. Not only does this simplify your life by keeping all your policies in one place, but it can also lead to a reduction of your annual insurance costs.
AIS is Here to Help
At AIS, we’re experts at navigating the insurance market in all 50 states to find you a policy that best suits your needs and budget no matter where you live. Our insurance specialists can help you find and secure reliable coverage when you have a big move and know the right questions to ask to find you the best saving opportunities. Whether you’re looking for a new provider or just doing research, our team is available to help you online or over the phone at (888) 772-4247.
The information in this article is obtained from various sources and offered for educational purposes only. Furthermore, it should not replace the advice of a qualified professional. The definitions, terms, and coverage in a given policy may be different than those suggested here. No warranty or appropriateness for a specific purpose is expressed or implied.
