How to Manage Car Insurance While Moving Out of State
Moving house usually comes with a long list of to-do’s attached to it.
Between the house hunting and search for the ideal moving company, gathering packing supplies and doing the actual packing, there is a host of other items in between that need crossing off the list before the big day.
Transferring utilities to the new home, for example. Or changing schools for the kids if you have family. Car insurance is something else we need to sort out, particularly when relocating to a different state.
So, how exactly do you go about managing your auto insurance policy when moving?
If you’re done with nailing down a house, finding some good long distance movers New York – or whatever other part of the country you’re relocating from – and managed to secure packing materials, you’ll be pleased to know that the hard work is already behind you.
That’s because changing your car insurance during a move is one of the easiest assignments on your to-do list.
Here are the most important questions answered.
Do I have to change car insurance when moving interstate?
You may or you may not. This is entirely dependent on the coverage requirements of the state you’re moving to, which varies from one state to the next.
If the state you’re relocating to requires drivers to have a high level of coverage, you may have to think about changing your policy or car insurance company to reflect those requirements.
Similarly, if the coverage requirements of your destination state are low, you can opt to lower your premium. However, keep in mind that there is an increased risk that comes with lowering your premium.
Weigh the pros and cons associated with each policy option then make your decision based on that – depending of course, on what the new state requires.
So, how will I know the destination state requirements?
Once it’s clear that you’re relocating to a different state, talk to your car insurance company notifying them of your impending move.
Enquire from the agent on whether or not their company operates in the destination state AND whether there are any coverage changes that will be required on your part.
As well, let them know if you plan to remove or add drivers in the auto insurance policy.
Plan to do this well in advance of the move so you can plan for any changes as you don’t want to have any gaps in coverage.
What about when moving to a “no-fault” state?
More commonly known as personal injury protection, no-fault insurance is a type of auto insurance that covers any income losses, medical bills, or funeral expenses arising from a car accident irrespective of which driver (you or the other involved driver) was at fault.
It’s not every state that requires drivers to carry no-fault insurance, but a good number do. You can find the full list on Nationwide.
So, if you’re moving from a non no-fault state to a no-fault state, chances are you will need to change your coverage. This is also something you can clarify from your insurance agent.
Why does my auto insurance premium potentially have to change?
There are a number of factors that auto insurance companies evaluate when determining your premium that could potentially impact on your driving abilities or raise/lower your probability of filing a claim.
Factors that could affect your premium include your state’s risk of natural disasters, crime rates, and traffic patterns.
For example, if you’re moving from a state of low risk for hurricanes to one with a high likelihood of experiencing hurricanes, you may need to up your car insurance to cater for that eventuality.
Same case with moving to a city with a higher crime rate. Or an area that will add more hours to your commute time (aka increased mileage).
What steps do I need to take after purchasing a new insurance policy?
Confirm the start dates of your new auto insurance policy with your insurance agent.
If you’ll be necessitated to switch providers during the move, inform your current insurance company about it and confirm an end date with them.
If you’ll be sticking with the same provider, again, talk to them and confirm the old policy’s end date. Don’t forget to ask for your new insurance cards.
In closing, we would advise you to get quotes from at least three different insurance providers (a simple phone call will do) to compare what each offers in their package.
Lastly, don’t forget to check whether you need to register your vehicle again in the new state. Chances are you will.