CarInsurance.com Insights
- After moving to a new state, remember to update your car insurance. As a resident, your policy must meet your new state’s minimum coverage limits to help you avoid fines or penalties.
- Car insurance rates change from state to state because each state has its own risk factors. Even if your current insurer operates in your new state, it’s still smart to compare rates.
- When you compare quotes, make sure each one has the same liability limits, deductibles and optional coverages. If you compare different coverage levels, you might end up with too little protection or paying too much.
- To avoid any gaps in your coverage, make sure your new policy is active before you cancel your old one. Get written confirmation of both start and end dates so you stay insured the whole time.
Switch your car insurance immediately after establishing residency in a new state. Most states require you to update your insurance, vehicle registration and driver’s license within 30 to 90 days of moving. If you miss these deadlines, you may face fines, license suspension or registration penalties.
Moving to a new state brings many changes, and your car insurance is no exception. While switching states doesn’t automatically mean switching insurers, it does require updating your policy to comply with the laws in your new state.
If your current insurance company does business in your new state, transferring your policy is usually simple. You’ll just need to call them and update your policy. Keep in mind that your rate may change significantly depending on your new ZIP code, state rules, and local claim trends.
Sohpie’s Quick Tip
Set a calendar reminder for 15 days after your move to start the insurance switch process. It’s easier to be early than face penalties.
What are the steps to switch car insurance to a new state?
Switching car insurance involves five key steps:
- Research your new state’s minimum coverage requirements: Visit your new state’s DMV website to review liability limits, PIP requirements and uninsured motorist coverage rules. Minimum coverage varies by state; for instance, California requires $30,000/$60,000 liability coverage and Florida mandates $10,000 in PIP coverage.
- Contact your current insurer about transferring or canceling: Contact your insurer at least two to three weeks before you move. If they cover your new state, ask how to transfer your policy and update your address. If not, find out how to cancel and whether you can get a refund for any unused premiums.
- Compare quotes from three to five insurers in your new state: Even if your current company covers your new location, comparing rates and shopping around is smart. Rates vary by state due to different risk factors, so shopping around can help you find better coverage at a lower cost.
- Activate your new policy before canceling the old one: To avoid any gap in coverage, make sure your new policy starts 1 or 2 days before your old one ends. Ask for written confirmation of both your new policy’s start date and your old policy’s cancellation date.
- Update your vehicle registration and driver’s license: Most states require you to update your vehicle registration and driver’s license within 30 to 90 days of moving.
You can use CarInsurance.com’s “Will my insurance go up if I move?” calculator to see your estimated rates based on your new location.
Your old state may require you to return your old plates. Check with the DMV in your old state to learn the complete process and avoid penalties.
How soon should I change my car insurance when moving to another state?
You should update your car insurance as soon as you move to another state, depending on the state’s requirements. Once you establish residency, you must register your car and get a new driver’s license. That means you’ll need to switch your insurance to a policy that meets your new state’s minimum coverage requirements.
Check your new state’s Department of Motor Vehicles (DMV) website for the car insurance and registration requirements. Most states give you 30 to 90 days to switch your insurance, update your driver’s license and register your vehicle. The state may fine you or issue other penalties if you don’t meet the deadline.
Can you keep your current insurance company when moving?
You can keep your insurance company if it does business in your new state and offers coverage there. You’ll need to update your policy to meet your new state’s minimum requirements, and your rates will probably change based on local risk factors.
Your rates will change, even if you stay with the same insurer
Even if you stick with your current company, your premium will change to match your new state’s risk profile. Things like claim frequency, weather and state laws all affect your insurance cost, no matter how long you’ve been with your insurer.
Sohpie’s Quick Tip
Even if you love your current insurer, compare at least three quotes in your new state because loyalty doesn’t guarantee the best rate after a move.
Speak with a friendly agent and get your quote in minutes!
What happens if you don’t update your insurance after moving?
If you don’t update your car insurance after moving to a new state, you could face penalties such as fines, license suspension or even registration issues. Each state has its own insurance requirements, and driving with an out-of-state policy may be considered non-compliant.
Your insurer could also deny claims or cancel your policy if they find out you’ve moved and didn’t inform them. That’s why it’s essential to keep your current insurer in the loop and get a new car insurance policy when you move to another state to comply with the state’s laws.
Summing it up
Moving to a new state comes with a long to-do list, and car insurance is one item you can’t afford to overlook. Because insurance laws, coverage minimums and pricing vary by state, your current policy may no longer meet legal requirements once you relocate.
Whether you’re crossing state lines for work or a fresh start, understanding how to transition your car insurance smoothly can help you stay compliant, avoid coverage gaps and potentially save money.
Frequently Asked Questions: Switching car insurance between states
Do you need new car insurance if you move temporarily?
If you are moving for less than six months for work or school, you probably do not need to change your insurance. However, you should let your insurer know your temporary address. Review your policy and check the rules in the new state. Many students keep their home-state insurance if their permanent address stays the same.
Will your insurance rates go up or down after moving?
Your insurance rates can go up or down based on the risk factors in your new state. If you move from a low-cost state like Maine or Iowa to a high-cost state like Michigan or Louisiana, your premiums will increase. On the other hand, moving to a cheaper state usually means your rates will drop.
Can you switch insurance before you physically move?
You can buy insurance in your new state before you actually move. Just set the policy to start on your moving day so you don’t have a coverage gap. Most insurers let you do this in advance, so you have time to compare options and finish the paperwork before you relocate.
What documents do you need to switch car insurance?
You’ll need your current policy information, driver’s license, vehicle identification number (VIN), vehicle registration and proof of your new address. If you’re going to buy insurance through your current insurance company in the new state, they’ll have most of the information on file.
Do you get a refund when canceling car insurance?
If you cancel your policy before it ends, most insurers will give you a prorated refund for the unused premium. Ask for written confirmation of your cancellation date and the refund amount. You should receive your refund within 2 to 4 weeks, either by check or direct deposit to your original payment method.
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