How Moving to a New State Affects Car Insurance

Moving to a different state? You may deal with changes to your car insurance, including your rates and company. Find out more here.
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Moving can be exciting, but it can also be hectic as you try to adapt to your new home. This is especially the case if you’re moving to another state. Lots of things will likely be different in your new state. The geography, weather, people, and the laws. Things that seemed set in stone in your previous state, like insurance, might not be the same when you move.

If you’re moving to a new state, you may have to deal with many changes to your car insurance. You might need to change insurance agents or find a new insurance provider, or both. Many insurers are regional and don’t do business in every state.

You may also have to update your limits and coverages to drive legally in your new state. Laws can vary between states. Some states, for instance, require more than just liability coverage. And many states have different bare minimum limit requirements, potentially causing you to pay a different amount for auto coverage.

This article will help you prepare for your move to a new state. This includes an explanation of all the changes you might face, as well as how you can handle them. We’ll also go over how your rates may change across state lines, even if you’re with the same company. Finally, we’ll answer some frequently asked questions about moving to a new state and how it affects your car insurance.

Should You Change Your Car Insurance Provider?

Should you switch auto insurance companies when you move? The answer to this question depends on your situation. You may find that your current insurer doesn’t operate in your new state. Many insurance providers are regional. This means they may not be able to cover you once you’ve moved. If this is the case, you’ll have to find a new insurance company. 

Even if your insurance company does business in your new state, your insurance agent probably doesn’t. You should reach out to an agent for advice regarding your move. They’ll be more than happy to guide you through the process. Agents are very knowledgeable and should be your go-to resource for all your insurance questions. 

Transferring Your Car Insurance

If you don’t use a regional insurer, your likely course of action is to take your existing policy with you. The first thing you should do if you’re considering transferring your insurance is to talk to your agent. They’ll be able to give you more details about the process and what types of adjustments you’ll have to make.

Because there are varying requirements across states, your coverage might look different in your new state than in your previous one. For instance, you could move from a fault state to a no-fault state. Or you might move to a state with different minimum coverage limits. Due to this, you and your provider will have to draw up a new policy after you move.

Minimum liability insurance is a major example of differences between states. Each state sets unique requirements for liability coverage. As an example, below are the differences between California and Texas in terms of the minimum required liability insurance:

California (15/30/5):

  • $15,000 per person
  • $30,000 per accident
  • $5,000 for property damage

Texas (30/60/25):

  • $30,000 per person
  • $60,000 per accident
  • $25,000 for property damage

Let’s say you moved from California to Texas. You’d see much different coverage requirements than you did in California. Texas requires its drivers to carry much more auto insurance. This could lead to increased car insurance rates.

How to Switch Car Insurance Companies

Choosing a new provider can look daunting for many reasons. You might have been with your current company for a long time and jumping in with a new one just doesn’t feel right. Or, you don’t know where to get started in a new state with a likely new market for insurers.

A good starting point in switching carriers is to compare prices among all the car insurance companies in the state you’re moving to. This will empower you to dive right in and decide which company is the best suited for your needs.

Along with comparing quotes, it’d be helpful to look up reviews on companies you’re considering. You can also ask around and see if anybody from your new state (e.g., co-workers, friends, new neighbors, etc.) knows about the providers you’re looking into. Choosing a reputable company will allow you to set yourself up for success after you move.

Once you’ve found a company that can meet your insurance needs in terms of price and coverage, you’re ready to contact them and complete the changeover. You should also make sure you tie up any loose ends in your old state, such as canceling your old insurance policy.

How Will Moving Affect Your Car Insurance Rates?

Your car insurance rates will more than likely change when you move to a different state. Depending on where you move, your insurance premium could go up, down, or even stay relatively the same.

The reason your premium may change is that rates are tied to your zip code. Some areas may have higher accident or crime rates than others, which often leads to more people filing claims. This causes insurers to raise rates to meet the increased costs.

If you haven’t chosen exactly where to move to in your new state, you may want to find an area with less crime and traffic. It might also be a good strategy to review average car insurance rates before you decide where to buy your new home.

Car Insurance and Registration Over State Lines

A common question involves registration and auto insurance. Can you register a vehicle in one state and get it insured in another? Most states require proof of insurance before you can register your car. And many insurers require you to insure your car in the state it’s located. You’re better off finding an insurance company that does business in your new state and then registering your car.

You must have two separate policies if you move to a new state but still own a home and a car in another state. One policy for your new state and another for wherever else you have property.

Bottom Line

Moving to another state can bring up some challenges in the way of auto insurance. First, you’ll have to make sure your policy can come with you. If it can’t, you may need to shop around for a new car insurance provider. In most cases, you may also have to face the reality of your rates changing, for better or worse.

Frequently Asked Questions

Q: I live on the border of two states, and I work in another state. Am I covered?

A: Your car insurance will usually cover you if you live in one state but drive to work in another. Be sure to check with your insurance company or agent for specific information regarding your state.

Q: Can I stay on my parents’ car insurance if I move to a different state?

A: It depends on certain personal factors. If you and your parents move to a new state, they’ll have to re-add you to their new auto insurance policy.

Q: What are regional car insurance providers?

A: Regional providers are auto insurance companies that only operate in certain areas or regions. It’s highly unlikely that these insurers will be able to come with you if you move to a new state.

Q: How do I switch car insurance agents?

A: You should contact your current insurance company if you want to switch auto insurance agents. They’ll give you all the info you need about the process of finding a new agent in your new state.

Q: What happens if I don’t update my car’s registration in my new state?

A: If you don’t update your car’s registration in the time that the state requires, you could end up getting a ticket if you’re caught driving without it.

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