Table of Contents
- Do You Need to Change Car Insurance When Moving States?
- When To Update Your Car Insurance After Moving
- How To Change Car Insurance When Moving to a New State
- Will Your Car Insurance Rate Change When You Move States?
- What Happens if You Don’t Update Your Car Insurance After Moving?
- Registering Your Vehicle and Updating Your License in a New State
- FAQ
Moving to a new state comes with a long to-do list. One task that’s easy to overlook is your car insurance. While you may not always have to switch insurers, you’ll need to make sure your coverage meets your new state’s requirements and notify your insurance company about your change of address.
Understanding when and if you should change your policy can help you avoid coverage gaps, denied claims, and unnecessary expenses. Read on to find out when to change your car insurance when you’re moving state to state.
Key Points
• Moving to a new state requires notifying your insurance company about your change of address since rates depend partly on location, and failing to report a move may be viewed as misrepresentation.
• Your current policy may remain valid in the new state if it meets local requirements, allowing you to keep your insurer.
• New residents typically have between 10 and 90 days after establishing residency to update their car insurance.
• Since they’re place-specific, car insurance rates in a new state may be higher or lower than your old ones, with urban areas generally costing more due to higher traffic density and crime rates.
• Comparing quotes from at least three providers can help you find a suitable policy at a reasonable price, and the old policy should only be canceled once the new one is active.
• Failing to update car insurance in a new state after moving can lead to denied claims, policy cancellation, coverage gaps, fines, and difficulty registering your vehicle.
Do You Need to Change Car Insurance When Moving States?
You don’t always need to change your auto insurance when moving to another state, but it can be a good idea to make the switch in some situations.
You must let your insurance provider know about your move since the insurance company may need to adjust your policy depending on where you move. Your car insurance rates are based in part on where you live, and failing to report a change of address can be seen as a misrepresentation of your circumstances.
If your car insurance doesn’t cover you in your new locale, it’s best to find a policy that does before you move. You can check your new state’s Department of Motor Vehicles website to find out what types of insurance are required. If you don’t manage to make the switch before you move, you typically have anywhere from 10 to 90 days after you take up residency to put your policies in order. Just note that Massachusetts, Michigan, and New Mexico currently have no grace period — and that the rules can change.
If your current insurance policy covers you in your new state of residence, you don’t have to switch insurers. This can be a good thing, helping save you time and allowing you to maintain things like loyalty discounts. It is important to remember, however, that a location change can change how much your insurance costs.
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When To Update Your Car Insurance After Moving
If you find that you want, or need, to switch your car insurance, there are some important points to keep in mind.
Before You Move
When you first come to live in a new state, it’s important to arrive with operating insurance. If you know you’ll have to change your insurance policy, it may make sense to do so before you move. That way, you’ll have a policy that matches your new state’s requirements, you’ll avoid coverage gaps, and you won’t have to delay registering your car.
Within Your Grace Period
When you move to a new state, you usually have a grace period of somewhere between 10 and 90 days in which to get a new driver’s license and register your vehicle. The end of your new state’s grace period is the absolute latest you’ll be able to put off getting new insurance if you need it. That’s because to register, you’ll need to present proof of insurance that meets state requirements.
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How To Change Car Insurance When Moving to a New State
To change your car insurance when you’re moving to a new state, first check what your new state’s insurance requirements are. For instance, states can set their own rules about the minimum liability coverage you’ll need, and some states might require extra coverage. So as you’re shopping for policies, make sure to consider only the ones that match these requirements.
It’s generally a smart idea to get quotes from at least three different insurance providers to help ensure that you find the policy you need at a reasonable price. Once you’ve made a decision, contact your chosen insurance company, provide relevant information and documentation, and you’ll likely be asked to pay for one month’s premium.
With a new policy in place, you can now cancel your old policy. Don’t cancel your old policy any sooner as that can leave you unprotected, and you can face costly fines if you’re caught driving without insurance.
Will Your Car Insurance Rate Change When You Move States?
Your car insurance rates are place-specific, so they may go up or down depending on where you’re moving. For instance, if you’re relocating to a big city from the country, you might see your rates rise because big cities tend to be denser, contain more traffic, and have higher crime rates, which increase the risk of theft. Rural areas, on the other hand, usually have fewer cars on the road and present fewer risks.
Some states may have higher or lower liability coverage requirements. And some, like Florida and New York, require you to have different types of car insurance coverage, such as personal injury protection (PIP) that pays for medical bills if you’re in a crash.
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What Happens if You Don’t Update Your Car Insurance After Moving?
If you don’t update your car insurance appropriately after moving, you may encounter two main issues.
First, if you don’t tell your insurance company where you’re moving, you may risk having claims denied or your policy canceled. If your old insurance doesn’t meet your new state’s requirements, you may also risk gaps in coverage.
Also, as mentioned above, you have a relatively short window in which you must update your vehicle registration and get a new driver’s license. Failing to do so could result in fines. Not having the correct insurance can hinder the process of registering your vehicle.
Registering Your Vehicle and Updating Your License in a New State
When you move to a new state, you can update your registration and driver’s license through the state Department of Motor Vehicles (DMV).
To get a new license, you need to go to the DMV, fill out an application, and provide required documents, such as your old license, proof of identity, proof of Social Security number, and proof of residency. You’ll also need to have your photo taken, provide a thumbprint, and pass an eye exam.
You can register your vehicle at the DMV as well. You’ll need your old registration, your vehicle title, proof of insurance, and your vehicle identification number (VIN).
The Takeaway
Changing states doesn’t always mean changing car insurance companies, but it does mean reviewing your coverage. Before you move, notify your insurer of your new address and confirm that your current policy will remain valid in your new state — or get a new policy.
If you need a new policy, compare quotes and make the switch before canceling your old coverage to avoid a lapse in insurance. Taking these steps can help ensure you stay protected, comply with state laws, and avoid costly penalties during your move.
When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.
SoFi brings you real rates, with no bait and switch.
FAQ
How long do you have to change your car insurance after moving states?
You don’t have to change your car insurance when moving states if it meets your new state’s insurance requirements. If it doesn’t, you need to change your insurance before you register your vehicle. Depending on which state you’re moving to, you may have a window of 10 to 90 days to do so.
Can you keep your old car insurance after moving to a new state?
You may be able to keep your old car insurance after moving to a new state if that insurance meets the new state’s requirements. You can find out what those requirements are by visiting your new state’s DMV website.
Does moving to a new state always increase your car insurance rate?
When you’re moving to a new state, your car insurance rate does not necessarily increase. In some cases, you may be required to carry additional coverage, while in others you may be able to drop it. What’s more, the environment you’re moving to can have a big impact on insurance prices. If you’re moving from a large city to a rural town, for instance, you could see your insurance rates drop.
What documents do you need to update car insurance after a move?
When you’re moving to a new state, the car insurance update documents you need will depend on how you’re handling your insurance. If you’re keeping your old insurance, you’ll likely just need to update your insurance company with your new address, effective move-in date, and possibly proof of residence. If you’re changing insurance companies, you’ll need to provide additional information, including personal identification, vehicle details, a valid driver’s license, and your VIN.
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