When you move, you've got a lot to think about, and your car insurance coverage might not even cross your mind. However, every auto insurance quote is directly affected by a driver's address. This is because the actuarial tables used by car insurance companies chart how often accidents and auto theft occur in certain zip codes. If you're moving out of state, your insurance premiums will change even more due to a variety of factors. Here's a look at a few things that all drivers should know about their car insurance when moving out of state.
First and most importantly, insurance law is different from one state to the next. Even if the minimum required coverage levels are the same (and usually, they're not) the guidelines and laws that govern insurance companies won't be. For example, some states don't allow insurance companies to offer customer loyalty discounts, and penalties for violations are often very different. The entire basis of the law might even be different. If you live in a no-fault state and move to a traditional tort state or vice-versa, you'll have to get completely new insurance, and you'll want to read your state's requirements for car insurance coverage carefully. Your insurance agent will have more information about the differences in law from one state to the next.
Some insurance companies are very local, and don't even offer car insurance coverage for drivers in other states. If this is the case, you'll have to look online for a completely new policy before you move. Make sure that you're covered in your new state of residence before you begin driving there. You'll have to be in contact with your old insurance company and your new insurer. Generally, they'll set the old policy to expire right after the new one starts, thus preventing you from lapsing in coverage. Remember, if you're leasing a vehicle, you'll have to inform your lender of the change in insurance. In many cases, your car insurance agent can take care of this aspect of the switch for you.
Don't neglect your insurance responsibilities when moving to a new state. It's very important to have a functional and legal policy, and it's equally important that you understand that policy. As with any change in insurance, it can be helpful to look around for the best rates. Figure out what coverage you'll need, and get several car insurance quotes online. Switching insurance is fairly easy, and when you're done, you'll have one less thing to worry about while getting acclimated to your new home.
