Timing Your Auto Insurance: The Best Approach For Policy Changes During A Move

Moving house can be a stressful time, and there are many things to consider, including updating your car insurance. Whether you're moving within your current state or to a new one, you'll need to update your car insurance policy. Here's a guide to help you through the process.

Update your insurance provider with your new address

Whether you're moving within your state or out of state, you'll need to update your insurance provider with your new address. This is because your address is one of the factors that determine your insurance premium. If you don't update your address, you could face penalties such as legal charges, policy cancellation, higher rates, and claims denial.

If you're moving within your state, you won't need to get a new policy. However, you may want to shop around to see if your current carrier still offers the best rates in your new area. If you're satisfied and decide not to switch companies, you'll just need to update your address with your current provider.

If you're moving out of state, you may need to get a new policy if your current provider doesn't sell insurance in the state you're moving to. Contact your insurance agent or company to verify whether they offer auto insurance in your new state. If they don't, you'll need to purchase a new policy before you can register your vehicle in your new state. Ask your insurance provider about their specific guidelines for updating your address. Some companies may require you to update your address within 30 days of moving.

To update your address, contact your insurance company and provide your new details. They will send you a new insurance card or update your information on their mobile app. You will also need to update your registration with the DMV.

Check if your insurance provider covers your new state

When moving to a new state, it is important to check whether your insurance provider covers your new location. This is because car insurance requirements vary by state, and you need to comply with your new state's insurance laws. Even if you are moving within your current state, you will still need to update your address with your insurance provider.

If your insurance provider does not cover your new state, you will need to switch providers. Ask your current provider if they offer coverage in your new state and for a quote. If they do not, you will need to shop for a new policy. Get quotes from multiple insurers and compare them to find the best rates. You may also want to look into discounts that you qualify for to keep costs down.

It is important to note that you will likely have a limited amount of time to update your insurance and registration after moving to a new state. Most states require you to switch your license, registration, and insurance within one to three months of establishing residency. Therefore, it is crucial to make these changes as soon as possible after moving.

Compare quotes from different providers

Comparing quotes from different providers is the best way to get cheaper car insurance. In fact, the average comparison shopper saves $60 per month on their car insurance by comparing quotes.

When comparing quotes, it is important to consider a few things. Firstly, determine your budget and the type of insurance you need. This will help you weed out overpriced insurance companies and focus on those with the lowest prices. The average U.S. driver pays $135 per month for car insurance, so that can be a good starting point.

Next, gather the relevant information, such as your social security number, driver's license number, vehicle identification number, and current coverage details. This will make the process of comparing quotes faster and easier.

It is also recommended to use an insurance comparison website, as this will allow you to compare prices and coverage options from different companies at the same time. However, be cautious as some sites sell your personal information. True comparison sites like Compare.com, Insurify, and Jerry provide real-time quotes without selling your data.

When researching companies with the best quotes, consider using third-party websites like J.D. Power and AM Best, which analyze insurance companies based on customer feedback and experiences.

Finally, select the best quote that meets your coverage needs and budget, and complete the application for your new policy. Remember to compare quotes again at renewal to ensure you're still getting the best deal.

Understand your company's cancellation terms

Understanding your car insurance company's cancellation terms is crucial before making any changes to your policy. Here are some essential things to know about your company's cancellation policy:

Cancellation Period

During the first 60 days of a new policy, your insurance company may cancel your coverage for various reasons, as this period is typically considered a "cooling-off" period. After the initial 60 days, or for renewal policies, your insurance company can only cancel your policy for specific reasons outlined in your contract. These reasons may include non-payment of premiums, fraud or misrepresentation, violations of policy terms, driving license suspension or revocation, medical conditions affecting your ability to drive safely, and so on.

Notification Requirements

Your insurance company is usually required to provide written notification of their intention to cancel your policy. This notice should include the reason(s) for cancellation and may need to state the amount due if non-payment is the issue. The timeframe for this advance notice varies, typically ranging from 10 to 45 days before the effective cancellation date, depending on the reason for cancellation and your state's regulations.

Refund Policies

If you have paid your premiums in advance and cancel your policy before the end of the term, you may be entitled to a refund of the remaining balance. This refund is often calculated on a pro-rata basis, meaning you will receive a refund proportional to the unused portion of your policy. However, some companies may employ a short-rate cancellation policy, where they retain a percentage (usually 10%) of the unearned premium as a cancellation fee.

Cancellation Fees

In addition to potentially forfeiting a portion of your refund as a cancellation fee, some insurance companies may charge a flat cancellation fee. These fees vary by company and state, and they are typically outlined in your policy documents. It's important to review your policy or consult with your insurance agent to understand any applicable cancellation fees.

Appeal Process

If you believe your insurance company has unfairly or incorrectly cancelled your policy, you have the right to appeal the cancellation. Contact your state's department of insurance to understand the specific appeal process and your rights as a consumer.

Register your car in your new state

Registering your car in your new state is a crucial step when relocating, and the process typically involves a visit to the DMV. Here's a detailed guide on how to register your car in your new state:

Determine the Timeline:

Most states offer a grace period for registering your vehicle after establishing residency. In California, for example, you have 20 days to register your vehicle with the DMV to avoid late fees. It's important to check the specific requirements and deadlines for your new state to ensure you don't incur any penalties.

Gather the Necessary Documents:

When registering your car, you'll need to provide various documents to the DMV. These typically include:

• A completed application form for title or registration.
• Your vehicle's out-of-state title and registration.
• A valid smog certificate (this may vary by state).
• Payment for registration fees.
• Proof of residency in the new state, such as a utility bill with your name and new address.

Visit the DMV:

Head to your local DMV office with all the required documents. You may be able to book an appointment in advance to expedite the process. At the DMV, you'll submit your documents, undergo a VIN inspection, and pay the necessary fees.

Complete the Registration:

After processing your application, the DMV will issue your new registration card, stickers, and license plates. You may need to return your old plates to your previous state's DMV. With these steps completed, your car will be officially registered in your new state.

Update Your Insurance and License:

In addition to registering your car, remember to update your car insurance policy and driver's license. You can usually update your insurance policy online, but transferring your license will likely require a visit to the DMV. Check with your insurance provider to see if they offer coverage in your new state, and shop around for the best rates.

Frequently asked questions