Understanding Auto Insurance When Moving States: A Comprehensive Guide

Moving to a new state can be an exciting but stressful time, and there are a lot of things to consider when it comes to auto insurance. It's important to update your auto insurance company when you move to a new state, as your insurance rates may change based on your new location. While you don't have to change your insurance provider, it often makes sense to switch, as insurance agents are typically licensed to operate in only one state, and different states have different laws and requirements for insurance coverage.

Check if your current provider covers your new state

When moving to a new state, it is important to check if your current auto insurance provider covers your new state. Auto insurance requirements vary by state, and insurance agents are typically licensed only in a single state. Therefore, you should contact your insurance agent before moving to see if your current provider can cover you in your new state. If your current provider does not cover your new state, you will need to purchase a new insurance policy.

To check if your current provider covers your new state, you can start by calling your insurance agent. They will be able to let you know if they offer insurance in your new state and can provide information about any changes in coverage costs associated with the relocation. If you need to work with a new agent in your new state, your current agent should be able to refer you to the right person.

It is important to note that even if your current provider does cover your new state, you may need to update your policy to meet the new state's requirements. Most states require a minimum amount of liability insurance, and some might even require other specific types of coverages, such as bodily injury coverage, liability coverage for property damage, underinsured/uninsured motorist coverage, and personal injury protection. Work with your agent to ensure your new policy meets the coverages and limits that you need. These changes might cause your premium to change.

Additionally, remember to verify the timeline for switching your car insurance with your current provider. You typically have 30 to 90 days to switch your car insurance after moving to a new state, but it is important to confirm the exact deadline. While you should plan ahead, do not cancel your current policy until your move is complete and you have a new policy in place.

Understand the insurance requirements of your new state

When moving states, it's important to understand the insurance requirements of your new state. Each state has different requirements, and you'll want to know these to understand if your insurance premiums could go up or down. Here are some of the essential insurance standards to know:

No-Fault Insurance

Twelve states and Puerto Rico have no-fault insurance laws. These systems require insurance companies to compensate their policyholders for the cost of injuries, regardless of who was at fault. With no-fault insurance, policies typically include personal injury protection (PIP). Each state sets different PIP minimums and benefits, including compensation for medical expenses, lost wages, or other out-of-pocket expenses. There are variations within the no-fault system, so it's best to review your state's requirements. If you move from a fault-based state to a no-fault state, be prepared to pay a higher premium.

Bodily Injury Liability

This covers costs from injuries or deaths related to an accident. You'll see two numbers associated with these minimums: coverage for one person and coverage for all persons injured. For example, 25/50 means there's a limit of $25,000 in coverage for an individual and $50,000 for everyone involved in an accident. These are the minimum limits set by each state. You'll likely want to cover more than $50,000 in injury accident coverage.

Property Damage Liability

This coverage reimburses others for the damage you cause in an accident. This includes damage to another vehicle or structures like a building or fence. State minimums range from $5,000 to $25,000. You will likely want to have coverage beyond these state minimums.

Uninsured Motorist Coverage

Twenty states require additional coverage for uninsured motorists. This coverage will reimburse you when an accident is caused by an uninsured motorist or in a hit-and-run accident. Options are also available for underinsured motorist coverage, which covers expenses if another driver does not have enough insurance to pay for the entire cost of an accident.

Other Requirements

Your new state may also require more or less minimum coverage than your old state did. For example, Arizona requires only $15,000 of liability coverage for bodily injury, while drivers in Alaska must carry $50,000 in bodily injury coverage. Your new state may also require additional forms of coverage, such as:

• Bodily injury coverage by accident and by person
• Liability coverage for property damage
• Underinsured/uninsured motorist coverage
• Personal injury protection

Shop around for a new policy

When moving to a new state, you will need to make sure your car insurance policy is written with the coverages and limits that you need. Car insurance requirements vary from state to state, so you will need to shop around for a new policy. Here are some tips to help you get started:

• Start by calling your current insurance company to see if they offer insurance in your new state. They can also provide information about any changes in coverage costs associated with the relocation. If you need to work with a new agent in your new state, your current agent may be able to refer you to someone.
• Review the Department of Motor Vehicles (DMV) website for your new state to find out the requirements for registration and auto insurance. You will usually have at least 30 to 90 days to get your new documents in place, but it's important to verify the exact timeline with your current insurance provider.
• If your current insurance company doesn't offer coverage in your new state, you'll need to contact other companies and get quotes for a new policy. Most industry experts recommend getting quotes from at least three different insurance companies before deciding to buy coverage. You can also get recommendations from friends and family who live in your new state or from your employer if you will be working for a new company after your move.
• When comparing policies, consider factors such as the cost of the policy, the coverage limits, and any discounts that may be available. Remember that the cost of your policy may change depending on your new geographic area, your new commute to work, and other factors.
• Once you've made your decision, get in touch with the insurance company and complete the required documentation. Make sure you get the start date of your new policy in writing.
• Don't forget to cancel your old policy once your new policy is in place. Ensure that the end date of your old policy aligns with the effective date of your new policy.

Register your car in the new state

Registering your car in your new state is a crucial step in the process of relocating to a different state. Here's a detailed guide to help you through it:

Understand the Timeline:

Before you begin the registration process, it's important to be mindful of the deadlines. Most states offer a grace period, typically ranging from 30 to 90 days, to register your vehicle in your new state. It's essential to verify the specific timeframe with your new state's Department of Motor Vehicles (DMV) website, as failing to meet this deadline may result in fines.

Gather the Necessary Documents:

When registering your car, you'll need to provide various documents. These typically include your driver's license, proof of insurance, and your vehicle's title. Additionally, be prepared to show proof of your new residency and identity. Accepted documents to prove residency and identity vary by state but often include passports, military cards, refugee travel documents, welfare or Medicaid cards, and utility bills with your new address.

Visit the DMV:

With your documents in hand, it's time to head to your new state's DMV office. You can locate the nearest DMV office by searching online or asking for directions. Once there, you'll fill out vehicle registration and title application forms. Remember to bring your old license plate if you're required to return it to the DMV.

Pay the Registration Fees:

Registering your vehicle in a new state typically incurs fees. These fees can vary depending on the state but generally range from $25 to $60. Be prepared to pay these fees when submitting your registration application.

Receive Your New License Plate:

After completing the registration process and paying the fees, you'll be issued a new license plate for your vehicle. Make sure to properly display this new license plate on your car, following the regulations in your new state.

Mail Your Old License Plate:

In some cases, you may need to return your old license plate to the DMV in your previous state. Check with both your new and former state's DMV websites or offices to clarify their specific requirements.

Remember, the process of registering your car in a new state is an essential step in ensuring you remain legally compliant when driving in your new home. Take your time to understand the specific requirements and deadlines of your new state, and don't hesitate to reach out to the DMV for guidance if needed.

Apply for a new license

States require that residents update their driver's licenses when they become residents. Depending on the state, this may be required immediately, or you may be granted up to a few months of grace period after moving there. The specifics vary between states, but each has its own legal requirements regarding the allotted time frame for updating your license.

The first step in figuring out how and where to update your driver's license is to identify the government entity that handles driver's licenses in your state. Oftentimes, it's called the Department of Motor Vehicles (DMV) or the Registry of Motor Vehicles. Their website will have a complete list of the documentation required to update your driver's license, as well as the legally mandated timeframe.

• Identify the appropriate department and the most convenient location. The state will determine which department to use, but you can look at their individual locations to see which is closest to your new home.
• Determine the necessary documentation. Contact the department or check their website to see what information and documentation they require when updating your driver's license. Many states have a checklist that drivers can use to ensure they have all the necessary documents before arriving for their appointment.
• Make an appointment. You can usually schedule an appointment online or by phone. Depending on the location and time, walk-ins may also be accepted, although you'll want to verify this beforehand. Bring everything the website or representative said you would need and aim to show up with extra time, as DMV lines can be unpredictable.
• Pay the necessary fees. After providing the necessary paperwork on-site, you may be asked to fill out some additional paperwork before paying the associated fee to update your driver's license.
• Receive your new license. Once the paperwork and fees are taken care of, the DMV (or equivalent) will likely have you take a new photo (unless you're moving within state lines) before printing out your new license. This should be the last step to complete your license-updating process.

Frequently asked questions