When To Inform Your Auto Insurer About Your Move

Moving is a significant life event, and it's essential to update your car insurance policy as soon as possible. Even if you're only moving a few streets away, your insurance provider needs to know, as your new location may impact your premium. This is because insurers determine your rate based on the risks associated with your area, such as crime rates and traffic congestion. Failure to update your policy could result in a fine or a refusal to pay out on a claim. If you're moving out of state, you'll need a new insurance policy, as each state has different coverage requirements and regulations.

How to update your address with your insurance company

Moving is a milestone event, and it comes with many tasks and challenges. One of the most important things to do when you move, even if it's just a few streets away, is to update your car insurance policy. This is because location is a major factor in insurance rates, and insurance companies use ZIP codes to assess risk. As such, it is a requirement of your insurance contract to update the insurance company if you move.

• Contact your current insurance company: Let your insurance agent or company know about your move as soon as possible. Ask them if they offer auto insurance in your new state. If they don't, you will need to find a new insurer. If you are staying in the same state, you may not need to switch insurers, but you should still notify them of your change of address.
• Learn about the insurance requirements in your new state: Insurance laws and requirements vary by state, so your new policy may include additional coverages that you didn't have before. For example, some states require underinsured/uninsured motorist coverage, personal injury protection, or medical payments coverage.
• Shop around and compare quotes: Even if your current insurance company can provide coverage in your new state, it doesn't guarantee they will offer the best rates. Get quotes from multiple insurers and compare policies side-by-side to find the best value for your needs.
• Purchase a new insurance policy: After comparing prices and coverages, choose your new insurance company and purchase a policy. Make sure to get the start date of your new policy in writing to avoid any lapses or overlaps in coverage.
• Cancel your old policy: Once your new policy is in effect, contact your previous insurance company and cancel your old policy. If you are staying with the same insurer, they should automatically cancel your old policy when the new one takes effect. If you have prepaid your premium, your previous insurer may refund you for the unused portion.
• Update your vehicle registration and driver's license: Visit the DMV to update your vehicle registration and obtain a new license plate. You will need to provide proof of your new address, as well as proof of insurance in your new state. Some states may also require you to update your driver's license, which may involve taking a written exam or a vision test.

Remember, it is important to notify your insurance company of your move as soon as possible to ensure you have the right coverage and to avoid any issues with your policy.

When to notify your insurance company about your move

As soon as you know your new address and move date, you should contact your car insurance company. Even if you are on a tight deadline, this is the first step—they can give you a quote and let you know about any rate adjustments.

If you are moving out of state, you will need to get a new insurance policy, as car insurance requirements vary from state to state. Your insurance company will cancel your old policy because each state has different coverage requirements and regulations.

If you are moving within the same state, you don't need to get a new policy. However, you must still notify your car insurer of your new address, as your rate may change, and you will need to ensure your policy remains active and updated.

In most states, you will have between one and three months to update your insurance, driver's license, and registration. You could face a fine for failing to make the switch within the deadline.

How to switch your car insurance after moving

Moving is a milestone event in anyone's life, and it often comes with many tasks and challenges. One of these tasks is updating your car insurance policy. Whether you are moving across the country or just across town, you will need to contact your insurer to update your policy. Here is a step-by-step guide on how to switch your car insurance after moving:

Step 1: Contact Your Current Insurance Company

Get in touch with your current insurance company and inform them about your move. Ask them if they offer insurance in your new state. If they do, request a quote for the new location. They can also provide information about any changes in coverage costs associated with the relocation. If your current insurer does not offer coverage in your new state, you will need to find a new insurer.

Step 2: Learn About Your New State's Insurance Requirements

Each state has different insurance laws and requirements. Research and understand the minimum insurance requirements in your new state, as they may differ from your previous state. This information can usually be found on the state's Department of Motor Vehicles (DMV) website. Depending on the state, you may be required to carry additional coverages such as underinsured/uninsured motorist coverage, personal injury protection, or medical payments coverage.

Step 3: Shop and Compare Car Insurance Quotes

Even if your current insurance company offers coverage in your new state, it is a good idea to compare quotes from multiple insurers. Get quotes from at least three different insurance companies to ensure you are getting the best rate and coverage for your needs. Consider factors such as coverage limits, deductibles, and available discounts.

Step 4: Purchase a New Insurance Policy

Once you have compared quotes and found the policy that best suits your needs, it is time to purchase your new insurance policy. Sign up for the policy, make the first payment, and get the start date of your new policy in writing. Make sure there is no gap between the end date of your old policy and the start date of the new one to avoid any lapse in coverage.

Step 5: Cancel Your Old Insurance Policy

After your new policy is in effect, you can cancel your old insurance policy. If you are switching carriers, schedule the cancellation for the day your new policy begins to avoid any overlap or gap in coverage. Contact your old insurance company and follow any specific cancellation procedures they may have, such as providing written notice. If you have prepaid your premium, you may be eligible for a refund for the unused portion.

Additional Considerations:

• Timing: Most states require you to update your insurance, driver's license, and vehicle registration within one to three months of moving. Check with your new state's DMV to understand the specific requirements and deadlines.
• Billing Information: Update your insurance company with your new address to ensure you receive policy and payment notices and avoid any issues with billing or policy cancellation.
• Annual Mileage and Commuting Distance: Inform your insurance company about any changes in your annual mileage or commuting distance, as this can impact your rate.
• Vehicle Registration and License Plates: Visit your new state's DMV to register your vehicle and obtain new license plates. Provide the required documents, such as your driver's license, vehicle title, proof of insurance, proof of residence, and proof of identity.
• Driver's License: Depending on your new state, you may need to take a written exam or pass a vision test to obtain a new driver's license.

What to do if your insurance company doesn't cover your new state

If your insurance company doesn't cover your new state, you'll need to take several steps to ensure you're properly insured at your new address. Here's what to do:

• Contact your current insurance company: Ask them if they offer auto insurance in your new state. If they don't, you'll need to find a new provider. Even if they do, it's worth shopping around to see if you can get a better rate.
• Get quotes from multiple insurers: Compare rates and coverage options from several companies in your new state. This will help you find the best policy for your needs and budget.
• Understand your current company's cancellation terms: Some companies may charge a termination fee if you cancel your policy early. However, it's important to prioritize getting the right coverage for your new state over avoiding this fee.
• Confirm your new policy's start date: Ensure your new policy begins on the same date your old policy ends to avoid any lapses in coverage.
• Purchase a new policy: Choose a new insurance company and buy a policy that meets the requirements of your new state.
• Cancel your old policy: Once your new policy is in place, contact your previous insurance company to cancel your old policy. If you're staying with the same insurer, they may automatically cancel your old policy when the new one takes effect.

It's important to act quickly when switching your insurance after a move. Most states require you to update your insurance, driver's license, and vehicle registration within one to three months of establishing residency. Failing to make the switch within the deadline could result in a fine.

How to save money on your car insurance after moving

Moving to a new location can affect your car insurance rate, even if you are moving within the same city. This is because insurance companies use your ZIP code to assess risk and determine rates. So, if you don't update your insurance company about your move, you may face incorrect payments or even a policy cancellation.

• Shop around for insurance companies: Compare quotes from different insurance companies, including those that sell directly to consumers and those that use independent agents. Ask friends and relatives for recommendations, and research the company before committing. Remember, the lowest price isn't always the best option; choose a reputable company with good customer service.
• Compare insurance costs before buying a car: Auto insurance premiums are based on factors such as the car's price, repair costs, safety record, and likelihood of theft. Insurers offer discounts for features that reduce the risk of theft or personal injuries, or for cars known to be safe. Research the cost of insurance for different vehicles before buying a car.
• Raise your deductible: Choosing a higher deductible can significantly lower your premium costs. Just make sure you have enough money set aside to pay the higher deductible in case of a claim.
• Reduce optional insurance on older cars: If your older car is worth less than 10 times the insurance premium, consider dropping collision and comprehensive coverage. Check the value of your car using websites like Kelley Blue Book or National Association of Auto Dealers (NADA).
• Bundle your insurance: Many insurers offer discounts if you purchase multiple types of insurance, such as homeowners and auto, or insure more than one vehicle with them. Longtime customers may also be eligible for price breaks.
• Maintain a good credit history: Establishing a solid credit history can lower your insurance costs. Many insurers use credit information to price auto insurance policies, as research shows that people who effectively manage their credit tend to make fewer claims. Regularly check your credit record to ensure all information is accurate.
• Take advantage of low-mileage discounts: Some companies offer discounts for motorists who drive less than the average number of miles per year or carpool to work.
• Ask about group insurance: Some insurers offer reductions to drivers who get insurance through their employer or certain associations. Check with your employer or affiliated organizations to see if they offer group insurance plans.
• Seek out other discounts: Ask your insurer about any other discounts you may qualify for, such as a safe driving record, taking a defensive driving course, or having a young driver on your policy who is a good student.
• Review your coverage regularly: Update your insurance information at least once a year or after any major life changes, such as moving to a new location, getting a new job, or retiring. This will ensure your insurance coverage aligns with your current needs.

Frequently asked questions