Navigating Insurance County Changes: A Comprehensive Guide

Changing insurance counties can be a tedious process, but it is necessary when moving to a new state or county. The process can vary depending on the type of insurance, such as car insurance or health insurance, and whether you are moving in-state or out-of-state. It is important to understand the requirements and regulations of your new location to ensure you have the correct coverage. In some cases, you may need to switch insurance providers if your current company does not offer coverage in your new state. Additionally, insurance rates can be influenced by various factors, including the claims history of the area, annual mileage, and commuting distance. Therefore, it is recommended to compare rates and coverage options from multiple providers to find the best fit for your new location.

Contact your current insurance provider

Contacting your current insurance provider is the first step in transferring your insurance to a new state. Here are some detailed instructions on what to do:

Get in touch with your current insurance provider as soon as possible. It is important not to cancel your current insurance coverage until you have purchased a new policy, as a lapse in coverage is illegal in most cases and can leave you financially responsible if you are in an accident. Your current insurance provider will be able to tell you if they offer coverage in your new state, and staying with them may allow you to maintain any loyalty discounts. Ask your agent about the process of transferring insurance to another state, and whether you will need to find a new agent.

Learn About Your New State's Insurance Requirements

Each state has different insurance requirements, so it is important to understand these before purchasing a new policy. For example, some states have no-fault insurance laws, which require insurance companies to compensate their policyholders for injury costs regardless of who was at fault. These policies typically include personal injury protection (PIP), with minimums and benefits set by each state. Bodily injury liability and property damage liability are also covered by state minimums, and you will likely want to purchase coverage beyond these minimums. Twenty US states also require additional coverage for uninsured motorists. Understanding these requirements will help you compare quotes for a new policy.

Shop Around for a New Policy

While staying with your current provider may be the simplest option, it is worth shopping around to ensure you get the best rate. Compare rates from at least three providers, and consider providers that offer discounts relevant to you. For example, State Farm offers a student discount of up to 25%. You can also consider usage-based insurance or pay-per-mile programs if you want to save money based on your driving habits. Once you have found a few favourite providers, research each company's customer service and claims handling to make an informed decision.

Purchase Your New Policy

When you have found the best new policy for your needs, it is time to purchase it. Schedule the new policy to begin at least one day before your current coverage expires to avoid a lapse in coverage, which could increase your insurance rates in the future. If you are switching in the middle of a policy period, simply schedule the new coverage to begin whenever you would like. Remember to list your lender on your new policy if you have an auto loan or lease.

Cancel Your Old Policy

Once your new insurance coverage is in place, you can start the cancellation process for your old policy. Call your insurance company to cancel your coverage at least one day after your new policy begins. If you paid for your old policy in advance, you should receive a refund for the unused portion.

Learn your state's insurance minimums

Each state has different auto insurance requirements. Here are some of the essential insurance standards to know:

No-Fault Insurance

No-fault insurance is available in twelve states and Puerto Rico. These systems require insurance companies to compensate their policyholders for the cost of injuries, regardless of who was at fault. No-fault insurance typically includes 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 the costs of 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.

Shop around for quotes

Shopping around for insurance quotes is a great way to save money and find the best policy for your needs. Here are some tips to help you get started:

• Understand your coverage options: Different types of insurance coverage are available, such as liability, comprehensive, collision, personal injury protection, and uninsured/underinsured motorist coverage. Research the different options and decide which types of coverage you need.
• Choose your deductible: Your deductible is the amount you need to pay toward a claim before your insurance coverage kicks in. Typically, you only have a deductible for comprehensive, collision, and gap insurance coverages. A higher deductible usually results in a lower premium.
• Compare premium quotes: The premium is the bottom line—the total cost of your insurance per payment cycle. Compare premiums from different insurance providers, making sure that each quote includes the same types and amounts of coverage. This will ensure that you are making an accurate comparison.
• Consider various insurance providers: You can get insurance quotes from different sources, including insurance agents, brokers, or individual insurance companies. You can contact them directly via phone or the internet. Online comparison tools and websites can also help you compare quotes from multiple providers at once.
• Provide accurate information: When obtaining quotes, make sure to answer questions about your driving history, vehicles, and other relevant details accurately and honestly. Lying to get a better rate is considered insurance fraud. Have your current policy and vehicle information handy to provide accurate details.
• Don't shop by price alone: While price is important, it's not the only factor to consider. Look into the insurance company's claim practices, reliability, services provided, types of products and coverages offered, and customer satisfaction ratings.
• Research the new company: Before purchasing a policy, research the insurance company thoroughly. Check their financial stability, customer service, and claims satisfaction ratings. This will help ensure that you choose a reputable and reliable company that meets your needs.

Purchase your new car insurance policy

When purchasing a new car, you will need to insure it before you can drive it off the lot and take it home. If you already have car insurance, your new car will be covered by your existing policy for a grace period of around 7 to 30 days. However, you should still notify your insurance company about your new car as soon as possible, as your rates will probably change.

If you don't have car insurance, you'll need to get a policy before you can drive your new car. Here are the steps to follow:

• Shop around for quotes: Compare car insurance quotes from multiple insurers. This will allow you to find the best rate and ensure that your new car is fully covered. You will need to know the make, model, and vehicle identification number (VIN) of the car you plan to buy.
• Apply for a policy: Once you know the car you want to buy, contact your chosen insurance provider and apply for a new policy. You will need to provide information such as your name, address, date of birth, driver's license number, and the VIN of the vehicle.
• Purchase the policy: After comparing rates and choosing the best option for you, purchase your new car insurance policy. Make sure to schedule the new policy to begin at least one day before your current coverage expires to avoid a lapse in coverage, as this can increase your insurance rates in the future.
• Get proof of insurance: After purchasing your new policy, you will need to print out or download an electronic version of your insurance ID card. Most states allow you to show a digital ID card if you are pulled over.
• Notify your lender: If you have a car loan or lease, you will need to inform your lender of your new insurance coverage. Your lender will need to be listed on your new policy if you have an auto loan.

Cancel your previous insurance

Cancelling your previous insurance is a simple process, but it's important to get it right to avoid a lapse in coverage. Here are the steps you need to take:

Purchase a new policy

Before cancelling your existing insurance, it's important to secure a new policy to avoid any gaps in coverage. Driving without insurance is illegal in most states and can result in fines and increased insurance rates in the future. Contact your new insurance provider and finalise the details of your new policy, making sure that the start date of your new policy overlaps with the end date of your old policy by at least one day.

Contact your current insurance provider

Once you have your new insurance in place, it's time to reach out to your current insurance company to initiate the cancellation process. You can do this by calling your insurer, contacting an agent through their website or mobile app, mailing in a cancellation request, or speaking to an agent in person. Ask to speak with an agent to clarify the specific requirements for cancelling your policy, as they may vary depending on the company.

Ask about cancellation requirements

Your insurance provider may have certain requirements for cancelling a policy, such as a cancellation fee or a 30-day notice period before the intended cancellation date. Some providers may also require you to sign and submit a cancellation letter, which includes your policy number, name, and the desired date for cancellation. If you have prepaid your policy for a certain period, you can also include a refund request for the unused portion of your coverage.

Request a policy cancellation notice

Once your cancellation has been finalised, ask your insurance carrier to provide a written notice confirming that your policy has been officially cancelled. This documentation will serve as proof that you have terminated your policy and help you keep track of the effective cancellation date.

Handle any refunds or fees

If you prepaid your previous insurance policy, you may be eligible for a refund for the unused portion. However, your insurance company may deduct an early cancellation penalty from this amount, so be sure to review your policy paperwork to see if this applies to you. Additionally, some companies may charge a cancellation fee, which can be a flat fee or a percentage of the remaining policy premium.

By following these steps, you can effectively cancel your previous insurance policy when changing insurance counties. Remember to allow for some overlap between your old and new policies to ensure continuous coverage and avoid any penalties or fines.

Frequently asked questions