Car Insurance When Moving to Another State: Everything You Need to Know

By Randy Luton | Last Updated: 09/29/2023

There are crucial actions to take after getting your new address, whether you’re relocating down the block, across town, or across the nation. Moving necessitates adjustments to your insurance coverage, even if it may not be front of mind.

If you’re relocating to a new state, your existing insurance can provide you with temporary coverage while you’re on the road to your new location. But, to meet car insurance requirements in your new state of residence, you will need to either update your current coverage or purchase a new car insurance policy. As soon as you know when and where you’re relocating, you should start making preparations for it.

Also, you might need to adjust your coverage after relocating, and your pricing might even alter if you simply change ZIP codes. When changing your auto insurance is necessary, the best time to do it, how to transfer providers if necessary, and other moving-related considerations are discussed in this blog.

Why does car insurance need to be adjusted after moving to a new state?

That’s because each state has its own regulations for car insurance. Most states mandate a minimum liability car insurance, and some may even call for additional certain insurance policies.

Some states require only property damage coverage and bodily injury coverage while other require PIP too. Also, the value of these coverages varies from state to state which is why it is important to adjust your policy with a car insurance transfer to another state.

As a result, you might have to pay more or less for your average car insurance cost based on your new location.

How do you change your auto insurance after moving to a new state?

If you relocate, following these steps might help you effortlessly switch your auto insurance:

  • Get quotations from various insurers: Even if your existing insurance provider is able to offer coverage in the new state, even if it was the lowest at your previous residence, there is no assurance that it would provide the best prices.
  • Confirm the starting date of your policy: Be sure there are no gaps in your coverage between plans; not only is this illegal in areas where vehicle insurance is required, but it also puts you in significant danger.
  • Cancel your previous insurance coverage: Be sure you are not doubly invoiced for insurance once your new policy begins since some insurers require formal notification of cancellation.
  • Change your registration plates and apply for a new license: When moving to a new state, you must also obtain a new driver’s license in addition to updating your insurance and registration information. If you wait too long to update your driver’s license after moving, you might pay penalties and other penalties.

How long do you have to change car insurance when moving to another state?

Depending on the scenario and the insurance provider, there can be a grace period when you relocate. Before making changes at the DMV office, including acquiring a new driver’s license or transferring your car title, the majority of states need that you have insurance in place. To find out how long you have to make these adjustments, you need also to contact the DMV in the state where you will be relocating.

If you don’t make the modifications quickly enough following your relocation, some may penalize you. You may make sure you fulfill deadlines within the grace period for the insurance company and DMV by getting in touch with your insurance agent and the DMV in your new state.

Frequently Asked Questions

  • Does car insurance cover moving to another state?

    No, your car insurance policy will not cover you if you change your state. Even if you can continue with the same insurer, you’ll need new auto insurance coverage if you’re relocating out of state. Due to the fact that every state has different standards for coverage, your previous insurance will be canceled.

  • What effect does car insurance have when moving to another State?

    Your auto insurance rate will be impacted by your out-of-state move. There are several factors that affect the car insurance rates for a person and the location of the driver plays an important role.

    While rates are partly dependent on a region’s claims history, lower rates in your new neighborhood may be the consequence of fewer thefts, break-ins, and accidents, and vice versa.

  • What about relocating to the same state?

    You do not need to obtain new insurance if you want to remain in the same state. Just let your auto insurance company know of your new address. You don’t have to visit the office for most of insurance companies, you may call or go online to change your address.

    Although the difference will probably be less than if you moved out of state, moving within the same state will still have an impact on your vehicle insurance cost.

  • Can I change my auto insurance company if I have an unresolved claim with my current company?

    Although you still have an open claim, some businesses may let you transfer providers, but there can be problems with compensation along the route. Until a claim is completed, a company does not know how much the ultimate payout was. Before choosing a new provider if you have an open claim, you might wish to check with your employer.

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Editorial Guidelines: The above is meant as general information to help you understand the different aspects of auto insurance. This information does not refer to any specific auto insurance policy. Coverages and other features vary between insurers, vary by state, and are not available in all states. References to costs of coverages/repair, average or typical premiums, amounts of losses, deductibles, etc., are indicative and may not apply to your situation. We encourage you to speak to our insurance representative and to read your policy contract to fully understand your coverages.

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Randy Luton is the Founder and CEO of RateForce. He is passionate about InsurTech services and has in-depth knowledge about the auto insurance sector of the USA.