Relocating to a different state can be an exciting adventure, but it also comes with a list of important tasks to tackle. These include updating your driver’s license, registering your vehicle, and making sure your auto insurance is in order. While you generally have a grace period of about 90 days to complete these tasks after moving, it’s advisable to address your car insurance early to avoid any gaps in coverage or potential penalties.
When moving to a new state, it’s crucial to get in touch with your current insurance provider to understand the insurance requirements and regulations specific to your new location. This is also a good opportunity to explore different insurance options and compare quotes to ensure you’re getting the best coverage at the most competitive rates.
To help you navigate the process smoothly, we’ve outlined the necessary steps to take and the sequence in which to take them to safeguard your protection during and after your move.
Key points covered in this article:
– Understanding the insurance coverage needed in your new state
– Four essential steps for updating your insurance and paperwork
Prior to your move, here are three important tasks to complete:
While your existing auto insurance may offer temporary coverage during your move, it’s essential to update your policy once you’ve settled in your new state. Each state has its own regulations and requirements for insurance coverage, so it’s likely that you’ll need a new policy that complies with the laws of your new state.
Even if your current insurer operates in your new state, they may still need to issue you a new policy instead of transferring your existing one. Before you embark on your journey to your new home, follow these steps to prepare for transitioning your insurance policies after you’ve relocated.
✅ 1. Get in touch with your current insurance provider
Contact your insurance agent as soon as you have your moving date and new address confirmed. They can inform you about their operations in your new state and help you understand the necessary changes to your policy. While your current insurer may be able to transfer your coverage, it’s likely that your rates will be adjusted based on the requirements and risk factors associated with your new ZIP code.
Learn more: Tips for switching to a new car insurance company (and saving money in the process)
✅ 2. Familiarize yourself with the auto insurance regulations in your new state
Auto insurance laws and claim procedures vary from state to state. To ensure that you have adequate coverage under your new policy, it’s important to know the insurance requirements in your new state and the liability system in place for determining fault in accidents.
States typically follow one of three systems for resolving accident claims:
– At-fault states: The person responsible for the accident is liable for the damages.
– No-fault states: Your insurance covers your injuries and lost wages regardless of fault.
– Modified no-fault states: A combination of at-fault and no-fault rules apply.
Understanding these systems will help you navigate
One person’s car repairs and potential lawsuits can depend on the type of insurance system in place. In some states, like Delaware, New York, and Michigan, a threshold must be met for bodily injury liability coverage to kick in. This threshold is typically related to the severity of injuries or medical expenses incurred.
In choice no-fault states, drivers can choose between at-fault or no-fault insurance when purchasing a policy. Opting for no-fault insurance means your own insurance will cover your injuries, regardless of who caused the accident. On the other hand, selecting at-fault insurance allows you to retain the right to sue the other driver, but it may result in higher premiums. Only Kentucky, New Jersey, and Pennsylvania offer this choice to drivers.
John Beck, a founding partner at Beck & Beck Car Accident Lawyers, explains that under at-fault insurance, the driver responsible for the accident is obligated to cover damages and injuries. This is the system that most people are familiar with, where the at-fault party or their insurer is expected to pay for any harm caused.
In contrast, no-fault insurance involves your own insurance covering your damages and medical expenses, regardless of fault. However, this usually limits your ability to sue unless the injuries are severe or surpass certain thresholds. Choice no-fault systems provide drivers with the flexibility to opt for either an at-fault or no-fault coverage model.
Attorney Benson Varghese from Varghese Summersett highlights that no-fault states may experience reduced litigation but increased insurance costs, as drivers are responsible for their own injuries. While choice no-fault systems offer drivers the option to select between models, the long-term financial implications may not always be apparent.
Beyond basic liability coverage, states may have varying additional coverage requirements. For instance, no-fault states typically mandate Personal Injury Protection (PIP) coverage, which helps cover medical expenses, lost wages, and essential services following an accident.
Uninsured/Underinsured Motorist (UM/UIM) coverage steps in when you are involved in an accident with an uninsured or underinsured driver, ensuring you are not burdened with significant repair or medical expenses. Medical Payments Coverage, also known as MedPay, is available in some states to supplement health insurance by covering medical expenses not paid for by health insurance.
Understanding the nuances of insurance coverage and requirements in your state can help protect you financially in the event of a car accident.
Filling the gaps in your health insurance coverage when needed.
Delve deeper: Discover 7 surprising situations where your standard car insurance may not provide coverage (and learn how to stay protected).
✅ 3. Compare rates for new policies
While sticking with your current insurance provider might seem convenient, exploring different quotes could help you save a significant amount of money. Begin obtaining quotes around three to four weeks before your relocation. This timeframe allows you to thoroughly compare rates and ensure that your new policy aligns with your moving date. Many insurers offer the option to set up a policy up to 30 days in advance, and obtaining quotes early can prevent you from making hasty decisions amidst the chaos of moving. Set the start date of your new policy to coincide with your move to maintain uninterrupted coverage.
According to a recent analysis by Consumer Reports, the price difference between the highest and lowest-priced major insurers is over $750 per year for the same level of coverage. For instance, USAA typically offers the lowest rates at $817 annually, while Allstate averages $1,570.
Insurance companies assess risk differently in each state, so your current provider may not necessarily offer the most competitive deal in your new area. This is particularly relevant as auto policy costs, as reported by J.D. Power, have surged over 20% in 2024.
A prudent approach is to obtain quotes from at least three companies, considering both national providers and local insurers in your new state. It’s essential to compare identical coverage levels and not just focus on pricing. A quote may appear more affordable due to lower protection or higher deductibles.
Delve deeper: When is the optimal time to shop for car insurance? It could be right now.
Determining the coverage you need in your new state is crucial. Ensuring that you meet the insurance requirements of your new state helps you avoid fines, license suspension, and legal complications. In many instances, surpassing the state’s minimum coverage might be advisable to guarantee adequate protection on the road.
Minimum coverage regulations:
Each state establishes its own minimum coverage regulations, which are non-negotiable. Compliance with these requirements is mandatory before registering your car or obtaining a new license. While state minimums safeguard other drivers on the road, they might not suffice to protect your vehicle or cover all expenses in a severe accident. For instance, if your state mandates only $10,000 in property damage coverage and an accident you cause results in $30,000 in damages to another vehicle, you could be liable for the remaining $20,000. In the event of a lawsuit from the other driver, you may also be required to cover legal expenses out of pocket.
Attorney Benson Varghese highlights, “Most states mandate updating your car registration and insurance within 30 days of residency. Failing to comply could result in fines or periods of being uninsured.”
Driving without adequate coverage can lead to substantial financial consequences. Penalties and fines for a first offense can
Do you live in an area with a high number of uninsured drivers? Are you frequently faced with heavy traffic or extreme weather conditions, such as hailstorms or hurricanes? These factors should influence your decisions regarding additional insurance coverage. Most insurance professionals recommend having liability coverage of at least $100,000 per person and $300,000 per accident. This amount is suggested because medical expenses can escalate rapidly in case of hospitalization and necessary medical treatment. Having adequate coverage can safeguard your savings and assets in the event you are sued following a serious at-fault accident.
Attorney John Beck advises aiming for higher liability limits if possible, as the standard $100,000 per person and $300,000 per accident may not suffice, particularly if you possess substantial assets that need protection. The increase in premiums for higher coverage is generally minimal compared to the financial jeopardy if you are held liable for a major accident. Apart from the basics, some insurers offer additional protections that can enhance the security of your vehicle, loved ones, and yourself.
**Comprehensive Coverage:** This protects your car against various damages apart from accidents, including theft, storm damage, or fire. Lenders typically mandate this coverage if you are still financing or leasing your vehicle.
**Collision Coverage:** This assists in covering repair or replacement costs for your car after an accident, regardless of fault. Similar to comprehensive coverage, lenders often require this until you fully own the vehicle.
**Gap Insurance:** If you owe more on your car than its current value and it is declared a total loss, gap insurance bridges the gap. This is beneficial for new cars that depreciate rapidly.
**Rental Car Coverage:** This provision covers the expenses of a rental car while your vehicle is being repaired after a covered accident. It can save you money on daily rental charges.
**Roadside Assistance:** This service offers help if your car breaks down while you are driving, addressing issues like dead batteries or flat tires. It is particularly useful when you are in an unfamiliar area and lack knowledge of reliable towing services.
**Mechanical Breakdown Coverage:** This functions as a warranty for costly repairs but usually costs less than what dealerships charge. Not all insurers offer this, with larger companies like Geico being more likely to provide it.
**New Car Replacement:** In the case of a covered accident resulting in a total loss of your new vehicle, this coverage pays for the full replacement costs of a new car of the same make and model, rather than just the depreciated value. Only a select few insurers, such as Liberty Mutual and Allstate, offer this for cars under one to two years old.
**Rideshare Coverage:** If you are a driver for Uber, Lyft, or other rideshare services, this add-on is essential. Regular car insurance typically excludes coverage for rideshare driving and may not cover damages in case of an accident while transporting paying passengers.
While adding these protections might lead to an increase in your premium, the added security often proves to be worth the
If someone else is responsible for a car accident and they do not have insurance or do not have enough coverage, your own uninsured/underinsured motorist (UM/UIM) coverage may step in to cover the losses.
For a more in-depth look, here are some key points to consider when it comes to full-coverage car insurance and the steps you need to take after moving to a new state with regards to insurance and registration:
1. Establish your new insurance policy:
After determining the required minimum coverage and additional protection needed in your new state, it is important to set up your new insurance policy before moving. Ensure the effective date aligns with your relocation to avoid any gaps in coverage. You can initiate this process online or over the phone by providing details such as your new address, vehicle information, driver’s license numbers, and prior insurance history. Your insurer will then issue new insurance cards and policy documents for you to keep on hand, especially for registration purposes at the new Department of Motor Vehicles (DMV).
2. Obtain your new driver’s license:
Obtaining your new driver’s license should be a priority after moving, as many states require it for vehicle registration. While the timeframe varies, most states allow up to 90 days to convert your license. Contact your new state’s DMV for specific requirements, which may include surrendering your old license, passing vision and written tests, and providing proof of residency and payment for relevant fees.
3. Complete your vehicle registration:
Once you have obtained your new driver’s license, proceed to register your vehicle within the allocated grace period, typically matching the license deadline. This process usually involves an in-person visit to the DMV and may include additional steps like emissions testing or inspections. Registration fees vary by state and may be influenced by factors such as vehicle type (e.g., hybrid or electric cars). Prepare to provide general information along with your new state driver’s license for a smooth registration process.
By following these essential steps in the correct order, you can ensure a seamless transition of your car insurance and registration when moving to a new state.
To register your vehicle and obtain insurance coverage meeting state minimums, you will need to provide the following documents:
– Your vehicle title
– A recent bill of sale, if applicable
– Results from any required inspections
– Payment for registration fees
Additionally, you must show at least two proofs of residency, such as:
– A signed lease or mortgage document
– Utility bills in your name
– Recent bank statements
– Pay stubs reflecting your new address
Once registered, you will receive your new license plate. Some states, like Florida, New Jersey, and Pennsylvania, require you to return your old license plates.
To switch to a new insurance policy, follow these steps:
1. Cancel your old insurance policy to avoid coverage gaps and potential rate increases.
2. Check the refund policies of your insurer regarding unused premiums.
3. Keep a copy of your old policy documents for future reference.
For more information on car insurance and cost-saving tips, browse through AOL’s guides. Remember to inform your insurance company of any changes in address or state to ensure continued coverage and compliance with regulations.
Is car insurance cheapér if I drive a red car? No, it doesn’t — but that’s one of the most persistent myths about car insurance. Your insurance company doesn’t care about color when setting your rates. Instead, they look at practical factors like your car’s make and model, safety ratings, engine specs, repair costs, and how likely that model is to get stolen. The only time color might indirectly affect your costs is if you paid extra for a specialized paint job that increased your car’s overall value.
What’s the best way to lower my car insurance rate? One of the most effective ways to save money is to shop around for quotes, since every insurance company calculates risk differently. You can typically save more money by taking a defensive driving course, bundling your home and auto policies, and even more by maintaining good credit since most insurers use credit scores to set rates. While usage-based insurance programs offer discounts of 5% to 40% for safe driving habits, remember they track details about your driving patterns and location — so weigh whether the savings justify sharing that data. Learn more in our guide to smart ways to save on car insurance.
Will my insurance rate go up when I move to a new state? Not necessarily. Your rate depends on various factors, including some that depend on your new location like traffic density, accident rates, weather patterns, and even the cost of car repairs in that area. While moving to a major city might increase your premium due to higher accident risks and repair costs, relocating to a rural area could actually lower your rates. For example, moving from Manhattan to rural Vermont could save you money on your car insurance.
How do I move registration and insurance for a leased car? You’ll need to coordinate with both your leasing company and insurance provider when moving states with a leased vehicle. Leasing companies typically require full coverage insurance with specific liability limits that may exceed your new state’s minimums. They may also have their timeframe for updating registration that differs from state requirements. Contact your leasing company before moving to understand their specific requirements and avoid any lease violations.
