So you’re planning to move to a new state, maybe for a new job, or the weather in your current state is really bad (poor Ohio resident). Moving to a new state brings many changes, and these changes must be done in the right way to avoid problems.
One of these important changes is the change in vehicle registration and insurance provider. It is mandatory to register your vehicle in your new state and each state has a specific period during which you have to register your vehicle. But what about a car insurance company?
Change car insurance companies
It is not mandatory to change your auto insurance provider when you move to a new state. Because most states in the US have similar laws regarding car insurance; Liability coverage, personal injury protection plan, uninsured motorist coverage etc.
Because car insurance companies know that people change their status often, most major insurance providers have nationwide coverage. This means that no matter which state you move to, if your insurance company is present there, you don’t have to change your car insurance company. But that doesn’t mean you shouldn’t.
How to change car insurance when moving out of state?
Here’s a step-by-step guide to changing your car insurance company when you move your company out of your state or when you Transfer.
Step 1: Talk to your current insurer
The first thing to do is contact your insurance agent or insurance company and ask them if they operate in the state you are visiting. If they offer service in that state, you don’t need to change your insurer. The insurance company will transfer your policy (which may include a change in policy price).
Step 2: If they don’t work in the new state
If your current auto insurer does not offer their services in the state you are moving to, you will need to choose another car insurance company and select their plans. Make sure you find the best and most affordable car insurer.
For example, if you’re moving to Nevada, find out Cheap car insurance in Nevada And select the company that offers the best policy at the best price. After you finalize your choice, purchase all the compulsory and optional policies
Step 3: Cancel your current policy
Only after you purchase the new auto insurance policy (and complete registration, etc.), cancel your previous policy. It is not a safe thing to cancel your current car insurance policy before you buy a new one.
There are many cases where there may be a delay in activating the new policy and if you have already canceled your previous policy, this creates a “coverage gap” in your insurance. This “gap” may inflate future insurance costs.
Is there a price increase?
Moving to a new state can increase or decrease the cost of living. But what about insurance costs? Different states have different laws regarding car insurance. This may increase or decrease insurance costs.
Factors affecting your insurance rates include (when moving to a new state)
- Your driving record
- State law
- your area
- Insurance company
- Credit score
Having a bad driving record negatively affects your insurance rates. This means that the more tickets, points and accidents you have, the higher the rate you will have to pay for your car insurance. But the state you live in also makes a lot of difference.
For example, a speeding ticket may not raise your insurance rates in some states, while in others it may send your insurance rates sky-high. Some states treat rash driving more leniently than others.
The best way to avoid price gouging is to keep your driving record clean, avoid tickets and avoid accidents. No matter which state you visit, a clean driving record will save you a lot of money.
Here’s how your new state’s laws may affect your insurance rates. Let’s say you currently live in a state where only liability insurance is mandatory. So your car insurance includes liability insurance and some optional coverages like collision and comprehensive insurance.
But what if you move to another state that mandates not only liability insurance, but also personal injury protection and uninsured motorist coverage? You need to buy three with collision and comprehensive coverage. This will lead to higher insurance prices and premium rates.
Not only that. Some states have higher minimum coverage limits (the maximum amount your insurance policy must pay for liability insurance). Higher coverage limits mean higher insurance premium rates.
The area you live in (your zip code) also affects your insurance rates. If your area has high rates of car accidents, theft rates, etc., insurance companies will charge you more.
So if you move to a new state and a new place but the car theft rate is high in this place, you will have to pay more for comprehensive coverage. The opposite is also true; If you move to a place where car accidents and thefts are low, your insurance rates will go down.
This one is an obvious factor. The car insurance company you choose affects your insurance and premium rates. Even if you don’t change your auto insurer, you may end up paying more or less. This is because the insurer may have to include higher coverage limits, different policies, etc. based on state requirements.
Make sure you go for a new car insurance company that offers the best coverage at the lowest price. Don’t go for the cheapest option while ignoring coverage or consumer experience.
Some states take credit score as a factor when determining your insurance rate, while some states refrain from it. For example, California, Massachusetts and Hawaii bar insurance companies from using credit scores as a factor in determining rates. But other states use it.
So it was the whole process of changing your car insurance company when moving to a new state. You may not need to change your car insurance company if your current company is present in the new state. Contact your insurance company or insurer to find out more.