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How to Choose Car Insurance When Moving to a New State
by
JG Wentworth
•
March 7, 2025
•
5 min
Moving to a new state is an adventure, with its share of to-dos and excitement. Amid the chaos of packing, renting trucks, and possibly saying your goodbyes, there’s one task that often goes overlooked until the last minute: updating your car insurance. Choosing the right car insurance policy when moving to a new state isn’t just about staying legal; it’s about ensuring your coverage fits your new circumstances. Here’s a comprehensive guide on how to navigate this crucial task.*
1. Understand Your New State’s Insurance Requirements
Each state has its own set of car insurance requirements. Most states mandate a minimum amount of liability insurance, which covers bodily injury and property damage that you may cause to others in an accident. Some states might also require additional coverage like personal injury protection (PIP) or uninsured motorist coverage.
Before you move, research the insurance laws in your new state. This information can usually be found on the state’s Department of Motor Vehicles (DMV) website. Understanding these requirements is the first step in assessing what kind of policy you need to secure.
2. Evaluate Your Current Coverage
Take a good look at your existing car insurance policy to see what’s covered and what isn’t. Does your current coverage meet or exceed your new state’s requirements? Sometimes, the coverage you have in one state will not suffice in another. For instance, if you’re moving from a state with low minimum liability requirements to one with higher requirements, you’ll need to adjust your policy accordingly.
See: What Does Full Coverage Car Insurance Cover?
3. Shop Around for New Insurance Quotes
Don’t assume your current insurer offers the best rates in your new state. Insurance premiums can vary dramatically from one state to another due to factors like weather conditions, state laws, and accident rates. It’s advisable to start shopping for car insurance quotes from multiple insurers as soon as you know your new address.
Use online comparison tools to compare quotes and policy features side by side. Make sure to customize the coverage options so you can make an apples-to-apples comparison. This exercise not only helps you find the best rate but also familiarizes you with insurers that are popular and highly regarded in your new home state.
4. Consider the Local Factors
Your new environment could impact your insurance needs. For example, if you’re moving from a rural area to a city, the chances of theft, vandalism, and collisions can increase, suggesting a need for comprehensive and collision coverage if you hadn’t needed it before.
Also, consider the weather conditions of your new state. If you’re moving to an area with frequent severe weather—like hurricanes in Florida or hailstorms in Texas—you might want to consider comprehensive coverage that covers weather-related damage.
5. Update Your Driver’s License and Registration
Most states require you to update your driver’s license and vehicle registration within a certain timeframe after moving, typically within 30 to 90 days. Check your new state’s DMV website for specific details. Registering your vehicle and obtaining a new driver’s license in your new state are often prerequisites for obtaining local insurance.
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6. Make the Switch at the Right Time
Timing is crucial when switching your car insurance. You don’t want to cancel your old policy too soon and risk a lapse in coverage, but you also need to ensure you’re legally covered when you start driving in your new state. A good strategy is to set your new policy to start the day before your old policy is canceled. Coordinate with both your current and future insurance providers to make the transition as smooth as possible.
7. Notify Your Current Insurer
Once you have secured insurance in your new state, inform your current insurer of your move and the date you will need your coverage to end. Providing advance notice helps avoid any gaps in your coverage and ensures you don’t pay for insurance in two states.
8. Keep Good Records
Throughout this process, keep records of all your interactions and transactions related to your car insurance. This includes saving copies of your new policies, cancellation of your old policy, and any correspondence with your insurance agents. These documents can be helpful in case there are disputes with your old insurer over your coverage period or if you need to verify coverage with your new insurer.
Conclusion
Choosing the right car insurance when moving to a new state requires a bit of research, planning, and timely action. By understanding your new state’s insurance requirements, shopping around for the best rates, and coordinating the transition without lapsing your coverage, you can ensure that you’re not only compliant with the law but also adequately protected as you start your new chapter. Whether you’re moving across the border or across the country, addressing your car insurance needs early in the moving process will give you peace of mind on the road ahead.
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*Any information provided on this site is for educational purposes only. JGW Connects, LLC is not an agent of you or any third party advertiser on this website. You should rely on your own judgement in deciding which available product, terms and provider that best suits your personal financial requirements. We do not offer financial advice, advisory or brokerage services. We recommend that you consult with our own independent advisors regarding these products and services
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