How to Change Car Insurance When Moving Out of State

If you just moved to another state with your own vehicle, then you should know that you have a pre-set period of time within which you have to register your car in that new state.

In reality, the deadline to register a vehicle will vary from state to state: you will have 30 days to complete the car registration if you’ve moved to New York but only 10 days to do it if you’ve just relocated to Florida.

Keep in mind that you’re required to register your vehicle in the new state only if you’ve moved there permanently – that is, you plan to live and work there in the foreseeable future.

However, if you’ve moved out of state temporarily – on a temporary work assignment or military assignment – then you don’t need to register your car since you do plan to go back to the state of origin after a while.

It’s important to know that car registration requirements differ from state to state. The thing is that even if you’ve moved to a state that does not require proof of car insurance for successful vehicle registration, you still need to have a valid car insurance policy to drive your car legally there.

When moving out of state, you may have to change your car insurance companies if your current insurance provider does not offer coverage in the state you have just moved to.

So, follow the steps below if you intend to switch car insurance companies when moving to a new state.

This is how you should change your car insurance when moving out of state.

Step 1. Do NOT cancel your current auto insurance too soon

The very first thing you should do is to avoid making the big mistake of canceling your current auto insurance policy too soon.

In fact, making any hasty decisions when you’re moving to another state could cost you dearly, so you should always think things through before you act. Haste makes waste and during a house move, this saying rings even truer than ever.

Keep in mind that it’s against the law to drive your car without proper insurance coverage. If you got into a car accident without valid auto insurance, then you would likely find out that you wouldn’t be able to cover the exorbitant damage costs out of your own pocket.  

In most cases, you’ll have nothing to gain by canceling your existing car insurance prematurely. Therefore, you must keep your current auto insurance policy until you’ve made sure you’ve set up a new one in the destination state.

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Step 2. Contact your current insurance company

The next step is to contact your current car insurer and ask them if they also offer auto insurance in the state you’re moving to or you just moved to. If they do have coverage in the new state, then you may as well stay with the same insurance company.

What are the pros of staying with the same auto insurer provided that they offer coverage in the new state?

First of all, the process of purchasing new auto insurance in the new state will be much simpler since you won’t need to look for a new insurance company and then negotiate a good deal with them. And secondly, you’re very likely to keep any loyalty discounts you may have with your current insurer.

So far, so good. But what are the cons of keeping the same car insurance company?

Even if you decide to stay with your current auto insurance company, your policy rates and coverage may change in accordance with the minimum insurance required by the new state. Suddenly, your auto insurer may not be the one offering the best insurance rates in that new state.

It’s important to know that if you decide to switch your car insurance company after moving out of state (and in most cases, you will have to do it), then you may receive a prorated refund from your current insurer since your policy will still be valid. In such a case, you may have to pay a cancellation fee.

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Step 3. Check the requirements of the new state

What you should do next is visit the website of the Department of Motor Vehicles (DMV) for your new state in order to learn the legal requirements for registering a vehicle in the state and purchasing adequate auto insurance.

The first thing to find out is the deadline for registering a car in the state. By knowing this piece of information, you will know how much time you’ve got to complete that essential post-move task and will be able to plan your time accordingly.

As you can guess, failure to purchase auto insurance in the new state, register your car, and update your driver’s license within the specified period can result in a fine.

There will be different versions of car insurance depending on which state you’ve moved to. When moving to a no-fault state (a no-fault insurance system means that in case of a car accident, the car insurance company will pay for the cost of damages up to a pre-determined limit regardless of who is at fault for the accident), you are likely to pay higher premiums.

If your new state happens to be a true no-fault state, then every car driver is required by law to have a Personal Injury Protection (PIP) policy.

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Step 4. Find a good car insurance company in the new state

Now that you are familiar with the car registration requirements in the new state, it’s time to purchase a new car insurance policy. Basically, what this means is that you will need to compare the policy rates and coverage terms and conditions of several reputable auto insurers in order to get the best deal.

As long as your current car insurance company has coverage in the new state, buying the new policy from them will be the easiest option for you because of the minimum amount of hassle you’ll have to go through. Also, you should be able to keep any loyalty discounts you have with your car insurer.

However, it does not necessarily mean that your car insurer will have the best policy rates in the new state. And that’s exactly why it’s definitely worth comparing their rates with those of other insurance companies in the state – either national or local ones.

So, request at least three quotes from top-rated auto insurance companies from the state. Compare their rates and conditions to see which insurer will work out best in your case.

If your current auto insurer does not offer coverage in your new state, then you can ask them to recommend a good and affordable car insurance company in the area you’ve just moved to. Again, you should get quotes from no less than three different insurance companies before deciding to purchase coverage.

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Step 5. Purchase a new car insurance policy

Now it’s time to purchase a new auto insurance policy.

• Contact the auto insurance company you’ve picked and complete the necessary paperwork as soon as you’ve made your final decision.
• Provide the insurer with all the information they need.
• Make the first payment toward the premium.
• Ask the auto insurance company to set the start date of the new insurance policy for the next day.
• Make sure the start day is in writing.
• Make a decision about the deductible. In effect, the higher the deductible you choose to pay in case of a car accident, the lower the premium cost should be.
• Keep in mind that the final cost of your car insurance policy will depend on a number of factors such as your age, your driving history, as well as the make and model of your vehicle.

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Step 6. Cancel your old car insurance policy

Remember to contact your previous auto insurance company (in case you’ve decided to trust a different auto insurer) and request the cancellation of your current policy.

Ask them to set the final date of the policy to be the same date you’re calling them so that your old insurance policy and the new one can be synchronized, thus eliminating the possibility of you staying without proper auto coverage, not even for one day.

As mentioned above, be careful not to discontinue your existing insurance policy before you purchase and set up a new policy. There are a couple of reasons for the extra caution here:

1. You will be fined if you get caught driving across states without proper auto insurance; and
2. You will be responsible for all expenses if you happen to get involved in a car accident.

Also, you should inform your former car insurance company of your new address in case they wish to get in touch with you by mail. What’s more, the auto insurer may need to send you a refund check for the remaining sum after you’ve decided to switch insurance policies mid-policy instead of waiting until your car insurance is up for renewal.  

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Step 7. Register your vehicle and update your driver’s license

Now that you have purchased an auto insurance policy from the new state, the next thing you should do is register the car in that same state.

Remember that there’s a vehicle registration deadline and if you fail to meet it, you may be fined.

The most important thing you should remember before you head down to the nearest DMV office to take care of that task is that vehicle registration requirements are different for each state and you may be asked to present a document you had no idea you needed.

So be smart about it and call the DMV office in advance to know exactly what documentation you’ll have to carry with you during the vehicle registration process.

In the majority of cases, you’re going to need these documents in order to register your vehicle in a new state:

• Driver’s license
• Proof of insurance
• The title of your car
• Current registration.

Interestingly enough, some U.S. states may require a document showing residency status and proof of identity that’s not your driver’s license: for example, a passport, a military card, or a Medicaid card.

How to Register a Car in Another State After Moving

Here are the steps that will enable you to register your vehicle in another state after you have switched your car insurance:

• Go to your local DMV office.
• Provide the documents they ask you to present.
• Fill out a vehicle registration form and a title registration form.
• Pay the vehicle registration fee ($30-$60).
• Finish the car registration process to get your new license plates.

After you’ve moved to a new state permanently, you’ll also need to get a new driver’s license issued by the new state. Follow the link below to learn the steps you need to take to update your driver’s license when moving out of state.

How to Update Driver’s License When Moving Out of State