DETROIT – The question of whether or not you need to change your car insurance is one many drivers grapple with when moving out of state. And rightly so.
The regulation of the auto insurance industry falls under the jurisdiction of the respective states, and these regulations differ across the various states.
When relocating, typically there are plenty of items on your to-do list that require your attention, from sourcing moving supplies, to booking moving companies, packing the house, switching utility providers, you name it.
Good thing is, managing car insurance is one of the easier items on your list.
Below, we answer some of the most common questions to do with cross-state car insurance management.
Do I need to change car insurance when I move to a different state?
Yes or no. It depends on the state you’re moving to as different states have different levels of automobile coverage.
That means you need to confirm the laws in your destination state to ensure your policy stands up to that state’s laws as pertains to automobile insurance coverage.
So, how do I learn about the auto insurance requirements of my destination state?
Easy. You can either call your car insurance company or look up the updated info on the Internet, which is widely available. If you’re moving to Colorado you can search for car insurance colorado available online.
In the case of the former, confirm whether the company operates in your new state or whether you’ll need to switch coverage. While you’re at it, also fill them in on whether you plan to add or remove drivers from your car insurance policy.
Why does my car insurance premium have to change when moving?
That’s because car insurance companies have to factor in a range of factors which are unique to each state; factors that have the potential to affect your driving abilities or increase/decrease your chances of filing a claim.
For instance, your premium could be affected by variables like crime rates, traffic patterns, or the risk of natural calamities in the state.
For example, drivers in larger cities (where crime rate is higher) might need to increase their coverage to cater for potential car theft or vandalism. Similarly, a driver in Florida has a significantly higher risk of suffering a hurricane damage than one in Illinois.
How about when moving to a no-fault state?
Also known as personal injury protection, no-fault insurance is a type of car insurance that covers any income losses, medical expenses, and/or funeral costs resulting from a car accident irrespective of which driver (you or the other driver) was at fault.
If you’re moving from a non-no-fault state to a no-fault one, you’ll most likely be required to change your policy. This is information your insurance agent should be able to furnish you with.
What do I need to do after purchasing a new auto insurance policy?
Get in touch with a representative from your insurance company confirming the dates your new policy will be taking effect. Let your former provider know that you’ll be switching companies and confirm an end date with them – if you’ll be switching insurance providers.
If you’ll be sticking with the same company, confirm an end date for the old policy and don’t forget to request your new insurance cards which you should keep safely in your purse.
Do I need to register my vehicle when I move to a different state?
That’s right. Chances are you’ll be required to register your vehicle once you move to a new state – in addition to changing your car insurance policy.
Requirements will be different depending on state, but most do afford you a one-month window in which to register your vehicle upon start of your occupancy.
Registering your vehicle in the new state and getting your new driver’s license shouldn’t be a big deal, assuming everything is in order.
And that’s what you need to know!
This column was written by Joe Polsky
