The only constant in life is change, and when it comes to moving, there's no exception.
It doesn’t matter if you are relocating to a new city or state; adjusting your car insurance is one of the most important steps you'll need to take.
According to the Insurance Information Institute, about 14% of drivers are uninsured, which means not having the right coverage when you move could leave you vulnerable to significant financial risk.
When you change your address, your risk profile can shift dramatically.
If you're moving from a rural area to a big city, your risk of accidents, theft, and vandalism could go up.
On the flip side, if you're moving to a quieter suburban area, you might be able to save money by adjusting your coverage.
But you need to get this right.
Failing to update your car insurance policy could result in breaking the law in some states or leaving you financially exposed after an accident.
With the right knowledge, handling this process doesn’t have to be overwhelming.
We're here to guide you through the steps of changing your car insurance when you move to make sure you're fully protected and legally compliant.
Step 1: Notify Your Current Insurance Provider
As soon as you know you're moving, the first thing you should do is contact your current insurance company.
This is the starting point because your current policy might not cover you adequately in your new location, especially if you're moving to a different state.
Why notify your insurer? Insurance companies often adjust premiums based on the area you live in.
If you're moving to a more urban area, your premiums might increase due to higher risks associated with more traffic and accidents.
Alternatively, if you're moving to a rural area, you might see a decrease in premiums.
What to expect? You may also need to update your policy with the new address.
Your current provider will ask for details about your new location, and they'll guide you on how to proceed.
They may even be able to offer coverage in your new location, but it's always a good idea to verify their rates and compare them with other providers.
Remember, how to change car insurance when you move depends on whether your current insurer operates in your new area.
If they don’t, you may need to find a new provider.
Step 2: Research State-Specific Insurance Requirements
Every state has its own car insurance laws, so it is compulsory to understand your new state’s minimum coverage requirements.
In the United States, car insurance is mandatory in almost every state, and different states have different laws.
For example:
California requires a minimum of 15/30/5 liability coverage (15,000 for injury to one person, 30,000 for injury to two or more people, and 5,000 for property damage).
Texas, on the other hand, requires 30/60/25 coverage (30,000 for injury to one person, 60,000 for two or more people, and 25,000 for property damage).
Why does this matter? If you're moving to a state with higher minimum coverage requirements, you'll need to adjust your policy.
Conversely, if you're moving to a state with lower requirements, you may have the option to reduce coverage, but it’s always a good idea to ensure you're not under-insured.
Step 3: Get New Car Insurance Quotes
Once you've notified your current insurer and reviewed state requirements, it's time to shop for new insurance quotes.
This is where you need car insurance quotes.
By gathering quotes from multiple companies, you can check if you're getting the best deal in your new location.
How do you get a car insurance quote?
Most insurance providers offer an online tool that lets you input your details and receive a quote instantly.
This will give you a good idea of what your premiums will look like in the new state.
What factors impact car insurance rates?
Your car insurance rates are determined by several factors, including:
- Your driving history
- Your car’s make, model, and year
- Your age and gender
- The amount of coverage you need
- Your new ZIP code and city
One of the easiest ways to find affordable coverage is by requesting auto insurance quotes from at least three different companies.
Step 4: Adjust Your Coverage Based on Your New Location
Moving means your risk profile changes, and so might your car insurance needs.
For example, if you're moving from a rural area to a city, your risk of accidents, theft, or vandalism could increase, which might warrant adding more comprehensive coverage.
On the flip side, if you're moving to an area with less traffic or lower crime rates, you might be able to reduce some coverage and save money on premiums.
Here are some common coverage options to consider:
Collision Coverage: This covers damage to your car from a collision with another vehicle or object.
Comprehensive Coverage: This covers damage to your car from non-collision incidents, like vandalism, theft, or natural disasters.
Uninsured/Underinsured Motorist Coverage: Protects you if you're involved in an accident with someone who has little or no insurance.
Step 5: Don’t Forget About the DMV
While you’re updating your car insurance, you’ll also need to update your vehicle registration and driver’s license.
In most states, you have 30 to 90 days to do this after moving.
Failure to update these records can lead to penalties or fines.
What do you need to do?
- Visit the local Department of Motor Vehicles (DMV) office in your new state.
- Provide proof of your new car insurance.
- Transfer your vehicle registration and driver's license to your new address.
Step 6: Cancel Your Old Policy (Once Your New One is Active)
It’s crucial not to cancel your old policy until your new one is in effect.
There should be no overlap between the two policies to avoid paying for coverage you no longer need.
Additionally, driving without insurance is illegal in most states, and it can lead to hefty fines.
Once your new best car insurance policy is active, contact your old provider to cancel your policy.
Be sure to ask for a written confirmation of the cancellation and any refund you may be entitled to.
Step 7: Keep Proof of Insurance in Your Car
When you move to a new state, you should always carry proof of your new insurance policy in your car.
Many states require drivers to show proof of insurance during traffic stops or after an accident.
This can usually be done using a physical card or an insurance app on your smartphone.
Make sure to update your insurance in the app as well.
Step 8: Explore Discount Opportunities
Once you’ve found affordable car insurance, don’t forget to ask about any potential discounts.
Many insurers offer discounts that can help lower your premiums, including:
Multi-policy discounts: If you bundle your car insurance with other types of coverage like home or renters insurance.
Safe driver discounts: If you’ve maintained a clean driving record.
Good student discounts: If you or a family member is a student with good grades.
Things to Remember
How long do you have to change your car insurance when you move? The timeline for updating your insurance depends on your state, but it typically ranges from 30 to 90 days.
Compare providers: Don’t just settle for your current insurer. Check car insurance companies in your new area to see if you can get a better deal.
Review your coverage regularly: Life changes, and so do your insurance needs. Even after you’ve completed your move, review your policy every year to make sure you’re not overpaying for coverage you don’t need.
Use a car insurance calculator to help you estimate how much your new insurance will cost based on your circumstances. This will ensure you get the best value for your money.
How Much Does it Cost to Change Your Car Insurance When You Move?
When you move, changing your car insurance isn't just about making a quick call to your insurer. It involves understanding how your premiums might change based on your new location, your driving habits, and even your car's make and model.
The big question, of course, is: How much is it going to cost me?
Well, let’s break it down for you.
How Much Can You Expect to Pay?
| Factor | Impact on Premium | Example |
|---|---|---|
| Moving to a high-risk area (urban/city) | Premium increases by 10% to 20% | Moving from a suburban neighborhood to downtown LA |
| Moving to a lower-risk area (rural/suburban) | Premium decreases by 5% to 10% | Moving from New York City to a small town in Pennsylvania |
| States with higher minimum coverage | 10% to 15% increase | Moving from a state with minimum liability to one with full coverage requirements |
| Switching from liability-only to full coverage | Premium increases by 20% to 40% | Adding comprehensive coverage on your vehicle |
| Adding additional coverage (e.g., PIP, uninsured motorist) | 10% to 25% increase | Adding uninsured motorist coverage in a new state |
| Vehicle type | Premium increase varies | High-end cars like a BMW or Audi typically incur higher premiums |
| Young driver (under 25) | Premium increases by 10% to 30% | Young drivers are considered high-risk and may see higher rates |
Additional Costs to Consider
Policy Cancellation Fees: Some insurers charge a $25 to $50 cancellation fee if you terminate your policy early.
Down Payment: Expect a $100 to $400 down payment when starting a new policy, depending on coverage.
Service Fees: Some insurers charge $10 to $25 for updating your policy details.
Refund from Old Policy: If you’ve paid for a full year but canceled halfway through, expect a pro-rated refund.
State-by-State Average Car Insurance Costs
| State | Average Annual Premium | Reasons for High/Low Rates |
|---|---|---|
| California | $1,500 - $2,000 | High risk in urban areas, traffic congestion |
| Texas | $1,200 - $1,500 | The mix of urban and rural areas, moderate risk |
| Florida | $2,000 - $2,500 | High risk of accidents, natural disasters |
| Michigan | $3,000 - $4,000 | No-fault insurance system, high premiums |
| New York | $1,500 - $3,000 | Heavy traffic, high theft rates |
| Ohio | $800 - $1,000 | Low accident rates, low-risk areas |
| Illinois | $1,100 - $1,500 | Urban congestion, moderate accident rates |
| Georgia | $1,200 - $1,600 | High population density, increased accident risk |
| North Carolina | $900 - $1,200 | Low accident rates, affordable premiums |
Factors That Impact the Cost of Changing Your Car Insurance
New Location (ZIP Code & City)
Moving to a city with more traffic or a higher crime rate can raise your premiums. Conversely, moving to a rural area can lower your costs.
State Insurance Requirements
Different states have different insurance requirements. States like Michigan, with a no-fault system, may have higher premiums than states like Ohio, which have more affordable options.
Type of Coverage
Upgrading to full coverage (collision and comprehensive) from basic liability can increase your premium by 20% to 40%.
Age & Driving History
If you're a young driver or have a history of accidents, expect higher rates. On the other hand, a clean driving record can help you secure discounts.
How Can You Save on Car Insurance When You Move? Compare Quotes: Make sure to get car insurance quotes from multiple providers. Rates can fluctuate between companies, and you might find a better deal by switching.
Bundle Your Policies: Many insurers offer discounts if you bundle your car insurance with other policies, like home or renters insurance. This can save you 5% to 25%.
Maintain a Clean Driving Record: If your move involves a change in driving habits, be sure to keep your driving record clean. Insurers often offer discounts for safe drivers or those with no accidents or tickets in the last few years.
Adjust Your Coverage: If you’re moving to a lower-risk area, reduce your coverage to save money. If your car is older and less valuable, it might not make sense to carry full coverage.
