How to Manage Your Car Insurance During a Move – Generally, moving is a milestone event in the life of every driver, but it comes with different tasks and challenges. While this is on, one thing you are always required to respond to on time is your car insurance update. Whether you’re moving locally or long-distance, understanding how to handle your car insurance during the transition is crucial.
Depending on what state you are moving to, whether or not you need to change your car insurance is determined. Moving out of state most of the time involves several moving parts, such as packing belongings, scheduling movers, and changing addresses. While planning a move, it is important to include your car insurance on your to-do list. This is to keep you informed about your car insurance management. This write-up contains insights on how to manage your car insurance during a move.
Do I Have to Change My Car Insurance When I Move?
Each time you move away from your old location. It is important to inform your car insurance company to update your policy. Irrespective of how far or close you move from your old residence. It can cause a change in your insurance premium. This is because your car insurance company determines your insurance rates based on the risk at your location.
Moving can either increase or decrease your premiums. For instance, if you move from a high-crime location to a low-crime location, your car insurance premiums may decrease. If you do otherwise, your car insurance premiums will likely increase. However, to avoid getting higher premiums when you move. You may consider changing your car insurance company, not a new one, after you move.
When Should I Change My Car Insurance During a Move?
Managing your car insurance during a move is very important to do. Unfortunately, only a limited amount of time is offered for drivers to change their car insurance during a move. Most states have rules in different locations where drivers are required to provide their licenses and registration between one and three months after setting up a new home. This means drivers are also required to update their car insurance to reach the state-mandated requirements. If you do not know the specific car insurance requirement of your new location, check with the state’s Department of Motor Vehicles.
Should I Get New Car Insurance Before I Register My Car in a New State?
In most states, you need to provide proof of your car insurance before you register your vehicle in the new state. For this reason, you need to begin your search for a new car insurance policy as fast as possible after moving to the new location. Generally, the state offers between one and three months for drivers to register their vehicles. This means you have enough time to compare different lenders and purchase a policy.
How to Change Your Car Insurance During a Move
After moving, you need to take the following steps to manage your car insurance:
Gather insurance quotes from different car insurers:
Although your car insurance company may offer coverage even while you are in a new location, you are still likely to face higher insurance rates. To avoid higher insurance rates, put together insurance quotes from different car insurance companies in your new state and compare them. Even if you are moving within your current location, it may still be a good idea to change insurers and compare several insurance companies.
Understand Your Car Insurance Company’s Cancellation Terms.
Some car insurance companies inflict a termination fee on the policy of a driver if they ever cancel their policy before the end of the policy term. This is, however, not common with most insurance companies. Insurance agents generally do not advise drivers to change their policies or insurers to a new one in the new state just to avoid cancellation fees.
Verify Your Policy’s Resume Date:
You need to make sure you do not get any lapse in your insurance coverage between policies. While this is the state law for insurance coverage, it exposes you to a great deal of risk. To avoid this, ensure your new insurance policy resumes on the same day your previous policy is canceled.
Cancel Your Previous Insurance Policy:
Stay aware that some car insurance companies require drivers to write a notice of cancellation. It is important to make sure you are not billed twice for car insurance after your new policy is activated.
Are My Insurance Rates Affected During a Move?
Yes, your insurance rates can be affected by moving, irrespective of location. In most states, car insurance companies make use of your ZIP code and other factors to determine rates and premium costs. Some other factors, like accident prevalence, vehicle theft, population density, and crime rates, can affect your car insurance rates.