How to Adjust Your Auto Insurance During a Move

Moving across town may not impact your auto insurance much, but a significant move—such as moving to a different state—could have a significant impact on your policy needs and what you pay. If you are planning a move, what should you look for when it comes to car insurance changes? Before you pack your bags, it helps to know what's expected of you as a driver in a new location.

Will Your Existing Auto Insurance Policy Cover Your Move?

In most cases, insurers provide coverage on a state-by-state basis. You are covered in your state, of course. If you travel across the country on a trip, you will maintain insurance coverage in most cases. However, where you are moving, you generally have between 30 and 90 days to make a policy switch. If your existing carrier provides service in the new state, the change may just be a matter of updating the policy. You may be able to keep your current rates. In other cases, you may need a new insurance policy altogether.

Laws regarding auto insurance change from one state to the next. The amount of liability coverage you need, for example, may be different in the state you move to. You may be required to carry specific types of coverage in one area and not in the other. Your insurance agent can help you to make these adjustments.

Shopping for a New Auto Insurance Policy is Important

Don't assume your insurance company is going to provide you with the best rate available, though. Rates change significantly from one state to the next for various reasons including:

• The size of the city and how "urban" it is
• The amount and type of accidents occurring there
• The average cost of accidents in the new area

For these reasons, you'll always want to obtain multiple quotes from an independent insurance agent if you are moving so you can compare your options. Doing so can help to save you money while ensuring you have state-approved coverage. Consider your vehicle, your new risks, bundling your other insurance needs with auto insurance and any discounts you may qualify for in your new location. In many cases, you can find more affordable auto insurance plans available to meet your needs.