Do You Need to Switch Car Insurance Companies If You Move?

Switching car insurance carriers may or may not be necessary depending on your insurance company, where, how far you move, and if your move is temporary. In all cases, however, you should notify your car insurance company of your actual move. Here are some key points to keep in mind when you move:

1. Local versus national car insurance carriers. If your car insurance carrier only covers your local region or state and you move out of that local region or state, you will probably need to find a new insurance company. If, however, you car insurance carrier is national, the locality or state you move to will probably be covered. In some cases, local insurance carriers may still cover your vehicles even if you move out-of-state but the level of customer service will not be as good (e.g., long waiting period for agent visit). In such cases, you may wish to switch insurance carriers to maintain the same level of customer service and insurance claim turnaround.

2. Location-specific increases/decreases. Depending on where you move to, your car insurance premium may increase or decrease. For example, if you move from a relatively safe rural area to a crime-infested city, your car insurance rate will probably increase significantly. Alternately, if you move away from a big city and/or start parking your car in your own garage, your rate will probably decrease.

3. Temporary moves. You may need to move temporarily to another city and/or state in order to serve in the military, go to school or care for a parent/relative. You should still inform your car insurance company of your move; however, in most cases, you will not need to switch car insurance carriers.

4. State-mandated minimum/maximum coverage. Some states have different rules regarding minimum/maximum insurance coverage on a vehicle. This is a major reason why you should inform your car insurance company if you move to a different state. Depending on state-mandated minimum/maximum car insurance coverage, your insurance premium may decrease/increase.

5. Agent changes. You may be assigned to a different insurance agent once you notify your insurance carrier of your move. The new insurance agent will probably be more local to your area and better able to address questions about your insurance premiums.

6. Don't forget the DMV. You should inform both your car insurance carrier and the DMV of your move because both your car insurance policy and your vehicle's registration need to carry the same address. Most states provide a grace period of 15-60 days from the time you move to the time you need to have vehicle registration completed; other states require immediate vehicle registration.