Should You Switch Car Insurance If You Move?

Car insurance is generally calculated by where you live. Your insurance carrier figures your premium according to your general location. For example, if you live in a small rural area without much traffic, your premium will be lower, because there is less risk of an accident. If you live in a busy, urban area, chances are your insurance rates will be higher.

If your zip code is a high crime area, where car theft or vandalism is prevalent, your insurance policy may be extremely high. When you change your address, you may not necessarily need to switch to another insurance company, but you do have to notify your current carrier. Your insurance policy may increase or decrease, depending on what your new zip code tells them.

Out-of-State Moves and Car Insurance

If you move out of state, you may have no choice but to switch insurance carriers. Most big named companies are nation wide, but there are still a few that may not service the area you are moving to.

Even if you do not switch the provider, you need to notify your insurance company and have them find you a local agent in your new area. You may have to adjust the limits that you carry as well, due to state regulations. Insurance amounts are governed by each state, so you will have to be sure that your policy covers the new states requirements.

If the move is only temporary, as for a job, or to attend school, you should talk with your current agent about the best way to handle the situation. Your current insurance may be fine, but you do have to inform the insurance company that the insured vehicle will be in another state for a temporary amount of time.

In-State Moves and Car Insurance

Moving across town is not a reason to change carriers, because it probably will not affect your insurance rates by very much, if at all. If you are moving clear to the other end of a state, you may wish to contact agents in that area and get a quote from them. You may find that the new area you are moving to has cheaper rates from certain insurance providers.

You also run the risk of finding out your premiums are going to be higher. Moving from a rural area to a larger city will increase your rates, so checking with companies already in the new area may be a way to keep your car insurance at a manageable price.

The DMV Keeps Track of Your Car's Registration

The Department of Motor Vehicles must also be notified when you move. Your vehicles have to have the same address on them for the DMV and your insurance carrier. Depending on the state, you may have up to 90 days to register your new address with the DMV, or risk being fined if you are stopped. If you have an accident before the addresses match, you could be in for a fight on the claim, simply because the car was not registered to the same address the insurance was. It is very important that the insurance company and the DMV have the same address.

Sources:

Car Insurance Guide Book

Department of Motor Vehicles

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