Moving soon? Here’s how to manage your car insurance transition
Moving requires a lot of organization and planning. Along with your many other packing tasks and accumulating good moving boxes, you should add updating your car insurance to your to-do list.
Car insurance rates are based on a variety of factors, and where you live is an important one—so, right off the bat, one reason you’ll need to update your insurance is that where you live has an impact on your premium rates.
Ideally, you want to start the process of adjusting your car insurance before you actually move in order to have the easiest possible transition of your insurance coverage. If you start the process early, even before you’ve settled on a place to live, you will have the most control over the potential for changing premium rates.
In-state versus out-of-state moves
Insurance is regulated at the state level. State regulators set the rules for how insurers can operate in each state, shaping how rates are set and the process to change them, along with establishing rules on what factors can and cannot be used when determining premiums. For instance, some states do not allow insurers to use an individual’s credit rating as a factor.
Other variables include crime rates and traffic density, common to urban areas, and the frequency of wildlife collisions and traveling over long distances, which are more common to rural areas. Some states require drivers to carry more personal injury coverage; some require more uninsured or underinsured motorist coverage. The impact of some natural disasters—particularly hail, which can destroy a car—will also likely factor into your rates.
This dramatic variation from state to state, along with differences in risks, means that not all insurers operate in every state. So, if you are moving to another state, your current carrier may not be available in your new location.
Out of state moves
These differences also mean that even if your current insurer is available in your new state of residence, your coverage options might be different. This could affect your rates—or, it could no longer be the right coverage for your situation.
Either way, it’s important to investigate the differences sooner rather than later—and you should never assume that it is guaranteed that you’ll be able to stick with the same insurance company if you are moving out of state.
In-state moves
An in-state move makes it more likely that you’ll be able to remain with your carrier. You are still required to update your information and provide your new address to your insurance company—and your rates could go up or down.
If your new neighborhood has a lower incidence of accidents and a lower crime rate, your premiums could be lower. On the other hand, if your move makes your daily commute longer your rates could go up.
Another good thing about starting this process early—if you think you know where you want to move to, you can call your insurance company and talk to them about how relocating might impact your car insurance rates. Discovering that you might be paying substantially higher premiums before you sign a lease or mortgage means that you could potentially adjust your search area.
Do I get a grace period to change my address?
If you are moving within a state, many insurers offer a grace period to update your address. The length of this grace period will likely vary between one insurer and another, so it’s important to ask rather than assume. Get your information updated as soon as possible after your move.
Don’t delay updating your address because you think your rates will likely go up—that is called rate evasion.
What is rate evasion?
Rate evasion is a form of insurance fraud, and can really get you in a lot of trouble with your insurer. If you don’t tell your insurer that you’ve moved in an effort to avoid a premium increase, that’s rate evasion.
Providing false information to your insurer about where you live, where your vehicle is housed, or misrepresenting your mileage—these are all examples of fraud, and if discovered your insurer will likely drop you.
It will also be harder and more expensive for you to get coverage in the future. The reason for being dropped will be recorded and that information is made available to other insurers when you go to get insurance.
Bundled insurance
If you have bundled insurance, with your home and auto coverage under the same insurer, it is really important to talk to your insurance company before you move to another state.
When you move, your old policies are canceled and you have entirely new policies written that conform to your new location’s insurance regulations and requirements. In some situations, that might mean very different policies.
Sometimes, an insurer that writes policies for both home and auto in one state may only provide one or the other in your new state, which means you might lose your bundled rate. Starting your research as soon as you know you’ll be moving is advised, so you can find the best coverage for your situation.
Talk to the experts
The simplest way to get all of your questions answered about managing car insurance policies when you move is to call the experts at Rate Insurance.
Whether you’re looking at a move across town or from the East Coast to the West Coast, they can help you to navigate the insurance process. With access to hundreds of insurance companies, they will find the right car insurance policy for your changed situation and needs.
