Does car insurance change when you move?

Q: Do you have to notify the DMV when you move out of state?

If you plan to move out of state, you may need to contact the DMV . Some states have requirements; in California, you need to report to the DMV within 10 days of leaving, while in Maryland, you must return your vehicle’s license plates to the state’s motor vehicle administration department when you leave. Many states have similar requirements, but others, such as Arizona and Texas, do not.

Do you have to change car insurance when you move states?

When you move to a new state, you must get a policy there. You may be able to stay with the same company, but it will need to issue a policy that meets the legal requirements and is active in the new state.

It’s possible that your current insurer doesn’t sell insurance in the new state. Unless you find a policy with a new carrierAn insurance carrier is the company that provides your car insurance policy and pays claims., you might not have coverage at all.

In addition, if you move to a new state, you might find that the minimum required amount of coverage is either more or less than what you had to carry in your old state.

“Auto insurance rules can vary quite a bit from one state to another,” Worden says.

For example, in California, liability coverage minimums are:

$30,000 for injury/death to one person
$60,000 for injury/death to more than one person
$15,000 for damage to property

Clear across the country in Virginia, the minimums are different:

$50,000 for injury/death to one person
$100,000 for injury/death to more than one person
$25,000 for damage to property

Some states also require you to carry certain forms of coverage that others do not.

If you live in Georgia, you are not required to carry personal injury protection insurance. Move across the border to Florida, however, and you must purchase this coverage.

“It’s always smart to check in with your insurance provider to make sure you're fully covered wherever you’re living,” Worden says.

Changes from state to state will affect your car insurance rates.

It’s also possible that even if your current insurer does sell policies in your new hometown, it might not offer the best deal. For this reason, it pays to shop around when you move.

Does car insurance change when you move temporarily?

You need to inform your insurance company if you plan to move, even for just a short period — like three to six months — before moving back to your original home, according to Worden.

“Even if it’s just a temporary move, it’s important to let your insurance company know as soon as you change addresses,” he says.

If you are staying within the same state, your insurer may be able to simply update your policy with your temporary address.

“But if you're moving out of state, even for a short time, you might need a brand-new policy that meets that state’s specific coverage requirements,” Worden says.

Does moving impact my insurance rate?

Where you live can have a big impact on the rates you pay.

"Your address plays a big role in determining your rate, so a new location could cause it to go up or down," Worden says.

For example, city dwellers are at greater risk of vandalism, theft, and accidents. To account for this risk, insurers charge higher premiums to drivers in these areas.

If you move to a smaller town or a rural area, rates are likely to fall because there is a lower risk of claims related to such damages.

Rates can also differ from neighborhood to neighborhood. Living on a block where crime is high will likely result in paying higher car insurance rates.

You might pay more if you move to an area where frequent and destructive storms are commonplace. On the other hand, your rate might fall if your move results in a shorter commute to work.

Other factors that can impact your rates include your area's:

Cost and frequency of lawsuits
Cost of medical care
Cost of car repairs
Incidence of car insurance fraud

Our state rate comparison tool can help you estimate how much you might pay in a given ZIP code or state.

How to switch car insurance to another state

You will need a new insurance policy when you move to a new state. That is true even if you stick with the same car insurer. Follow these steps:

If you plan to stick with your current insurer, contact the company and explain that you plan to move. Confirm with the insurer that it offers policies in your new hometown.
Ask your agent or insurance company representative how insurance requirements differ in your new state. Depending on where you are relocating, you may need to buy higher liability coverage.
Ask about additional coverage you might also be required to buy, such as:
- Medical payments coverage
- Personal injury protection
- Underinsured/uninsured motorist coverage
Make sure you purchase at least the minimum amount of required coverage, but keep in mind that it is often prudent to buy even more coverage than the minimum.
Once you have determined the types of insurance you need and the amount of coverage that is right, you should receive a quote. You can then purchase a policy from your insurer or shop around to see if you can get a better deal.
If your current insurer does not offer policies in your new state, you must secure coverage with another provider. Gathering quotes from several insurers is the best way to find the right coverage at a great price.
If you find a policy with a new insurance company, make sure to cancel coverage with your old insurance company.

How long do you have to change your car insurance when you move?

Every state has its own requirements for how long you have to change your car insurance and complete other related steps like registering your car and getting new plates. Typically, the period is one to three months, but learning your new state's regulations is essential. Failure to abide by these rules could result in fines.

For example, in Colorado, you have 90 days to register your vehicle, including providing proof of car insurance.

In Minnesota, you have 60 days to do this. In Alabama, it’s 30 days.

“Most states give you about 30 days to update things like your driver’s license and vehicle registration after a move,” Worden says. “But when it comes to your car insurance, it’s best not to wait. Reach out to your insurance company as soon as you can to let them know you've moved.”

If you are staying in the same state, you might not need a whole new policy, “but your insurer still needs to update your information,” Worden says.

FAQ: Car insurance when you move

Do you have to notify the DMV when you move out of state?

If you plan to move out of state, you may need to contact the DMV. Some states have requirements; in California, you need to report to the DMV within 10 days of leaving, while in Maryland, you must return your vehicle’s license plates to the state’s motor vehicle administration department when you leave. Many states have similar requirements, but others, such as Arizona and Texas, do not.

What happens if I don't change my address on my car insurance?

Keeping your information current is part of your responsibility as a policyholder when you move, or you could face consequences, including loss of coverage.

"If your insurer doesn’t have your correct address, it could be seen as a misrepresentation, and that might lead to denied claims or even your policy being canceled or not renewed," he says.

Does car insurance cover me when I am between addresses?

Generally, a car insurance policy issued in the U.S. will cover you in all 50 states and Canada. So, if you are temporarily between addresses, your policy should cover you.

However, it always makes sense to contact your insurer to make sure your coverage will be valid as you move from one place to another.

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