Your car insurance can either go up or down when you move, depending on several factors. Even if you’re moving to a nearby town of another country, it is important to understand the effect of your move on the cost of your car insurance policy.
Yes, your car insurance is likely to increase depending on where you move. The new location can negatively impact your insurance rate.
There are other factors that could also make your car insurance premiums go up, such as traffic factors and crime rates. When moving to another address, it is important to know the rules that guide the car insurance policy in the new location.
Reasons Why Your Car Insurance May Go Up
Aside from you moving to a new place, there are other potential reasons why the cost of your car insurance can go up. Some of which include:
- History of claim.
- Traffic violations.
- Addition of another driver to your policy.
- An increase in state fees.
- Extra coverage.
These are just the primary reasons your car insurance is likely to go up. Aging drivers should also expect to be charged higher premiums. If you need further clarity on why the cost of your car insurance is on the high side, you can reach out to your agent for a detailed explanation.
How to Update Your Car Insurance When Moving to a New Location
While car insurance requirements differ in every state, individuals are still required to purchase a new insurance policy. We have helped to curate steps on how to update your car insurance when moving out of your current state:
• Contact your insurance company
The first thing to do when moving to another state is to inform your current insurance company about your decision. You can even ask if they offer car insurance in the new place you’re migrating to. If they don’t have auto insurance active in the new place, you can reach out to an agent to recommend car insurance companies for you.
• Understand the car insurance requirement in the new state
Since the insurance law and requirements are not the same in all states, it is important to check out the law that guides car insurance in your new state. There might be some additional coverage you did not have in your old car insurance policy that can be beneficial to you. In essence, take time to understand the requirement in your new location and try to adjust to it.
• Get a quote
Because it is necessary to get a new car insurance policy when moving to a new state, start making plans on how to get a new quote. Perhaps your current insurance provider does not offer car insurance policies in your new location; you can contact other insurers and get quotes from them. To get the best car insurance rate, compare different quotes and coverage options.
• Purchase a new car insurance policy
Once you’ve gotten a quote from at least three to four insurance companies and have selected the one to work with, proceed with the payment of a new insurance policy. Ensure you review the details of your car insurance to know what it covers and what it does not.
• Cancel the old policy
After all, said and done, reach out to your former insurance company and ask for the cancellation of your old policy.
How to Cut Down on Insurance Cost
We understand that car insurance can become expensive due to a myriad of factors; hence, we have helped to curate ways by which you can cut down your insurance cost. Follow the tips highlighted below:
- Evaluate Your Coverage: Most often than not, additional coverage automatically adds to your insurance cost. If there are certain coverage that you do not necessarily need, you can ask your insurance provider to remove it from your policy. You can also consider changing your coverage if you no longer have teen drivers in your house. This will help to reduce the cost of your car insurance.
- Check for Discounts: So many insurance companies offer a variety of discount options to policyholders. There may be discounts provided by your insurer that you are eligible for, but because you overlooked them, your insurance rate is high. If there are discounts you are eligible to receive, make use of them.
- Shop for Quotes: When moving to another place, your focus should be on getting a car insurance policy that aligns with your budget. You can get lower car insurance rates by shopping around. This would enable you to compare quotes and choose the best option.
- Raise Your Deductibles: Another way to cut down on your insurance costs is by increasing your deductibles. Typically, deductibles help reduce the cost of car insurance. Hence, your car insurance can potentially be reduced by raising your deductibles.
FAQs
Can I have car insurance in two different states?
No, it is not possible to have car insurance in two different states. Most insurance companies require you to cancel your old policy when purchasing a new one. But you can have two policies if you intend to insure two different cars that are not in the same state.
What should I do if my move is temporary?
You still need to inform your insurance company, even if you’re moving temporarily. They are in the best position to provide you with guidelines that suit your situation. Depending on the state law and requirements in the new place you are moving to, you may be allowed to keep the coverage on your old policy.
Do I have to change my car insurance when moving?
Yes, if your current insurance provider does not offer a car insurance policy in your new location, you are required to get a new policy. However, if you stay in the same state, you do not have to change your insurance company.
