Planning a big move to a different state? You may be primarily focused on packing, getting new furniture, and finding the right apartment. But there’s one important detail you may forget during this transition: updating your auto insurance.
If you didn’t know this before, your address can play a significant role in how much you pay and whether your coverage is valid. Which may lead you to the question, what happens to my car insurance if I relocate to a different state? Here, we’ll go through why your new location may affect your coverage, how to change your address on your car insurance, and how Infinity Insurance Agency, Inc (IIA) can help you.
Why your address affects your auto insurance
Auto insurance rates can change from city to city and from state to state. This is because insurance companies typically use a combination of factors, like weather and traffic conditions, to determine your premium.
Some of these location-based factors may include:
- Local traffic congestion
- Accident rates in your area
- Crime rates (like car theft or vandalism)
- Weather-related risks (like flooding, hailstorms, or earthquakes)
So, moving from a suburban area to bustling city in a new state may cause your premium to increase or decrease, depending on your new location’s risk level.
Consequences of not updating your address
Ignoring this step might seem harmless, but not updating your address may lead to serious issues down the road. Here’s what could happen if you neglect this change:
- Coverage gaps: Each state, from California to New York, has its own minimum auto insurance requirements. If you move and your current policy does not meet your new state's minimum standards, your coverage may no longer be valid.
- Claim denials: If your insurance company finds that you live in a different state than what's listed on your policy, they may deny your claim.
- Policy cancellation: Some insurers may cancel your policy altogether if they discover you moved without notifying them.
- Legal and financial penalties: Most states typically require you to register your car and update your license within a specific timeframe after moving. Missing that window may lead to fines or potential license and registration suspension.
Differences between in-state and out-of-state moves
In-state moves
Even if you're just moving to a different city or ZIP code within the same state, it still can be important to update your address. Rates can vary between cities, suburbs, or rural areas, and your insurance company typically uses your location as one factor to calculate your premium.
Out-of-state moves
Since insurance laws vary by state, moving to a new state usually means you will have to purchase a new auto insurance policy. As stated previously, minimum coverage requirements in your new home state may differ from your current state, and your existing insurer may not even operate there. This is why it can be important to call your insurer and notify them about your move.
When to change your address
So, when exactly should you update your policy? Different states may have different rules on the deadline for updating your address. Most states typically require you to notify your insurance company within 30 days, but doing it as early as you can may prevent financial or legal issues.
To make the change, you may need to provide a few things to your insurance company, like your new address and updated license. If you’re moving states soon, you can contact one of our friendly, experienced agents at IIA. We can help you navigate your move and your insurance journey, even if you need to purchase a brand-new policy.
Final thoughts on making the big move
Moving is a major life event and figuring out what may happen with your car insurance can distract from the excitement. Updating your address if you’re moving in or out of the state is not only a smart move but may prevent you from financial penalties in the future.
By updating your address in a timely fashion, you may be able to:
- Avoid lapses in coverage
- Prevent claim issues
- Stay compliant with state laws
Ready to update your address or purchase a new policy? Call IIA today at 1-855-478-3705 or visit our website to get a free personalized quote online. Our Spanish-bilingual agents can help you find coverage that matches your needs and budget.