Do you need to switch auto insurance providers or policies when you move out of state? If you're planning a major move, take a look at what you need to know about insurance, state requirements, and your options.
Do You Need Insurance?
Yes, you will need auto coverage. Each state has its own minimum insurance laws that drivers must follow to legally stay on the road. This means you will need insurance—but it's possible that the minimum coverage could vary from what you have right now.
You will need liability and bodily injury coverage. Visit your new state's insurance commissioner's website or contact a knowledgeable insurance company for more information on the specific minimums. Some drivers also choose to purchase comprehensive coverage, collision coverage, or other types of insurance.
While comprehensive and collision coverage can help to pay for many different types of damage (including damage caused by a collision with a tree/object, vandalism, or fire), it isn't a legal requirement, according to the National Association of Insurance Commissioners (NAIC).
Do You Need A New Policy Before You Move?
Again, insurance laws vary by state. You can choose to select a new policy before you move. But you may also have a month or more (depending on the state's laws and requirements) to find a new policy. An in-state auto insurance company, your state's insurance commissioner's office, and your state's department of motor vehicles can provide you with a timeline.
Who Should You Buy A New Policy From?
Start with an auto insurance provider that works specifically in your new state. You don't have to choose one company immediately. You may want to explore the coverage and price options available to drivers in the area and get a few different auto insurance quotes.
Which Policy Should You Choose?
The first step is to find a policy that satisfies the minimum coverage requirements. If price is a major factor, you may need to stick with the minimum coverage. But if you want to avoid unnecessary expenses after an accident, wild weather, or as a result of theft/vandalism, you will need to explore additional types of coverage.
Along with the types of coverage, you will also need to choose a deductible. The deductible is the amount of money you pay before the insurance takes over. Unlike health insurance (which has an annual deductible), auto insurance deductibles are per-incident dollar amounts. A higher per-incident deductible usually comes with a lower monthly or annual premium (the cost of the insurance).
A move can get expensive. If you feel that your post-move budget is smaller than what you feel comfortable with, you could choose a higher deductible policy. But this won't always make financial sense. Even though a high deductible/low premium policy may sound like a money-saving idea, this type of coverage will cost you more in accident or incident-related out-of-pocket expenses.
For more information about auto insurance, contact a local provider.
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