There may come a point when you decide to relocate to a new state. You might do so for a job, a romantic partner, or even just to experience life in a part of the country that appeals to you.
Moving to a new state could impact your auto insurance, though. So it’s important to loop your insurer in on your plans once they’re finalized.
Can you keep your auto insurance when you move to a new state?
Whether you’re able to keep your auto insurance after moving to a new state will depend on if your insurance company operates in the state you’re moving to. If it doesn’t, then you’ll have to shop for insurance with providers who serve that state.
Once you know with certainty that you’ll be moving out of state, contact your auto insurer and ask if it provides coverage in your new state. If so, you can ask for a rate quote if you know exactly where you’ll be living (keeping in mind that your costs could vary from one ZIP code to another).
But don’t assume that your car insurance premiums will stay the same in your new state if you stick with your current insurer. They might rise due to different factors, or they might go down.
Will moving to a new state result in higher auto insurance premiums?
This is one of those “it depends” situations. There are lots of factors that go into calculating auto insurance rates. Depending on how those shake out, your insurance costs might stay mostly the same, rise, or fall.
One factor that insurers use to set rates is the local crime rate. If it’s high, your premiums might rise.
Another factor insurers will consider is the claims history for that area. Some parts of the country have roads and infrastructure that may be more or less conducive to accidents. So that’s something that will go into setting your rate as well.
Also, different states have different requirements when it comes to things like minimum liability coverage. Your rates might change depending on the rules.
Also, your costs for auto insurance might go up if you move from an at-fault insurance state to a no-fault state. No-fault insurance means that if you’re in an accident, you can’t rely on the other driver’s insurance to pick up the tab for the damages at hand, even if the other driver caused the accident. Rather, you have to file a claim against your own insurance policy either way.
Because of this, no-fault insurance can be more expensive, because it means you’re filing a claim against your own policy every time an issue arises. This doesn’t mean that no-fault insurance is always more expensive, but it’s something to keep in mind if you’re moving to a no-fault state.
There are 12 states that maintain no-fault insurance laws:
- Florida
- Hawaii
- Kansas
- Kentucky
- Massachusetts
- Michigan
- Minnesota
- New Jersey
- New York
- North Dakota
- Pennsylvania
- Utah
All told, moving out of state has the potential to impact your auto insurance coverage and costs. Let your insurer know about your move to see what options you have. And even if your insurer offers coverage in your new state, it could still be a good idea to shop around for rates to make sure you don’t end up overpaying.
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