Auto Insurance And Your Next Move: Faqs About New Policies
Are you moving to a new state? Do you need a new auto insurance policy? If this is your first move with a car, take a look at what you need to know about motor vehicle coverage, the legal limits, and your options.
Do You Need Auto Insurance Coverage?
Yes, you need auto insurance. Every state requires motor vehicle owners to carry a current insurance policy. But this doesn't mean the same requirements will apply in more than one state. The minimum coverage and types of coverage you need may change when you move across state lines. Common types of coverage include bodily injury liability and property damage liability. Some states also require residents to purchase uninsured or underinsured motorist policies.
How Much Coverage Do You Need?
Again, this depends on your state. It's possible you may need either more or less coverage in your new home state (compared to your old home state). The coverage minimums will include a dollar amount (such as $25,000) per person and per accident or incident.
Even though the state regulates the minimum auto coverage required, you can choose to purchase more or additional types of coverage. If you lease a car, you may also need to select more than just the state minimum coverage. Ask your insurance agent for information on lease and lender insurance requirements.
Can You Continue To Use the Same Auto Insurance After You Move?
What happens if your current policy meets or exceeds your new state's minimum insurance requirements? The answer to this question can get tricky. Before you assume that you can keep your old insurance when you move to a new state, contact a licensed insurance agent. Some states require residents to purchase policies from state-licensed carriers. If your insurer is not a state-licensed carrier, you will need to switch policies.
You will also need to make sure that your coverage does meet the new state's minimum standards. Coverage that may have exceeded one state's requirements could fall short in another area. This makes it important to discuss your existing coverage and address gaps in your insurance before you move to a new state.
When Should You Choose or Change Your Auto Coverage?
You will need to register your vehicle and get a new driver's license after moving to a new state. Each state requires new residents to complete these tasks within a specific number of days. It's likely that you will need to provide proof of insurance to register your vehicle. This means you will need to insure your car in the new state as soon as possible. Ideally, you should speak with a state-licensed insurance agent and secure a policy before or immediately after you move.