Moving to Another City - How Auto Insurance Works?

Krishtina D'Silva Posted on: 2022-09-20 18:00:00 Viewer: 4,091 Comments: 0 Country: United States City: New York

Moving to Another City - How Auto Insurance Works?

The issue that troubles many people is what to do with their current automobile insurance when moving to another city. The dilemma of whether your auto insurance in a different state will remain valid or not is something that every automobile owner goes through. A few questions that come to everyone's mind while relocating are – 'is car insurance city or state-specific? 'Will my auto insurance cover me in another city? Or 'can I use my car insurance in another city?

Do you have to change car insurance when you move?

Your car insurance policy should be updated whenever you move to another city. If you move within your current ZIP code, you must contact your current automobile insurance provider and get your address updated. Updating your auto insurance is critical if you move to a new state. Moving across state lines means you must comply with your new state’s laws. Your current car insurance company might sell policies in your new state, but you will still need a new approach. You will need to go through the process of switching carriers to a car insurance company licensed to operate in your new area if your current insurer is not authorized to write policies in your new state. Car insurers set rates based on risk, and the risk of insuring your vehicle can change when you move to a new city.

When should you switch your car insurance while moving?

You only have a limited period in which you have to manage your car insurance while moving. Specific requirements for auto insurance can be found by checking the state’s Department of Insurance of Motor Vehicles. Different forms have specific regulations required in switching over your registration within the initial three months of setting up a new residency, which means also updating your insurance to meet local requirements. Ask your insurer about its specific guidelines, as the insurance company may require you to update your address sooner.

These steps could help you to switch your car insurance when you move seamlessly:

● Take quotes from multiple insurers

Even if you’re current car insurance company provides coverage in your new place, there is no guarantee that it will offer the best rates, even if it was the cheapest at your old address. Exploring multiple insurers would help you.

● Understand your company’s cancellation terms

Some companies charge a termination fee if you cancel your policy before the end of your term. However, insurance agents do not advise you to wait to change your approach in your new state to avoid the cancellation fee. Getting your policy in your new form to satisfy your residential state’s laws is vital to your financial well-being.

● Confirm your policy’s start date

Ensure your auto insurance policy begins on the date you cancel your old one to avoid a lapse or overlap of coverage. You want to make sure you do not have any lapses in coverage between policies; this is not only against the law in states that require car insurance coverage but also exposes you to a great deal of risk.

● Cancel your old insurance policy

Remember that some insurers require written notice of cancellation, so check that you are not double-billed for insurance after your new policy kicks in.

Does moving affect your car insurance rate?

Moving even within the same city can affect your car insurance rate. Auto insurers mostly use your ZIP code and other factors to determine car insurance rates. Factors such as accident frequency, population density, vehicle theft frequency and crime rates change by changing ZIP codes, affecting insurance rates. The per year average car insurance premium cost varies significantly among various states. Cities in the same state often have vastly different rates as well. Because car insurance rates can be affected by the factors such as population density and crime in a particular region, two cities in the same state often have vastly different average premiums. Remember that if car insurance is costly in your ZIP code, there might still be ways to save on your premium. Many of the best car insurance providers offer discounts that could help you lower your premium. When researching companies, you may find out which deals apply to you.

What if I’m moving to a “no-fault state”?

No-fault insurance, often known as personal injury protection, is a type of auto insurance that covers any medical bills, income losses, and funeral expenses due to a car accident, regardless of whose fault it was (yours or the other driver's). If you're moving to a no-fault state, you must confirm from the auto insurance agent whether a change in your car insurance coverage is required.


An auto insurance cover that works for one area may not be relevant to another. Hence when you relocate, you should focus on your current insurance needs and upgrade your car insurance accordingly. The above guidelines mentioned in this article will assist you in handling your car insurance when relocating. However, the terms and conditions of the insurance policy and the coverage depend on the insurance provider; hence it is advisable to inform them about the move in advance to prevent confusion during the final hour.

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