There are many things to consider when moving home. Many people get stressed because of the move even months before. You have many things to organize, before, during and after the move. Your auto insurance is one of those things you need to put in order along with change of zip code. Implications of your move can be a lot different between moving couple of blocks and moving to another state in terms of vehicle insurance.
- How a Move Can Affect Auto Insurance
Following a list of things to do will make sure that you don’t forget an important task. Here are some of the changes you may need to make on your automobile insurance during moving.
Weeks before Moving Day
When you have given notice to your current landlord, chosen your new address and made the arrangements, it is time to talk to your auto insurer. Call them to discuss following points.
Coverage: A new home address may require changes on your policy. If you are moving to a different state, you are required to change your policy at some stage in the near future. Your current insurer may still be able to help you if they are underwriting policies in your new state. If you don’t need a totally new policy few adjustments may be enough. Motorists add or drop coverage all the time as their circumstances changes.
Drivers and Cars to Be Insured: People move out of parents’ home, move in with a partner or separate. So, move can affect the drivers and cars to be insured. You should discuss this with your insurer and see your options in advance. Perhaps, you may want to get several quotes and see if a new policy and insurer is going to serve your needs better. Maybe you want a joint or multiple cars policy now that you are getting married. You need to take all these into account carefully.
Annual Mileage: You may be moving closer to work and children’s school that you will be driving fewer miles now. You may even be making a career change and starting to work from home. This will take away the commute and reduce your mileage a lot. The opposite is possible as well that you are now area manager in your firm and need to travel a lot from one location to the other. Let your insurer know what is going to happen and work out a new arrangement.
New Home: If you are now becoming a home owner let your insurer know. Many companies offer homeowners auto insurance savings. This may be an opportunity to save further by bundling home and auto insurance with a competitive insurer.
What Happens to Car Insurance when Moving out of State?: You need to know how long you have to change vehicle registration, plates and driver license so that you can arrange coverage accordingly. Find out if you need to take any test for the changes to be granted to you. One question people are quite keen to find out is what happens to their traffic tickets and points when they move to another state? You probably shouldn’t expect to have a clean start in your new state since your records are likely to follow you. States share motor vehicle records these days.
About Moving the Car: Have you decided how you are going to take the car across to your new address? If your vehicle is shipped or transported by third parties, make sure that they insure it during transportation. Also, ask how your current insurer covers you in this process. Some companies do insure vehicles on transport. If you are going to drive, your current insurer will probably provide coverage across state lines.
Days before Moving Day
Time to Change Address: It is best to keep your address as the one you are living currently. So, you should change your address with your insurer several days before or after moving. It would be better to do it just before you start moving. This way, you won’t miss any communications from your insurer.
Get New Quotes with New Address: Do you know how is car insurance calculated in the state you move in because each state allows and prohibits certain factors to be used in premium calculations? For example, California doesn’t allow credit score to be used as a factor in premium calculations. That is why it is always wise to get a few car insurance quotes from different companies when you move to a new state. Even if you move from one part of a city to another you should always get alternative quotes when you move as prices can change a lot from one zip code to another.
Set up the Switch If You are Changing Companies (or Policies): Confirm when you want your new policy to start and the old one to end. You should set this to happen at the same time to avoid any coverage gaps.
- Moving Related Auto Insurance Factors
Zip Codes and Vehicle Insurance Prices
Population density, number and size of claims, traffic congestion and auto crimes are some of the factors that are coded on a zip code. By looking at your zip code insurers can tell the possible risks with your move. This will mean changes on your car insurance rates. Also, state car insurance regulations affect the rates since each state have own insurance laws and minimum requirements.
Uninsured Drivers Figure
If you are moving to an area with higher numbers of uninsured drivers, this will increase the risks. If you get hit by an uninsured driver your insurer will need to pay. And having too many of them around will mean that your insurer will be taking a larger risk.
Urban vs. Rural Car Insurance Rates
City auto insurance is usually more expensive because of higher crime, traffic and accidents. This is translated as high risks by auto insurers and high premiums for policyholders. So, moving from rural area to city would mean increase in premiums. And the opposite is true as well.
Make an Easy Auto Insurance Move
Moving can be stressful. However, it is best to get organized instead of get stressed. As you tick away items on your checklist you can see that you are leaving one less item to worry about.