There are many things to consider when you need to settle in a new location. Many people get stressed because of it even months before. You have many things to organize, before, during and after. Auto insurance is one of those things you need to put in order along with change of zip code. Implications of a move can be a lot different between it being just a couple of blocks away or to another state.
- How Relocation Can Affect car Insurance
Following a list of things to do will make sure that you don’t forget an important task. Here are some of the adjustments you may need to make on a policy in this process.
Weeks before Moving Day
It is time to talk to the car insurer once you have chosen the address, given notice to the current landlord and made the arrangements. Call them to discuss following points.
Coverage: A new address may require alterations to a policy. If you are relocating to a different state, you are required to replace it at some stage in the near future to reflect the liability requirements of this jurisdiction. The current carrier may still be able to help you if they are underwriting there. If you don’t need a totally new one 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, in with a partner or separate. So, it can affect the drivers and cars to be covered. You should discuss this with the agent and see the options in advance. Perhaps, you may want to get several quotes and see if a switch is going to serve your needs better. Maybe you want a joint or multi-car policy now that you are getting married. You need to take all these into account carefully.
Annual Mileage: You may be getting 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 yearly mileage a lot. The opposite is possible as well that you are now area manager and need to travel a lot from one premises to another. Be clear about what is going to happen and work out the best solutions from now on.
New Home: If you are now becoming a homeowner you may want to take advantage of it as many companies offer discounts. This may be an opportunity to save further by bundling. Renters can bundle too but they may get less out of it.
What Happens to Auto Policies 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 them 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 there since records are likely to follow you. They share motor vehicle records these days.
About Moving the Car: Have you decided how you are going to take the car across? If it is shipped or transported by third parties, make sure that they insure it during transportation. Also, ask how the existing policy protects you in this process. Some companies do cover vehicles on transport. If you are going to drive, you normally don’t have much to worry about. You might even squeeze a road trip out of it if you plan ahead.
Days before the Shipment Date
Time to Change Address: It is best to keep it as the one you are living currently. So, several days before or after would be fine once all decided. It would be better to do it just before the removal company arrives. This way, you won’t miss any communications from the agent.
Get Quotes with New Zip Code: Each jurisdiction allows and prohibits certain factors to be used in premium calculations that can make a big difference on the final price. For example, California doesn’t allow credit score to be used as a factor in calculations. That is why it is always wise not to assume anything and just get a few automobile insurance quotes. Even if you go across the city you should always check alternatives as the rates can differ a lot from one zip code to another.
Set up the Switch: If it is what you are doing, confirm when you want the 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. And you don’t need to pay twice for even a minute this way.
- Relocation Related Auto Insurance Factors
Zip Codes and Rates
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 it carriers can tell the possible risks you will face. This may mean that the premium will go up or down. Also, state regulations affect the rates since each have own laws and minimum requirements.
Uninsured Drivers Figure
If you are now going to live in an area with higher numbers of them, this will increase the risks. If you get hit by one of them your policy will have to pay and that is probably factored in. Also, you might want to consider additional protection against them.
Urban vs. Rural Vehicle Insurance Prices
Rates are usually more expensive in cities because of higher crime, traffic and accidents. This is translated as high-risk for carriers and high premiums for policyholders. So, relocating from rural area to city would cost you. And the opposite is true as well.
The whole thing can be stressful. However, it is best to get organized instead of get stressed. As you tick away items on the checklist you can see that you are leaving one less item to worry about. And it will all be over before you know it.