There are times people may be in between addresses. They moved out of their home but haven’t yet moved to their new place. And there are people who don’t have a place to call home because they are homeless. Some may actually sleep in their vehicles. Those people need to insure their automobiles too. So, is it easy to get car insurance for homeless even it is a temporary situation?
How Important Home Address Is for Auto Insurance?
Your zip code is statistically significant because it tells an insurer about the past accidents, crime, congestion, weather conditions and general welfare of your neighborhood. All these factors affect auto insurance quotes that it becomes a problem when you cannot be pinned down to a geographic location. Also, carriers want to pin you down to a particular door number and street to know where your car will be parked most nights, does it have a garage or driveway, who else living in it and so on.
Furthermore, your credit history is mostly tied to your past addresses. If you are living off the grid or without an address there is a chance your history isn’t complete and this increases already high risks of insuring such driver and the vehicle. Besides, companies cannot actually confirm that the information you have given is correct if you don’t have a permanent home. Therefore, most insurers consider car insurance without permanent address as too much risk to accept. It is easier and safer to decline the applicant.
Temporary addresses like hotels or other halfway houses increases the unknown risks to an unacceptable level for most insurance providers. There is nothing keeping you there long enough if you don’t have a rental contract or lease. You can easily pack up and move to somewhere else that creates a transient risk for insurers. If they are aware of the situation they will probably decline to insure you. And if you hide such material fact you will be giving them cause to decline a claim in the future.
Auto Insurance When You Are in Between Addresses
If you have moved out of your home and waiting to move into another one you may have a good chance to find acceptable coverage as long as you know the address you are moving into and it is happening soon. There can be many reasons as to why this would happen. You just sold your house and had to get out but the purchase of the new one hasn’t yet completed. Or you may be waiting for the current tenant to vacate your new apartment.
Then, most insurers would accept your new address as your address. However, you need to explain your circumstances clearly by giving them your old address, where you live currently and where you will move and when. Usually, around 30 days in a temporary address wouldn’t cause a problem.
Also, as long as you live somewhere fixed it may not matter that it is not the address you will be throughout the policy term. All you need to do is to let your insurer know your new address when you move. Then, your insurer will adjust your premium accordingly and you pay the difference in premium or even get a refund.
If you are living in a hotel currently it may still be acceptable if you are there until you move to a more permanent address. However, moving from motel to motel isn’t really considered a stable address and most insurers would decline to quote if they know it.
The best thing to do is to explain your position as best as you can and check with another insurer if the first one declines coverage. You may find a non-standard car insurance company to accept your situation even if it means higher premium for you. You can switch to a standard insurer when you move permanently.
Homeless Car Insurance
If you are currently homeless and have been for a while your situation is bordering hopelessness in terms of finding automobile insurance. Most companies will not be happy to insure someone who cannot give them an address. It is simply too much transient risk since they don’t know where you will be tomorrow.
If you are staying in a certain area and have connections you may talk to a friend or family member and see if you can use their address. But this can create a serious risk of denial of future claims, especially if you don’t stay there at all or enough. If you cannot call a place home you shouldn’t tell the insurance company that it is your address.
Every vehicle owner needs insurance to drive legally and you need an address to buy coverage. Probably the best thing is to talk to your state insurance department or an experienced broker to see if they can help. State insurance department is the first call for uninsurable drivers because they arrange coverage for risks that falls outside the accepted norms.
Where you live as a fixed address and as a state is important. Each state has its own rules and regulation on registering and insuring vehicles. That is why it is important to look at each situation within the context. Your circumstances may seem extra difficult but you should try to find an acceptable solution before you cause an accident or get caught without insurance. Therefore, at least you should try to buy liability only vehicle insurance. Besides, your local DMV, where your car is registered, probably knows all along that your car isn’t insured.