Insurance and moving to another state – what you need to know
While there are many things to consider when moving to another state, you shouldn’t forget that changing states could possibly have a large impact on not only your insurance premiums, but also on your insurance needs.
Let’s assume that since you are moving, that you aren’t taking your home with you (possible, but not that practical) – what are the things that you need to consider?
First of all, the largest impact to how much your home insurance premium will change will depend on the new home that you purchase and where it is located. Beyond that, however, certain states and/or insurance providers may have discounts that you can apply in your new state that you were unable to take advantage of in your previous state.
That said, perhaps the most important thing that you should research when moving to a different state is what natural disasters are common in the area, many of which – including floods and earthquakes – are not covered under standard home insurance policies. If you are moving to an area with even a moderate chance of a natural disaster occurring (and in fact there is an argument to be made for getting earthquake insurance no matter where you live), we strongly recommend that you investigate what insurance options are available to you.
Unlike moving your home, many people will bring their current vehicles (and their associated auto insurance) with them when they move to another state. However, as insurance coverage can differ by state, you should contact your provider to ensure that you are meeting your new state’s guidelines and that they offer insurance in your new state.
We highly recommend that you contact your insurance company within 10 days of your move and within 30 days at the latest (but don’t quote us on those numbers, it’s solely your responsibility). If you do, then the process should be quite painless, with your insurance provider simply transferring your auto insurance policy to the new state with an adjusted premium, which could be higher or lower depending on which states you’re moving to and from.
Some insurance companies will actually let you keep the same premium from your last state for the remainder of your policy term, but most will require you to change. If your insurance provider does require you to change within a certain grace period after you move and you do not, then you could face repercussions that may include cancellation of your coverage, denial of a claim, and surcharges or other penalties.
Lastly, if when you move you are presented with a much higher premium in your new state for the same vehicle that you were driving in the previous state, or if your current carrier won’t provide coverage in your new state, then we recommend that you take that opportunity to do some comparison shopping for auto insurance, which could significantly bring down your new premium.
October 3, 2011