Skip to Main Content

Managing your car insurance when moving

Mary Van Keuren Maggie Kempken
Written by
Mary Van Keuren,
Edited by
Maggie Kempken
Published on July 09, 2024 | 9 min read

Bankrate is always editorially independent. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation of . Our content is backed by Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our . Our is to ensure everything we publish is objective, accurate and trustworthy.

A man and woman play with their small child after a hard day of moving boxes into a new home.
Blend Images - LWA/Dann Tardif/Getty Images

Moving is generally a milestone event in anyone’s life, and it can come with many tasks and challenges. One job that you’ll want to attend to as soon as possible is updating your car insurance policy. This is true whether you are moving across the country or just across town. You may be wondering, does car insurance change when you move within your town? Surprisingly, the answer may be yes. Bankrate’s insurance editorial team developed this handy guide to answer your questions about car insurance when moving.

Do you have to change car insurance when you move?

Any time you move, even if you are only going a few streets away from your old residence, you need to contact your insurer to update your policy. Even a short move can change your premium—and here’s why. Your insurer determines your rate based on the risks where you live. So if you move from a high-crime neighborhood to a lower-crime neighborhood, for example, your rate could decrease because there is less likelihood of car theft. Likewise, if you move from an area with congested traffic to a more suburban or rural location, the decreased risk of accidents could impact your rate. You may also find that you could earn a lower rate by switching carriers after the move.

If your move is significant—say, to another state—changes may be more drastic, and the best carrier for your needs may be a completely different company. It’s important to note that almost every state has its own minimum levels and types of car insurance coverage required by law, so your policy levels may differ in your new location, as well as the types of insurance you need to have. Average rates also vary from state to state, so you are likely to pay a different premium in your new location.

Bankrate and Coverage Logo

Compare auto insurance rates

Answer a few questions to see personalized rates from top carriers.
Location-Icon
Your information is kept secure

Powered by Coverage.com (NPN: 19966249)

Advertising disclosure
Insurance disclosure

When should you switch your car insurance while moving?

Managing car insurance while moving is vital, and you only have a finite period of time in which to do it.

Most states have regulations in place that require you to switch over your license and registration within one to three months of setting up residency, which means also updating your insurance to meet local requirements. Specific insurance requirements in your new place of residence can be found by checking with your state’s Department of Motor Vehicles.

Your insurance company may require you to update your address even sooner. Ask your insurer about its specific guidelines.

Do I need new insurance before I register my car in a new state?

Most states require you to have proof of insurance before registering your vehicle in your new state. That means you should start shopping for a new car insurance policy as soon as possible after moving into your new place. You generally only have between one and three months to register your vehicle, so make sure you give yourself enough time to compare providers and choose a policy.

How do you switch your car insurance after moving?

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

  1. Get quotes from multiple insurers. Even if your current insurance company can provide coverage in your new state, there is no guarantee that it will offer the best rates, even if it was the cheapest at your old address. If you are moving within your current state, you may still want to explore multiple insurers. Carrier premiums can vary in different regions of the same state.
  2. Understand your company’s cancellation terms. Although it is not common, some companies impose a termination fee if you cancel your policy prior to the end of your term. However, insurance agents do not advise waiting to change your policy to your new state just to avoid the cancellation fee. Getting your policy in your new state to satisfy your state’s laws is critical to your financial health.
  3. Confirm your policy’s start date. You want to make sure you do not have any lapses in coverage between policies; not only is this against the law in states that require car insurance coverage, but it also exposes you to a great deal of risk. Make sure your new policy begins on the date that you cancel your old one to avoid a lapse or overlap of coverage.
  4. Cancel your old insurance policy. Keep in mind that some insurers require written notice of cancellation, so check that you are not double billed for insurance after your new policy kicks in.

You may want to check if your state or insurance provider has additional requirements.

Does moving affect your car insurance rate?

Yes, moving can affect your car insurance rate — even within the same city. Auto insurers in most states (though notably, in a very limited way in California) use your ZIP code, along with other factors, to determine car insurance rates. Factors such as population density, accident frequency, crime rates and vehicle theft frequency can all change between ZIP codes, and those factors can affect insurance rates.

The average cost of car insurance per year varies significantly among states. Cities in the same state often have vastly different rates as well. Because car insurance rates are determined by factors such as population density and crime in a certain region, two cities in the same state often have vastly different average premiums.

Note that if you are moving into an area with high average rates, there are still several ways you might be able to save money on your car insurance. Shopping around among providers is one tactic. Asking for quotes is simple and free, and can net you a range of prices from which to choose.

Consider discounts, too, when you are looking at potential insurers. Almost every insurer offers at least a few, and they can be easy to qualify for. Working with a knowledgeable independent insurance agent is another way that can help you find a policy that works for your wallet from a provider that offers excellent service and support.

What other things should you consider after moving?

Updating your auto insurance is not the only thing you need to do to drive legally in your new state. You should also:

  • Transfer your driver’s license: You may only need to present your current license along with additional forms of identification and proof of address to update your driver’s license to your new state. However, in some states, you may also need to take a written exam and/or pass a vision test. Check with your local DMV for more details.
  • Update your registration and license plates: While you are at the DMV getting a new license, you may also be able to register your car in your new state. You will need to show proof of updated insurance to do so. In some states, registering and obtaining new plates may occur at an office other than the DMV. Georgia residents, for example, require you to apply to your local tax commissioner’s office for new registration and plates. Find out what your state’s process is for registering your vehicle and obtaining license plates so that you can drive legally in your new hometown.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze June 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Written by
Mary Van Keuren Arrow Right Icon
Contributor, Insurance
Mary Van Keuren has written for insurance domains such as Bankrate, Coverage.com, and The Simple Dollar for the past five years, specializing in home and auto insurance. She has also written extensively for consumer websites including Reviews.com and Slumber Yard. Prior to that, she worked as a writer in academia for several decades.