Auto Insurance Information You Should Know Before Moving

You may be only moving a couple of hundred miles, but every time you change your residence across state lines, there are some significant auto insurance issues to consider, and some auto insurance information you shouldn't do without. Here are some things you may need to know about changing your auto insurance when moving out of state.

• You can't keep your old insurance - some drivers may think that they can just rely on their existing auto insurance policy, but in reality, they can't. This is because every state has its own guidelines and procedures for issuing auto insurance. You may think you're still covered when moving out of state, but if the insurance company catches on that you are garaging your vehicle in another state, they will not pay on claims, and they will drop the policy.
• Avoid a lapse - one primary consideration in changing state residences is to make sure that you will have auto insurance coverage in your new state before dropping your old policy. A "lapse" in auto insurance can make it difficult to insure a driver or vehicle when they later apply for coverage. To avoid this, keep your existing policy until the new one goes into effect. Even if you are getting irrelevant coverage for a short time period, it may be worth it to avoid a gap in coverage.
• Look into different state requirements - as mentioned, every state has its own unique rules and regulations about auto insurance. Most states require some kind of basic liability insurance for drivers, but the coverage amounts and coverage types will differ. One example is uninsured or underinsured motorist coverage, which many states mandate as necessary coverage, while some others do not. Talk to your insurer representative about how this will affect your specific premiums.
• Different "garaging environments" will change rates - if you're moving from the country to the city, or anywhere else where traffic and environment differences might cause rates to go up, talk about this to your insurer to make sure that any changes to your policy are legitimate and not just "padding the bill."
• Assess your "risk by area" - another consideration is that some areas of the country are considered "higher risk" because of statistics about what kind of traffic situations happen in specific locations. Find out about your new destination and what kind of risk it carries to see how this may change your auto insurance premiums.
• Talk about extras - the basic liability insurance that your state requires will not cover extra needs such as collision or comprehensive insurance, insurance types that will cover lost wages and medical coverage in the event of a claim, or other specific coverage types such as "gap" insurance for making sure that a new or gently used vehicle will be covered up to its value. Make sure you personally add all of the insurance features that you need to protect your investment in a vehicle and cover your liability in terms of personal injury risk.

Taking these basic guidelines into consideration will help those who are moving out of state and need to secure new auto insurance coverage.