It is highly recommended that one purchase new coverage in the new state, especially if one is staying there for more than six months. This is to make sure that drivers could avoid any potential questionable coverage-issues and maybe even state penalties. Even if almost all of all the US states have a general rule in requiring drivers to have financial liability when driving their vehicles, each one has different requirements and specific laws for car insurance.
The danger of being caught and not having the proper auto coverage would result in the same penalties as having no insurance. Some states take their insurance laws very seriously, and other than paying costly fines, there is also the risk of vehicle impoundment and even incarceration.
One has to research on whether their new state has different rules and procedures from their first one. Details to take note are whether the new state has different requirements for bodily injury and property damage coverage, and if it is an at-fault or no-fault state. Sources for such information include the state’s official website and news articles (especially the highway safety sections). Visiting the Department of Motor Vehicle’s (DMV) website is also recommended, as it provides relevant information such as applying for a new license, and other helpful articles.
There are some details and procedures one has to take care of before moving. The first step involves checking one’s car insurance policy rules, and contacting the company agent to see if the policy or premium would be affected by the move. Also, inform the company if the new state is an at-fault or no-fault one if need be.
Next is to notify the company the date of the move and the new address. One’s policy would need reassessment after six months, and the premium may increase or decrease depending on the new address.
Then, there is the decision of whether to stay or move on to another company depending on the increase and decrease of the premium. If the premium would most likely increase, then it is wiser to shop for quotes in the new state. Before making a decision, be sure to request multiple quotes. One’s current policy could either be terminated after six months or if there is already a better quote from another company.
Lastly before moving, one has to contact the company again and inform them of the new address if one purchased a new policy.