I’m Moving: Will My Car Insurance Go Up?

The average cost of car insurance varies by state, so if you move to a state with higher average costs, your rates could increase, and vice versa. For example, Louisiana has the highest rates in the U.S., while Maine has the lowest rates, so moving to either of those locations could have a significant impact on your premiums. Check out the average rates in your current state and your new state to estimate if your car insurance will likely increase or decrease.

How Your Address Impacts Car Insurance Rates

Where you live affects car insurance rates because of the different state laws governing various aspects of auto coverage.

• Minimum insurance requirements: Each state has different requirements for what car insurance coverages you need and the minimum limits for each coverage type. For example, New Jersey is one of the few states that doesn’t require bodily injury liability coverage. However, Michigan has the strictest requirements of all — policies must cover up to $1 million worth of property damage for accidents that occur in the state. The more coverage and the higher limits required, the more expensive car insurance will be.
• Fault laws: In an at-fault state, the at-fault driver is responsible for the other party’s injuries, whereas in a no-fault state, each party pays for their own injuries under personal injury protection (PIP) regardless of fault. Insurance tends to cost more in no-fault states due to increased amounts of insurance fraud and lawsuits.

• Population density: More people in a given place means higher accident rates and thus, more claims for auto insurance companies to pay.

• Commute: If your move means a longer commute, you could pay more for car insurance. On the other hand, if you have a shorter or no commute at all, you could see decreased rates.

If your insurance rate increases when you move, there are ways to save.

• Drop coverages: The least expensive insurance is minimum coverage. You can drop coverages like comprehensive and collision coverage, which no states require, or add-ons like rental car coverage. However, keep in mind that the fewer coverages you have, the more you may have to pay if you have a claim.
• Increase your deductible: Increasing the size of your deductible will lower your car insurance rates, but make sure you’ll actually be able to pay that larger deductible amount in the event of a covered claim.
• Bundle home and auto: Bundling is another easy way to save money on car insurance. When you’re moving, bundle your homeowners, renters, or condo insurance with your auto insurance to save money.
• Ask for discounts: Every car insurance company has some discount offers available, from signing up for paperless billing to getting early quotes. Ask your insurance agent how you can save.
• Switch companies: If you’ve done all the above and still can’t afford your car insurance, consider switching to a new provider.

1. Notify your insurer: The easiest way to find out if you need new car insurance for your new place of residence is to contact your agent. Not every insurance company covers every state. Also, your current provider may not be the most affordable option in your new state. And if you’re moving out of the country, you’ll definitely need an entirely new policy. Notify your insurer as soon as you have your moving date and new address.
2. Update your address: You’ll need to provide your insurer, be it your old provider or new, with proof of your new address, which could be in the form of a recent pay stub, W-2, utility bill, or driver’s license. This is required so companies can prevent insurance fraud.
3. Switch companies: Finally, change your car insurance while moving out of state. Shop around for an affordable quote, and make sure your old and new policies overlap so you’re never driving without insurance.

In order to register your car in your new state, you’ll need in-state car insurance. Two exceptions are New Hampshire and Virginia, the only states that don’t require auto insurance.

That said, in Virginia, you’ll need to pay the state’s $500 Uninsured Motorist Fee to register your vehicle⁶. New Hampshire, on the other hand, doesn’t require proof of financial responsibility for car registration. Rather, you’ll need only the car title and proof of residency. If the vehicle is leased instead of owned, you’ll need the lease agreement, lienholder name and address, and out-of-state registration⁷.

Every state except Wyoming regulates the car insurance industry to ensure insurance carriers can pay claims, and that rates are reasonable and not discriminatory. Here are the regulatory systems states use.

• File and use: Also known as competitive ratings, in file-and-use states, car insurance companies must file their rates before they use them. However, prior approval isn’t required. Retroactively, regulators can reject rates they deem inadequate, excessive, or unfairly discriminatory. If a regulator rejects a rate, the company may have to refund amounts to policyholders or even pay fines.
• Prior approval: In contrast, in prior approval states, companies must get regulator approval before their policies and rates can go into effect.⁸
• Use and file: The opposite of file and use, in use-and-file states, insurers file the rates after they use them in the market.
• Flex: Flex states allow insurance companies to use rates without notice, as long as they’re within a certain range.
• Limited flex: Limited flex states are flex states with a more narrow range and more constraints.
• Deregulated: In a deregulated state like Wyoming, there is no state review of rates, and insurers aren’t required to file their rates with the state.⁹

See your state’s regulatory system below.

Hopefully, your move will cause your car insurance rates to decrease instead of increase, which could be a boon to your personal finances. To learn more, keep reading our FAQs below.