Budget Concerns: How Much Insurance is Enough?

Insurance On The Move: Updating Your Address After A Cross-Country Move

17 July 2015

Dustin Duncan

When you move from one state to another, your auto insurance is probably the last thing on your mind. However, updating your address with your insurance company is vital. Here are a few things you need to know about making sure you have the right address on file.

Changing Your Address May Save You Some Money

In some cases, making sure that your insurance company has a correct address on file can actually save you quite a bit of money. This is especially true if you are moving from a high-traffic area, such as South Louisiana, to a small town in an area like rural Ohio. Risk factors like crime rate, traffic density, and smog or air pollution levels can all affect your insurance rate, so moving away from some of these things can do a lot to help you reduce your insurance premiums. 

Different States Have Different Insurance Requirements

Because minimum insurance requirements vary from state to state, you may be over-insured or under-insured in your new area without realizing it. In order to make sure that your coverage is right for your state, make sure that you speak with an agent who is familiar with the insurance requirements of your new location.

The Wrong Address Can Affect Your Ability to File Claims

Having the wrong address on your auto insurance policy can be considered insurance fraud. This is especially serious if you have an accident in your new location and have to file a claim. Not only can your insurance company refuse to pay the claim, but some states also take action by imposing fines on drivers with incorrect insurance. In the event of an accident, you need insurance that will cover your car. The last thing that you want to have to deal with is cancelled insurance and a ticket for having the wrong coverage.

Some States Require Proof of Insurance for Updating Your License and Registration

In some states, you are required to show proof of insurance in order to get a new driver's license and update your vehicle's registration. In others, a lingering incorrect address on your auto insurance may cause the state to impose a fine for not having your car registered in the same state as the insurance. For example, if you move from Louisiana and do not update the address on both your insurance and your registration, you may get a letter in the mail saying that you owe a fine for failure to carry insurance on your vehicle. 

In order to avoid the hassle of fines, paperwork, and stress, make sure that you change your insurance address as soon as possible when you move to a new state. You never know. You may even save a little money by doing so.

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