When you move to a new state, it is normal to have a long to-do list. Just make sure you include an update to your auto insurance policy on your agenda. Learn more about why this step is so critical, and what to focus on.

1. State Requirements

Every state has a minimum liability coverage limit that all drivers must adhere to. For example, in Florida, drivers must maintain a 10/20/10 liability limit, and in Georgia, 25/50/25 coverage is necessary. If someone were to move from Florida to Georgia and not update their policy, they would be underinsured. 

States also have additional policy requirements, such as fault insurance coverage. Using the previous examples, this coverage is required in Florida, but not in Georgia. You will likely need to reconfigure your policy wherever you move.

2. Registration-Coverage Requirements

If you only plan to be in the new state for a short period, such as for a temporary job transfer or military transfer, you might be tempted to keep your vehicle registration in the old state, and then purchase an auto policy for the new state. This scenario does not always work. 

Only if the new state has an agreement with the state on your registration can you secure an insurance policy in the new state? If they do not have an agreement, the insurance company cannot issue you a policy until you update your registration to the new state. If you contact an agent in your new state and tell them where you are moving from, they can help you learn this information ahead of time. 

3. Local Risks

Your new home might come with a set of risks that your last home did not. Consider someone moving from the Midwest who only has collision coverage, for example. If they were to move to a coastal community, there would be the threat of tropical storms, that could send trees and other debris crashing into their car. 

Unfortunately, collision coverage will not offer protection in the event of this type of damage. The driver would need comprehensive coverage for this damage. Assess the risks at your new location to see if you need to add extra coverage.

Keep in mind; you can often make changes to the policy before you move or as soon as you arrive at your new home—there is no waiting period. Contact an auto insurance service to update your policy.