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Moving Car Insurance Policy

movingMoving requires making lots of changes, a new home, new mailing address, new utility companies and new neighbors. But it also requires a new car insurance policy if you are moving to a new state.

In the U. S. each state regulates insurance companies. Each individual state is in charge of establishing their own requirements licensing companies to sell insurance to its residents. Consequently, you’ll find differences in the car insurance policies available in every state.

Take Indiana and Ohio, for example. Although they are neighboring states, both have different minimum coverage requirements for auto insurance. Indiana requires minimum coverage amounts of $25,000 per injured person (up to $50,000 per accident) and $10,000 for property damage. Ohio has lower minimums: $12,500 per person (up to $25,000 per accident) and $7,500 for property damage.

While those laws seem fairly straightforward, Ohio’s neighboring state of Pennsylvania shows just how different state requirements are. In this state, drivers have a choice between full and limited tort coverage. If they choose the former, they can sue the driver who causes an accident Moving to a New Location? Get Car Insurance Quotes Quick and Easy
for full damages. If they choose the latter, they can still sue the driver but their pain and suffering claims are limited. The state also requires PIP (personal-injury-protection) coverage which essentially pays for your medical bills if you are involved in a car accident. This type of coverage is not required in Indiana or Ohio.

As you can see from this example, states requirements for a car insurance policy can vary dramatically. Coverage in one state may not be sufficient in another state so you need to switch policies as early as possible to ensure you are in compliance with the state’s laws.

With this change in policies, you may also see a significant change in insurance prices. According to a Forbes 2012 article, drivers in states such as Louisiana and Oklahoma pay the highest annual premiums for car insurance ($2,536 and $2,047, respectively) compared to states like Maine ($889 per year) and Iowa ($985 per year). Those figures suggest you could either save more or spend more on your car insurance after moving.

Either way, the costs of not switching can be much higher, including the loss of your license if you are caught driving without sufficient insurance coverage. The bottom line is if you’re moving to another state make sure you change your car insurance as well as your mailing address.