Canceling Car Insurance Before Moving Could Cost You Up to $5,000

TAMPA, Fla., Oct. 17, 2022 /PRNewswire/ -- A recent report published by CarInsuranceComparison.com warns motorists anticipating a move not to cancel their insurance coverage before securing new coverage.

Most people know they'll need to update their insurance policy or get a new one when they move out of state. But if they get the timing wrong, they could have a lapse in insurance coverage and put themselves at liability risk.

The states with the highest minimum fines for driving without insurance are as follows:

• Delaware – $1,500
• Mississippi – $1,000
• Arizona – $500
• Colorado – $500
• Illinois – $500
• Kentucky – $500
• Louisiana – $500
• Massachusetts – $500

Many states have higher "up to" limits. For example, uninsured drivers in Massachusetts and West Virginia could receive fines of up to $5,000.

Melanie Musson, a nationally recognized car insurance expert with CarInsuranceComparison.com, explains how to ensure continuous car insurance coverage when moving to a new state.

"You can keep your insurance policy when you move. While you can't keep out-of-state coverage forever, a grace period allows you to establish residency, update insurance, and register your vehicle after you move."

Instead of canceling an insurance policy in anticipation of a move, drivers should keep their current policy, move, secure new coverage, and then cancel their previous coverage.

Of course, if an individual's established insurance provider is licensed in their new state, they can simply update their coverage without switching providers.

CarInsuranceComparison.com also reports that drivers can expect their premiums to change when they move. Musson points out that moving from an urban area near the east and west coasts to a rural area in the midwest will usually lead to significant savings. Some drivers could see rates less than half of what they were.

Other moves will result in higher insurance premiums. Therefore, drivers should be prepared for changes when they update their insurance policy following a move.

Read CarInsuranceComparison's full report here: How to Handle Car Insurance Policies When Moving Out of State.

SOURCE CarInsuranceComparison.com