Out of State Moves and Car Insurance: Is "Housing' Auto Insurance Legal?

There really is so much to think about when you move out of state. Everything from employment to getting the pets and kids adjusted can all play a role in stressing you out right before and right after an out of state move. Ironically, your car insurance company might be making your out of state move more difficult than necessary. Many car insurance companies are now "housing' insurance policies in one state while you go claim a residence in another. This is most commonly done when your insurance company stands to lower your rate in the new state.

Your car insurance company will most likely be able to convince you that "housing' you insurance policy in the state you just moved from is in your best interest. While occasionally that is the case, most often it is not and most often the one that gains is the insurance company. Rates can vary greatly by state, and often when a car insurance rate stands to plummet once the move is complete coincides with their willingness to "house' your car insurance policy.

It is not an easy scenario to explain when a zealous police officer asks you why your information doesn't match. Mismatched information is in itself a crime, but it often masks a different crime or criminal intent. You can almost always count on walking away from your police officer experience with a ticketed fine. Very few states allow for mismatched information or out of state "housed' insurance unless you are an active or retired military personnel.

Out of state moves require a change of address, a change of registration, a change of license, and a change of car insurance policy. Your policy from your old state may or may not cover an accident in your new state when your policy is being "housed.' The laws become complicated and often the consumer is blamed regardless of what they were told by their car insurance company. Obviously, this makes for a rather complicated scenario.

Some states will honor "housed' car insurance. However, in most cases, when a car insurance company tells a consumer that they are planning on "housing' the insurance policy in the old state, they add on their own version of a disclaimer that goes along the lines of "unless your new state has a problem with it.' Don't mistake that for an intent to research your new state's laws. You can feel free to take it as an intention to change the policy after you get pulled over and ticketed for having mismatched information. A ticket is definitely the best possible outcome to breaking this law. "Suspicious individuals' can be held for seventy two hours without question for such an infraction is the officer believes that individual might be connected to terrorism in the United States. With all the possibilities and potential consequences, it really is better to demand that your car insurance company switches your policy over when you complete your out of state move.