How to Transfer Car Insurance & Driving Credentials to a New State

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By Danielle Kiser

Updated: November 6, 2024

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Parents watching their children play on bubble wrap while unpacking boxes in a bright, cozy living room after moving in.

There's likely a lot on your "to-do" list when you make an out-of-state move, including ensuring your vehicles are legal and safe to drive in your new state. Updating your license, registration and insurance is essential when moving across state lines.

Moving out of state will most likely change the cost of your car insurance premiums. While MoneyGeek found the average American driver pays an average cost of $1,424 a year in automotive insurance, that figure varies dramatically based on location, with state requirements and uninsured motorist rates helping determine policy rates.

Because of the differing state-by-state requirements, MoneyGeek created this valuable and informative guide. It breaks down the steps to take when moving and the auto needs for every state. No matter where your move takes you, you’ll find all the information you need to transfer your car insurance, change your vehicle registration from one state to another and change your driver’s license to a new state.

Key Takeaways

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Moving states requires early coordination with your car insurance provider to prevent any lapse in coverage and potentially adjust for state-specific insurance requirements.

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Updating your driver’s license and vehicle registration within your new state’s grace period is essential to comply with local regulations.

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Premiums can differ significantly by state due to factors like local traffic patterns, weather, and accident rates, ensure to compare insurance quotes beforehand.

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Consider the differences in state insurance laws, such as no-fault or uninsured motorist requirements, as they may impact your coverage and cost.

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Some states offer grace periods for transferring insurance and vehicle documentation; ensure you understand these timelines to avoid penalties.

Steps to Change Auto Insurance and Registration in a New State

If you've never moved across state lines, you'll soon recognize the rules vary significantly from state to state. It's best to check your new state's department of motor vehicles website for detailed requirements to transfer your insurance, registration and driver's license properly.

To make moving more manageable, it helps to break down the process of transferring your insurance, registration and driver's license to a new state.

Step 1: Contact Your Current Insurance Provider

A family is surrounded by boxes in their new home

It's best to contact your current insurance provider as soon as possible. Don’t cancel your current insurance coverage until you have purchased a new policy. A lapse in coverage is illegal in most cases and could leave you financially responsible if you are involved in an accident.

If you are happy with your current coverage, your insurance provider will likely have the resources to easily transfer your insurance to your new state quickly and easily. Reach out to your agent and ask if they offer coverage in your new state. Staying with your current insurance provider may simplify the process and allow you to maintain any loyalty discounts.

Step 2: Learn Your State’s Insurance Minimums

A couple uses their computer to do research on insurance requirements in their new state

Every state has different automotive insurance requirements. You'll want to know these requirements to understand if your insurance premiums could go up or down. Here are some of the essential insurance standards to know:

  • No-fault Insurance: Twelve states and Puerto Rico have no-fault insurance laws. These systems require insurance companies to compensate their policyholders for the cost of injuries, regardless of who was at fault.

    With no-fault insurance, policies typically include personal injury protection (PIP). Each state sets different PIP minimums and benefits, including compensation for medical expenses, lost wages or other out-of-pocket expenses.

    There are variations within the no-fault system, so it's best to review your state's requirements. If you move from a fault-based state to a no-fault state, be prepared to pay a higher premium.

  • Bodily Injury Liability: This covers costs from injuries or deaths related to an accident. You'll see two numbers associated with these minimums: coverage for one person and coverage for all persons injured. For example, 25/50 means there's a limit of $25,000 in coverage for an individual and $50,000 for everyone involved in an accident. These are the minimum limits set by each state. You'll likely want to cover more than $50,000 in injury accident coverage.

  • Property Damage Liability: This coverage reimburses others for the damage you cause in an accident. This includes damage to another vehicle or structures like a building or fence. State minimums range from $5,000 to $25,000. You will likely want to have coverage beyond these state minimums.

  • Uninsured Motorist Coverage: Twenty states require additional coverage for uninsured motorists. This coverage will reimburse you when an accident is caused by an uninsured motorist or in a hit-and-run accident. Options are also available for underinsured motorist coverage, which covers expenses if another driver does not have enough insurance to pay for the entire cost of an accident.

Step 3: Shop Around for Quotes

A man uses his computer and smartphone to shop for insurance quotes

Once you know your state’s minimum insurance requirements, you can get an accurate quote for a new policy. Use the minimum requirements to ensure you are comparing quotes accurately.

Several personal factors impact your car insurance premiums including the ages of all drivers on the policy and their driving records. Getting a personalized quote will help you get an approximate cost and enable you to compare companies. MoneyGeek’s comparison study will help you find and compare car insurance quotes and get the best rates.

Step 4: Purchase Your New Car Insurance Policy

A woman holds her credit card as she prepares to pay for her auto insurance policy online

Once you find the insurance coverage that best fits your needs at the right rate, you're ready to purchase your new insurance. Only when you have purchased new insurance and are fully covered should you cancel your previous insurance. As part of your new coverage, you should get new proof-of-insurance cards to carry in your car and provide to your new state's DMV when you go to register it.

Step 5: Complete an Emissions Test

A mechanic conducts an emissions test on a vehicle

Half of Americans must take one more step before heading to the DMV. Currently, 25 states require a vehicle emissions inspection, which is also known as a smog check. Emission requirements tend to vary based on the model year of your vehicle. Some older, classic models are exempt from smog checks, and new cars may not require one until they are a few years old.

Your state DMV website will let you know if you need to pass an emission inspection as a prerequisite for registration. It will also let you know where to get one and how long you have between your test and applying for new vehicle registration.

Step 6: Apply for a Driver’s License and Registration

People are shown conducting business at their local DMV

The final step for most residents is to head to the closest DMV and apply for a new driver’s license and new resident vehicle registration. While most states offer a grace period before transferring documentation, the length of time you have depends on the state’s rules. Most, but not all states allow about 30 days to get your paperwork organized and head to your local DMV.

When you arrive, you'll likely need several personal documents. Each state is different, but here are examples of the items you'll probably need.

Driver’s License

  • Proof of your identity is essential to getting a new license. You will need to prove your name, date of birth and Social Security number. You can provide this with your previous ID card, Social Security card and birth certificate.
  • Proof of residency requires items with documentation of your new address. Examples of this include a mortgage or lease agreement, utility bills and employment stubs. Some states require two forms of residency documentation.

Registration

  • Proof of insurance is provided by your insurance company. Many states now allow digital proof of insurance from a provider app on your phone.
  • An emissions inspection report will be provided to you when your car passes state testing. Bring this along with you if you live in a state that requires emission testing.
  • Your vehicle title and previous registration will likely be required to apply for your new one. This is necessary to ensure your vehicle is in good standing from your previous state. If you let your registration lapse, you may face fines in your previous state.

Step 7: Return Your Previous License Plates

A man has removed his old license plate from his car

A few states require that you return your previous license plates when you register your vehicle in a new state. As a final step, check your previous state's DMV website to see if you need to return your plates. While this might seem like an unnecessary part of the process, you may get some money back. For example, in Iowa, you can apply for a refund on the unused time on your annual registration.

Your state rules may allow you to skip steps or speed up the process. Each state has its own set of standards and regulations. It's essential to know and understand your individual state-specific information.

State Requirement Profiles

As you begin to address your auto needs in your new state, it's essential to learn and understand your particular state's requirements. Find your state's specific requirements, including insurance minimums and costs, as well as what you need for a new driver's license and registration.

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

District of Columbia

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Budgeting for Your Move: States With Cheapest Auto Insurance

A couple uses a computer to research and find the cheapest auto insurance for their needs

One of the most common questions people have when moving to a new state is, "Will my car insurance go up when I move?" The honest answer is, it depends. In some states, it may go down.

If you're moving to a no-fault insurance state like Michigan, you may pay more depending on the state you're coming from. Michigan has the most expensive auto insurance in the country at an average of $4,000 a year. However, that may change. In July 2020, new lower personal injury protection limits went into effect, lowering rates for many drivers.

Other high priced states include New York, Louisiana and Florida. According to the Insurance Research Council, Florida's insurance premiums are so high due to the state's 26.7% uninsured motorist rate. When one in four drivers do not pay for car insurance, it costs the three drivers that do have insurance more money.

If you're moving to Maine, Indiana or North Dakota, you'll likely find cheaper premiums than what you were paying. Those states have the cheapest auto insurance. Maine drivers only spend an average of $607 a year on car insurance. Maine is so affordable because less than 5% of its drivers are uninsured.

While location plays a significant role in how much you'll pay for auto insurance, there are three easy hacks for saving money on your premiums.

  1. Loyalty and Bundling: Insurance companies offer discounts if you have multiple policies with them and stay with them year after year. If you are purchasing a home, ask your auto insurance company about bundling homeowners and auto insurance for a discount.
  2. Shop Around: You may think your current car insurance is the best price for you based on catchy commercials or previous price comparisons. However, if your life has changed, your pricing may have changed as well. Getting a personalized quote may better reflect your current situation, especially if you're a reliable driver.
  3. Fix Your Credit: Your insurance rates can be directly related to your credit score. Higher credit scores translate to lower risk drivers for many insurance companies. To be eligible for lower rates, check your credit and fix any mistakes.

Expert Insight on Moving to a New State

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Janet Ruiz
Director of Strategic Communication at the Insurance Information...
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Douglas Heller
Independent Consultant and Recognized Insurance Expert for the...

About Danielle Kiser

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Danielle Kiser is an Emmy Award-winning producer and a professional journalist with over 15 years of experience. She writes finance content for MoneyGeek, sharing her knowledge of state regulations, insurance and real estate.

Kiser earned her broadcast journalism degree from the University of Missouri’s School of Journalism.

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