Car Insurance When Moving Out of State – Do Auto Transport Companies Need to Provide One?

September 22, 2023Car Shipping Essentials
Diana Road

A talented writer from Wichita, Kansas, with a passion for helping people navigate the stressful process of moving. With her extensive knowledge of the moving industry, Diana has become a go-to resource for useful info

When managing a relocation, it’s crucial to comprehend the ins and outs of car insurance when moving out of state. However, one key question arises – should your car shipping company offer moving out-of-state car insurance? We will delve into this pressing concern, ensuring you’re well-equipped with the knowledge necessary for a seamless, worry-free transition.

When obtaining a good policy for shipping vehicles across the state, get informed on what auto transport services offer and why is obtaining this policy important. Also, focus on what factors and terms are important when choosing the coverage for a four-wheeler. Research and compare multiple companies before picking the one with a good reputation and credibility and the best coverage offer.

What are Auto Transport Services?

Auto transport services, provided by professional auto transport companies, specialize in safe and efficient shipping cars in the USA. Professional car shipping works with the option of two auto transport solutions – open and enclosed transport. Open trailer, the more common and economical method, involves shipping vehicles on open-air carriers. Although vehicles are exposed to weather conditions, it’s generally safe.

On the other hand, enclosed auto transport provides additional protection by shipping vehicles in closed carriers, thereby shielding them from the elements and road debris. It’s often chosen for high-value modern or classic automobiles, but it comes at a higher price. Using professional car shipping services offers several benefits, such as relieving the moving stress and even the anxiety of driving long distances. It also ensures the safe handling of vehicles and provides coverage for transported vehicles, thereby ensuring peace of mind for the owners.


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Why Is It Important to Have Car Insurance When Moving Out of State?

A policy is necessary to protect you financially during the move. The process of moving can increase the risk of accidents due to unfamiliar routes, heavy traffic, or simply added stress. Having adequate coverage during this time provides protection against potential financial losses that could arise from such incidents. Failure to have the right coverage when moving can have serious consequences. You could be left financially exposed if an accident were to occur during the move.

Two individuals going over the terms of the policy
Go over the terms of your policy with your agent, and find out why is it a must to be covered when relocating out of state

What Factors to Consider When Choosing a USA Auto Transport Company

Understanding these factors is vital as they directly impact the safety of your vehicle, the effectiveness of the transport, and the overall service experience. Inadequate research or overlooking these factors may result in choosing a less reliable company, leading to potential delays, damage, unexpected costs, or a lack of recourse if something goes wrong.

Also, being well-informed aids in making a decision in choosing a company that offers the best coverage in case you are a young driver and have a limited budget to cover repairs. Value, balancing cost, service quality, and peace of mind are all important. Remember, choosing the right company to handle your relocation is a crucial step.

Research and Compare Insurance Policies

Spending time to research and compare policies can save you money and ensure you’re adequately protected in case of unexpected events. Here are some steps to guide you through the process:

  • Identify your needs – determine what you want from your policy.
  • Understand the types of coverage – familiarize yourself with the different types of coverage offered in each category. For example, you might consider policies that come with enclosed transport or the one that comes with open shipping.
  • Shop around – get quotes from different companies, as many provide online tools to calculate premiums based on your requirements. Be sure to get a wide range of quotes before making a decision.
  • Read reviews – check auto transport reviews and ratings for each company you’re considering. This can provide insight into the experiences of other policyholders and give you an idea of the company’s reliability and customer service.
  • Consult with professionals – if you’re still unsure, speak with their customer service team. They can provide personalized advice based on your specific needs and circumstances.

Checking the Reputation and Credibility

This involves researching their past performance, checking if they are illegitimate, reviewing feedback from customers or clients, and assessing their overall standing in their respective industries. Online platforms, such as the Better Business Bureau, Google Reviews, and various social media platforms, provide valuable insight through customer testimonials and ratings.

Additionally, professional industry associations or licensing bodies may provide information on a business’s accreditations or any disciplinary actions taken against them. Remember to look for patterns in the feedback rather than isolated incidents. Consistently negative reviews might indicate systemic issues.

It’s also important to evaluate how businesses respond to criticisms or complaints, which speaks to their commitment to customer satisfaction. Ensuring the entity’s reputation and credibility can prevent potential disappointments or disputes, and it affirms your trust in their abilities, services, or products, ultimately leading to a more satisfactory outcome.

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Understand the Terms and Conditions of the Insurance Coverage

Understanding the terms and conditions of your policy is essential to know exactly what protection you’re buying and what to expect when you need to make a claim. Here are some key points to focus on:

  • Coverages – this includes what is covered under the policy, so make sure you understand what types of incidents or conditions are covered.
  • Exclusions – these are the things the policy doesn’t cover, so be sure to be well-informed about them.
  • Limits – these are the maximum amounts the company will pay for a covered loss. Limits can be per incident or per policy term and they may vary based on the type of loss.
  • Claim process – the policy should outline how to file a claim, what documentation you’ll need, and how the company calculates payouts. It should also explain the company’s process for handling disputes about claims.

Remember, policies are legal contracts. If there’s anything you don’t understand, it might be helpful to talk with the company’s customer support. Fully understanding your policy can help you avoid unexpected costs and ensure you have the coverage you need.

Policy and pen
Read your policy offer through and ask all the questions before signing it

What to Do if Your Car is Damaged During Transportation

That is why we always say “Photograph the state of your belongings before you hand them over to your movers.” As soon as you receive your vehicle, no matter if you opted for door-to-door auto transport or terminal-to-terminal car shipping, make sure to thoroughly inspect its exterior and compare it to its previous state. Once you notice the damage, document it meticulously. Take photographs, make notes of the affected areas, and compile a comprehensive report.

This evidence is key to ensuring a smooth resolution of your claim. Remember, it’s your responsibility to report these damages as soon as they’re discovered, typically within a certain time frame after delivery. By understanding these procedures, you can better navigate this stressful situation, ensure your rights are protected, and hasten the restoration of your vehicle to its pre-transport condition.

a man takes pictures of a car on the phone in the middle of the city
Document the state of your vehicle from all sides and angles before you hand your keys to the car shipping company

Hiring an Insured USA Auto Transport Company, Will Give You Peace of Mind During the Move

Major life changes, like moving to a new home, having a baby, or getting a job in a new city, leave little time for other stressors. Knowing your valuable vehicle is in the hands of professionals, protected by comprehensive coverage, provides a stress-free move. Trust in the USA Auto Transport company to ship your four-wheeler to another state and safeguard it from origin to destination. Please do not hesitate to contact us today and ask us all the right auto shipping questions, discuss your transportation needs, and experience the comfort of an easy relocation. Your peace of mind is our highest priority.


How to Change Car Insurance When Moving Out of State?

When moving out of state for the first time, contact your current provider to inform them of your relocation. If they provide services in your new state, they can adjust your policy to meet local requirements. If not, you’ll need to find a new provider. Ensure you have continuous coverage throughout your transition to abide by legal requirements and avoid potential gaps.

Do I Need a Car Policy When Moving Out of State?

Having vehicle coverage is mandatory across the United States, although each state has its own specific coverage requirements. The thing you should consider when preparing for long-distance relocation is to research the mandates of your future state to ensure you meet the necessary coverage levels.

Is My Current Policy Valid in the New State of Residence?

Generally, your existing policy will cover you during your move. However, once you’ve established residency in your new state, you’ll need to adjust your policy or switch providers to meet that state’s legal requirements.

What Is Gap Insurance, and Do I Need It During the Move?

It covers the difference between your vehicle’s actual cash value and the amount you still owe on it if it’s totaled. Whether you need it during your move hinges on your vehicle’s value and the coverage offered by your transporter.

Are There Any Changes in Car Coverage Requirements When Moving to a New State?

Yes, each state has unique requirements regarding minimum coverage levels for areas like bodily injury liability and property damage liability. As you prepare to move, research these specifics for your new state. Upon arrival, you’ll need to update or change your policy to comply with these requirements, ensuring your coverage is legally adequate

Can I Cancel My Current Car Insurance Policy After the Move?

You can cancel your current policy after the move. However, it’s crucial to first ensure you have adequate coverage in your new state to avoid a lapse in insurance, as this could lead to legal issues and potentially result in higher premiums when you obtain a new policy. Always prioritize continuous coverage.

What Steps Should I Take To Ensure Continued Coverage and Protection for My Vehicle After the Move?

Upon establishing residency in your new state, promptly contact your insurance provider to update your policy to meet local requirements. If your provider doesn’t operate in your new state, you’ll need to secure a new policy. Keeping a close eye on coverage timelines and communicating with insurance representatives will ensure uninterrupted protection for your vehicle after your move.

What Happens if I Don’t Have Adequate Coverage During the Move?

Lacking sufficient coverage during your move can lead to financial complications. If an accident occurs, you may face out-of-pocket costs for damages. Also, your transportation company may be violating state laws.

Are Auto Transport Companies Required to Provide Car Insurance?

Yes, auto transport companies are legally obliged to carry these policies. This coverage provides financial protection should your vehicle sustain damage during transit. One of the biggest car shipping advice we can give you is to always ask for proof of insurance before engaging in a transport service.

What Type of Policies Do Auto Transport Companies Typically Offer?

Auto transport companies generally offer liability and cargo coverages. Liability covers damage caused by the transporter, while cargo policies protect the vehicles being transported. The specifics of this coverage can vary, so always request detailed information.

How Do I Choose a Reputable Auto Transport Company With Reliable Coverage?

Research and customer reviews are key to choosing a reputable transporter. A reliable company will be transparent about its policies and coverage, so don’t hesitate to ask for comprehensive information before making a choice. A trustworthy company and its coverage will give you peace of mind during your vehicle’s transportation to another state, protecting you from potential out-of-pocket costs.

What Should I Do if My Car Is Damaged During Transportation by the Auto Transport Company?

If your automobile is damaged during transportation, immediately document the damage. This includes taking photographs, noting the specifics of the damage, and reporting it to the transport company. Timely reporting is crucial. Following this, file a claim with the transport company’s insurance for compensation, providing your important documentation as evidence to support your claim.

Can I Drive My Car to the New State Instead of Using an Auto Transport Company to Avoid Insurance Concerns?

Driving your vehicle to your new state is a viable option. However, consider the potential wear and tear on your vehicle, as well as travel expenses like fuel and accommodations. Furthermore, your safety and comfort during a long drive are important considerations. Insurance concerns can typically be managed with careful planning, regardless of your chosen method of transportation.

Does Car Insurance Coverage Vary Based on the Type and Value of the Vehicle Being Transported?

No, insurance coverage can vary based on the type of the chosen carrier. Ensure to discuss the specifics of your transportation options with the auto transport company to understand the extent of their coverage.

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