Sold house, moving to rental...do I need to report to car insurer? (insurance, auto)
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I just sold my house and will be moving to a rental while house hunting for new house.
I did an online quote to see how that would affect my insurance, and it increases my premium a LOT! I guess because (1) I will no longer be a homeowner; and (2) I haven't lived in that rental for long.
I guess I have to report the move, don't I? If I get in an accident, they might deny the claim.
Jeez...I hadn't thought of this. I should have arranged it so I moved into a new house I bought.
I just sold my house and will be moving to a rental while house hunting for new house.
I did an online quote to see how that would affect my insurance, and it increases my premium a LOT! I guess because (1) I will no longer be a homeowner; and (2) I haven't lived in that rental for long.
I guess I have to report the move, don't I? If I get in an accident, they might deny the claim.
Jeez...I hadn't thought of this. I should have arranged it so I moved into a new house I bought.
Have you canceled your Homeowners policy yet (and do you have your car insured with the same company)?
If you are moving to a different zip code, that may have a greater effect on your rate than whether you own or rent a home. I’ve seen significant increases when people have moved just a few miles. If you have a garage at the house you just sold but don’t at your rental home, that also could increase the rate (cars parked in a garage overnight are protected from weather events, vandalism and theft).
You definitely need to tell your insurance company about the move. Your state most likely requires you change your car registration and driver’s license within 30 days to your new address. The insurance company could find out through one of those sources, but you want to voluntary report it before that happens.
You are correct, if you don’t report your change of address, your insurer could deny a claim on that basis. Some of the better companies would still pay the claim, but they aren’t obligated to do so if you don’t report the change to them. You don’t want to be in that situation.
I would contact my agent/company to let them know about the move and that you are currently house shopping. Now would also be a great time to get quotes from a few other insurers. I highly recommend (and J.D. Power & Assoc and/or Consumer Reports agrees with me)- AMICA, Auto-Owners (sold by Independent Agents in 26 states, you can go to their website to see if it is available where you live- auto-owners.com), Travelers and The Hartford. Definitely get a quote from at least one independent agency (even if auto-owners isn’t available in your state) because they have multiple options and many very good (especially regional) insurance companies are sold exclusively through the independent agency network.
One final thought, you should consider a Renter’s Policy while you are renting a home. This provides coverage for your Personal Property (your belongings) and includes Liability coverage also. The multi-policy discount you get on your Auto policy will make a Renter’s policy very inexpensive.
Definitely report it. I don't know laws in other states, but the state I'm in doesn't allow premium changes mid-policy. In other words if you own your home in a neighborhood with a lower crime / claim rate and the week after sell the house and rent something in a high crime / claim rate, we can't change your rate until you come up for renewal. So letting them know you've moved, if that is the law in your state, won't change what you currently pay, though you may see a change at renewal other than the standard annual increase.
Definitely report it. I don't know laws in other states, but the state I'm in doesn't allow premium changes mid-policy. In other words if you own your home in a neighborhood with a lower crime / claim rate and the week after sell the house and rent something in a high crime / claim rate, we can't change your rate until you come up for renewal. So letting them know you've moved, if that is the law in your state, won't change what you currently pay, though you may see a change at renewal other than the standard annual increase.
I'll have to change. The city I'm moving to is in same state, but the rental is across the border in another state (my family found me a cheap rental near them to stay in while house hunting in my state).
I don't plan on changing my registration and driver's license because that would have to be in the rental state, and then change it again to the state I'm moving to. I think I'd also have to provide a certified copy of birth certificate to get a new DL issued in one state or the other, and that would take me six weeks to get, anyway, since I don't have one.
The rental is in Louisiana. I'd have to:
register my car in Louisiana (that would take time)
Only then could I get a La. driver's license. What I have to do to get a La. driver's license:
Take a Driver's Ed course (8 hours) or 6 hrs of driving instruction
Present a "clearance" letter from state my current DL is from, showing I have a clear record
Pass a written and vision test and apply in person
Provide proof of Louisiana auto ins.
Provide cert copy of birth certificate
By the time I did all that, if I'm able to, it'd be time to move into the new house I've bought in Texas.
EDIT: Okay, I did some reading up on that on the internet. Seems you only have to get a new DL within 30 days of becoming a "resident," a "resident" is someone who intends on making that state one's permanent residence. So I don't have to get a new DL, seems like. Which means I can't get auto ins for that state, since you need a DL for that state. I will still technically be a resident of my home state. Seems like. I don't know. I'll talk to my ins. co. I guess.
I told my ins. co. Cancelled my HO's and told them about the rental. She said the ins. would remain in effect, since I'm not establishing residence there. But she needed a TX address for the file, even tho she knows I won't be living there. So I gave a friend's address (with permission).
She didn't mention increase in premium (it IS renewal time). I'm stuck, if they do that. If they do that, I won't get my HO from then when I buy my house, and I'll switch my auto isn., too.
I won't have a garage, but I wouldn't have a theft there, since there won't be anything to steal. Theft is not a big problem there. My neighbor is a relative who has guns....I have a gun. We all have guns there. There's no hail there. I think it's low risk. So I'm not worried.
Phew. That's a load off my mind. All these details to think of. Thanks so much for all your suggestions. (I will check into the renter's ins., though. I won't have much there, but it'd be a shame to lose it.)
I told my ins. co. Cancelled my HO's and told them about the rental. She said the ins. would remain in effect, since I'm not establishing residence there. But she needed a TX address for the file, even tho she knows I won't be living there. So I gave a friend's address (with permission).
She didn't mention increase in premium (it IS renewal time). I'm stuck, if they do that. If they do that, I won't get my HO from then when I buy my house, and I'll switch my auto isn., too.
I won't have a garage, but I wouldn't have a theft there, since there won't be anything to steal. Theft is not a big problem there. My neighbor is a relative who has guns....I have a gun. We all have guns there. There's no hail there. I think it's low risk. So I'm not worried.
Phew. That's a load off my mind. All these details to think of. Thanks so much for all your suggestions. (I will check into the renter's ins., though. I won't have much there, but it'd be a shame to lose it.)
Glad to hear that things went well when you spoke with your insurance agent/company. Be sure to make a note of when you notified, who you spoke with and the date and time of the call. I'm not trying to make you paranoid, but it's ALWAYS a good idea to notate any conversations you have with anything financial or legal related.
When is your renewal? I'm assuming that they'll mail your renewal to the friend's address in TX? Hopefully you won't see a significant premium increase.
After reading your posting originally, I did some research. I recalled reading an article ranking the cost of auto insurance all 50 states (and DC).
Louisiana is the 4th most expensive (after Michigan, Montana and New Jersey). Michigan and New Jersey are understandable, but Montana? Texas is #13 on the list, which is still pretty high on the list, but the average premium was 22% less compared to Louisiana.
That would explain, at least partially, why the quote for LA was so much higher than your existing rate from TX. Your status change from a homeowner to a renter played a minor role, but overall auto insurance simply costs more in Louisiana than in Texas.
The cost difference between states is one of the reasons that I think auto insurance should be federally regulated. Right now, it comes down to whether state regulators are doing their job or not. The Texas Department of Insurance and Georgia Insurance Commissioner (my state) are known for being vigilant about protecting consumers from unfair and unjustified rate increases. But many other states aren’t so fortunate. Texas has actually fined insurance companies for bad faith and other violations more than any other state in the country! =)
Even though Texas is the 13th most expensive state for auto insurance (Georgia is actually #12), the cost actually represents the risk. In Georgia, we’ve had a lot of hail damage claims in the last few years. That and high theft rates in some areas of metro Atlanta are the main reasons that we pay more than folks in 38 other states. In Texas, I’m thinking that tornadoes in parts of the state (and severe hail/wind storms) and theft rates along the border and in large cities are the reason that it’s #13.
Glad to hear that things went well when you spoke with your insurance agent/company. Be sure to make a note of when you notified, who you spoke with and the date and time of the call. I'm not trying to make you paranoid, but it's ALWAYS a good idea to notate any conversations you have with anything financial or legal related.
When is your renewal? I'm assuming that they'll mail your renewal to the friend's address in TX? Hopefully you won't see a significant premium increase.
After reading your posting originally, I did some research. I recalled reading an article ranking the cost of auto insurance all 50 states (and DC).
Louisiana is the 4th most expensive (after Michigan, Montana and New Jersey). Michigan and New Jersey are understandable, but Montana? Texas is #13 on the list, which is still pretty high on the list, but the average premium was 22% less compared to Louisiana.
That would explain, at least partially, why the quote for LA was so much higher than your existing rate from TX. Your status change from a homeowner to a renter played a minor role, but overall auto insurance simply costs more in Louisiana than in Texas.
The cost difference between states is one of the reasons that I think auto insurance should be federally regulated. Right now, it comes down to whether state regulators are doing their job or not. The Texas Department of Insurance and Georgia Insurance Commissioner (my state) are known for being vigilant about protecting consumers from unfair and unjustified rate increases. But many other states aren’t so fortunate. Texas has actually fined insurance companies for bad faith and other violations more than any other state in the country! =)
Even though Texas is the 13th most expensive state for auto insurance (Georgia is actually #12), the cost actually represents the risk. In Georgia, we’ve had a lot of hail damage claims in the last few years. That and high theft rates in some areas of metro Atlanta are the main reasons that we pay more than folks in 38 other states. In Texas, I’m thinking that tornadoes in parts of the state (and severe hail/wind storms) and theft rates along the border and in large cities are the reason that it’s #13.
Good thinking about the notation. I sort of have that, since she and I also followed up that day with an email, in which I give her the TX address for the auto ins. and confirm cancelling HO ins. But it was to the office, so I'll note her name and a brief description of our conversation.
Notice for renewal - I already rec'd it. It'll be automatically paid end of April.
State rates - Good research on the rates. As for why it's so high, I do think being a renter had something to do with it, but also...La. is a natural disaster state, and that region is particularly so. If you think houses are destroyed by hurricanes and flooding, cars are more so. But I was surprised since I live in a large state, and we have hail here.
You have to take driver's ed in Louisiana if you move there from out of state with a live license and want a license from there?
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