What Happens to Your Insurance When You Move States?

It won’t be a surprise to anyone in the military that you and your family move often, sometimes with little notice. It’s just a fact that military families move more than any other group in the country, every two to three years. Over a career, that could be six to 10 major household moves. Each move brings new schools, homes, and child care arrangements. However, many families overlook the changes to their home and auto insurance.

Because insurance is there to safeguard you and your family from financial loss, it’s important to know what happens to your insurance when you move, especially across state lines.

What Changes when You Move States

Insurance is regulated at the state level, meaning each state sets its own rules for required coverage and minimum coverage limits. Your current policy may comply with your current state, but it falls short in your new state.

A Permanent Change of Station (PCS) move is a great time to review your auto and home insurance policy. There will be differences in coverage and costs from state to state. So, you will want to ensure you are covered during your move and once you’re settled into your new home.

Some insurance companies provide a short grace period, usually 30 days, to update your policy after you move. Ask your insurance company as soon as you know you are going to move to confirm their policy and review requirements in your new duty location. 

Insurance Coverage in Common Military Duty Station Locations

Because home and auto insurance coverage is regulated by each state, coverage and costs differ greatly across common military duty station locations such as California, Florida, and Texas. 

According to Insurance.com, insurance rates in Florida are often driven by natural disasters, such as hurricanes and flooding. Other states require high costs due to strict regulations and high litigation rates. Recent wildfires and other disasters in Texas have driven up insurance rates. As of 2024 (the most recent data available) Texas homeowners pay an average of $1,900 per year versus the U.S. average of $1,200 according to the Federal Reserve Bank of Dallas.

On the other hand, according to U.S. News and World Report, some states with large military installations, like Ohio and Hawaii, offer some of the lowest insurance rates. Moving from one duty location to another can have a major impact on your insurance bill, for better or worse. 

Auto Insurance Changes

States differ in their minimum requirements for liability and uninsured/underinsured motorist coverage. Collision and comprehensive coverage requirements are typically determined by lenders or vehicle owners. For example, consider a PCS move from Wright-Patterson Air Force Base in Ohio to Edwards Air Force Base in California:

California: You will need the vehicle’s title, proof of insurance, a valid smog certificate (if required), and payment for registration fees. 

Ohio: You will need proof of ownership, valid identification, proof of insurance, and a Vehicle Identification Number (VIN) inspection if you are bringing the vehicle to Ohio from out of state. 

How much is auto insurance?

Average auto insurance costs: 

• Ohio: $1,842 annually
• California: $3,119 annually

Renters and Homeowners Insurance Changes

Your new home will bring new risk factors, which affect your renters and homeowners insurance coverage and premiums. If you stay with the same insurance company, they will need to write a new policy for the new home. You just need to ensure the new policy is active at closing. For renters insurance, you will just need to update your policy to your new address.

Using the same PCS example:

Renters Insurance* (recommended: $100,000 liability)

• Ohio: $203.91/year
• California: $202.37/year

Homeowners Insurance** ($500,000 replacement value)

• Greene County, Ohio: $2,787/year
• Kern County, California: $1,936/year

Source: Insurance.com*

Source: U.S. News and World Report**

When You Need a New Policy

Home and Renters Insurance

Because every home is unique, you will need a new home insurance policy. Depending on your insurance company, you may be able to use them at your new home. Just know that not all insurance companies or agents are licensed to write policies in all states. So PCSing to a new state could mean big changes in your home or renters policy. Check with your agent to see if they can continue to serve you. 

If you go from on-base housing to buying a home off base, you will have to switch from renters insurance to homeowners insurance. 

Auto Insurance

If you are insured by one of the major insurance companies that operate nationally, you will need a new policy, but your agent can work with you on making the transition from your current location to your new duty assignment. 

If you have a local insurance company that does not operate in your new duty location, you will have to shop around and find a new auto insurance company. This is a great time to shop for rates.

How PCS Moves Complicate Things

If a PCS move was not stressful enough, your move complicates your insurance situation by creating a temporary, high-risk period where you may own two homes, have to transport your household goods across state lines, and drive your car across several states before you set up your new home. This could result in potential coverage gaps and temporary overlap. 

The best way to prevent any gaps is to notify your insurer of your move 30 to 60 days in advance and update your policies to maintain coverage. Your auto insurance may not apply in your new location, and could prevent you from making a claim if you were in an accident.

Your current policy won’t apply to your new home, so you will need a brand-new policy. Depending on the area, your premiums could increase to cover new risks.

Short Term Housing

During your move, you are likely to be in temporary lodging. Your current homeowner’s insurance may not cover your personal belongings during your stay in temporary lodging. You may want to set up a new homeowners or short-term renters insurance policy to be safe. Ask your insurance agent if you can get a rider to your current homeowners policy, or if you would need to take out a separate policy.  

Common Mistakes

Here are a few common mistakes military families make when updating insurance when moving to a new state:

• Letting your policy lapse: Always overlap your old and new policies by at least one day to avoid coverage gaps or being underinsured.
• Assuming that your coverage automatically transfers: Old coverage may not meet the new state’s minimums.
• Not updating your current address: This affects rates, coverage, claims, and the ability to register your car in the new state.
• Forgetting to cancel old insurance: You will still be billed, even after you have moved.
• Not comparing quotes when reviewing or renewing policies: A little research can save you hundreds.

Bottom Line

Moving is part of military life, but navigating insurance doesn’t have to add to the stress. Reduce that stress by reviewing your insurance policies early, asking your agent for advice, and comparing your options before you move. Whether you’re updating auto insurance to meet a new state’s minimum coverage, selecting the best renters or homeowners policy for your next duty location, or making sure you’re covered during the move, a little preparation goes a long way.

With the right coverage in place, you can start your life at your next assignment confident that your family, your home, and your car are protected.