Military PCS and Car Insurance: What to Do Before You Move

Every year, over 260,000 military families move across the nation and around the world according to the Department of War. Any PCS relocation is disruptive and challenging to manage, especially when it comes to car insurance. Coverage requirements and premiums vary significantly by state, potentially leaving you underinsured or facing unexpected expenses. 

Let’s take a closer look at military PCS car insurance matters, including how PCS moves impact your rates, when you should notify your carrier, PCS car registration insurance rules, how to avoid coverage gaps, and special considerations for OCONUS PCS moves.

How PCS Moves Affect Your Car Insurance Rates

Moving from one state to another means you might encounter a completely different set of laws, accident rates, traffic conditions, population densities, and weather patterns. These changes can affect what you pay for insurance. In fact, a PCS move can have a big impact on your insurance bill based on many different factors, including:

Garaging Location

Insurance companies will set rates depending on the particular ZIP code where your vehicle is parked overnight. Moving from a quiet, safer small town to a bustling metropolitan area or big military installation can spike premiums due to higher risks of accidents or theft. 

“When you move to a new state, your insurer re-rates your policy based on your new garaging location,” Andrew Lokenauth, a personal finance expert, told The Military Wallet (TMW) in an interview. “Consider that urban bases in areas like San Diego or Northern Virginia will carry higher rates because of population density and accident frequency, while rural bases in locations like Western Oklahoma or central Kansas tend to bring lower premiums.”

State Coverage Requirements

Every state has its own legal minimums for liability and personal injury protection coverage. Your rates will rise if the state of your new duty station has stricter minimum requirements than your last one.

• Discounts on-base: Because parking your auto in a secured military installation reduces the risk of theft and vandalism, some insurers provide particular “on-base” garaging discounts.
• Registration versus location: The Servicemembers Civil Relief Act (SCRA) may permit you to keep the vehicle registration from your home state. But many carriers still require you to pay the premium based on the physical location where your vehicle is driven.
• Usage changes: A PCS can alter your daily work commute. If your new residence is much further from or closer to your unit, your new rate will reflect the change in your estimated annual mileage.

Prepare yourself: You may end up paying more for car insurance after a PCS move.

“I’ve seen service members face rate increases of 20% to 40% from a single PCS move – with zero change in their driving record,” Lokenauth said.

When You Should Notify Your Insurance Company

The experts recommend notifying your carrier as soon as possible, but at least 30 days before your move date.

“Don’t wait until you are to have boots on the ground. Contact your insurer the minute you have your orders. This will give you plenty of time to change your address and ensure you are covered in the new state without gaps,” Bruce Shields, Air Force veteran and founder of ABS Tag & Title, told TMW.

Michael Kruse, an attorney who often represents drivers on car insurance issues related to registration and compliance, says he has seen military members complete an entire PCS without ever alerting their insurer because they assumed that the move alone would not affect their rate – a big mistake.

“You want to contact your insurer well before the move. This gives you a good chance of knowing what the new address will cost you before it comes as a surprise,” Kruse said in an interview.

When reaching out to your carrier, be sure to do the following:

• Update your garaging address, 
• Confirm your new state’s minimum coverage requirements, and
• Inquire whether your current policy will transfer smoothly or if it needs to be rewritten.

“Get coverage dates confirmed in writing so that there’s no dispute about lapse periods or denied claims,” said Lokenauth. “The worst scenario is a gap between when your old state policy ends and your new one starts, and that window can open fast if you’re not ahead of it.”

Vehicle Registration and Insurance Rules for Military Members

Fortunately, the SCRA provides military members with the right to keep their home state vehicle registration.

“This matters because your home state may carry much lower rates,” adds Lokenauth.

However, Taylor Szostak cautions that the SCRA doesn’t prevent an insurer from adjusting its price. While SCRA may help with domicile and registration issues, insurers generally still rate based on where the vehicle is primarily kept and state-specific rules still matter.

“The insurer will change its price according to the risk model,” Szostak, a certified Military Relocation Specialist, founder of SanDiegoMilitaryRE.com, and spouse of an active-duty military member, told The Military Wallet (TMW) in an interview.

Rami Sneineh, owner and licensed insurance producer at Insurance Navy Brokers, echoes those thoughts.

Szostak warns that the biggest mistake you can make here is having a coverage gap.

“Interrupting coverage, even for a short time, can cause you to be classified as a higher risk later,” said Szostak.

Remember, too, that rules can differ from state to state, and some states require carriers to use the garaging location for rating – regardless of your legal domicile. That’s why it’s smart to contact your installation’s legal assistance office before assuming SCRA protections apply to your case when it comes to insurance rates.

Avoiding Coverage Gaps During a PCS

To prevent gaps in auto insurance coverage during or after a PCS move, follow these recommended tips:

1. Confirm your current policy’s end date and your new policy’s start date.
2. Update your address with your carrier before the move, not after, to make sure your rates and coverage are accurate for your new location. (Don’t forget to shop around)
3. Confirm your new state’s minimum liability requirements so that your new policy aligns with these requirements on day one. “If your car will not be used at all, check that you have at least a bare minimum insurance coverage in place,” said Shields.
4. If you have a car loan, confirm with your lender that your new state’s policy still meets their specific coverage requirements.
5. Ask about “in-transit” coverage to learn if you need a temporary endorsement, in the event your car is being shipped by a third-party carrier.
6. Verify registration vs. garaging rules to guarantee that your coverage remains valid even if you maintain your vehicle registration in your home state.
7. Ask your carrier whether there are any waiting periods or if changing your address would trigger a reevaluation of your current rate.
8. Get everything confirmed in writing before you move so you have a paper trail.
9. Keep copies of your orders in all transactions as proof of your relocation for your insurance provider.

Special Considerations for OCONUS PCS Moves

Preparing to move outside of the Continental United States (OCONUS)? It’s important to be aware of related rights, laws, and restrictions. Your three biggest car insurance concerns are storage coverage, liability decisions, and vehicle shipping. That is why you must research OCONUS car insurance options.

“If you are leaving a vehicle behind in the United States, consider switching to a comprehensive-only storage policy instead of canceling coverage outright. That keeps your coverage history intact and protects against theft, fire, and weather damage,” said Lokenauth.

Be aware, however, of storage policy issues that can leave your vehicle unprotected.

“For example, your insurance policy may exclude damage caused by rodents or corrosion that builds upon long-term storage stateside,” said Kruse.

If you are shipping a vehicle overseas, verify that your personal auto policy covers transit. Many policies do not, which means you could need separate marine cargo insurance for the shipping portion.

“Shipping a car requires temporary maritime insurance, since such insurance is not frequently a part of standard domestic policies regarding ocean ships,” said Sneineh. “I have actually seen drivers lose the value of their entire vehicle because they assumed their American plan followed them to Europe. You should always ask your shipping company specific questions about what their liabilities are before your vehicle leaves the port.”

Kruse says it’s also important to carefully time any cancellation of coverage on your vehicle prior to your ship date.

“Canceling your liability coverage too early will put a lapse flag on your record that could still be visible when you try to reinstate your auto insurance coverage on the other side of your move,” Kruse said.

Additionally, once you are overseas, keep in mind that some “bases require having host-nation insurance coverage,” continues Lokenauth. But your US policy won’t always satisfy that requirement. So be sure to budget for it ahead of time.

PCS Insurance Checklist

To make your PCS move and its effect on insurance easier, we’ve created a handy checklist you can follow, below:

Step	Action	Timing
1	Notify your current insurer of the upcoming PCS	30+ days before move
2	Confirm current policy end date and coverage details	30 days before move
3	Research new state minimum coverage requirements	30 days before move
4	Get 3+ quotes from car insurers in your new state	21+ days before move
5	Select a new policy and align the start date with the PCS date	Before the move date
6	Update the garaging address with your current insurer	On or before the move date
7	Update vehicle registration in the new state if required	Within 30-90 days of arrival
8	Review SCRA* domicile protections with legal assistance	Before any registration change
9	Get written coverage confirmation from the insurer	Before the move is complete
10	Review deployment and storage options if the deployment follows PCS	As soon as orders are known

The Bottom Line

Don’t treat car insurance as an afterthought when you’re preparing for a PCS. There are a lot of details you’ll need to handle before such a move, but give priority to proper coverage. To avoid a costly lapse in car insurance when moving states, military members are encouraged to notify their current carrier as soon as they receive official orders. Take the time to ask questions, research carriers and coverages as needed, and prevent costly gaps you’ll regret.