Moving in Arizona? Here’s How Your Car Insurance Will Change 

July 14, 2022
red car in front of arizona landscape

What if moving to Arizona was suddenly more expensive than you thought? 

We generally expect many expenses related to moving. However, what few people expect is for their car insurance to change. If this happens, it can affect how much you have to pay from month to month. 

How is your Arizona auto insurance going to be different after you move? What should you expect, and how can you manage to get cheap car insurance in Arizona? Keep reading to discover the answers! 

How Auto Insurance Changes When You Move 

You’ll have to change your car insurance when you move to Arizona. Will it be more expensive? It all comes down to what the car insurance requirements were like in your former state.  

Another thing to consider is whether you have insurance with a company that is licensed to do business in your new state. If not, you’ll have to switch companies.  

Keep in mind that each state has its own minimum insurance requirements. If your former state had lower minimum insurance requirements than Arizona, you may have to get more insurance. If your former state had higher insurance requirements than Arizona, then yay! You’ll be likely paying less – if all other factors are equal. 

Even if you don’t have to change your insurance company, you may want to take this opportunity to get new insurance. This could be your chance to get both better coverage and a better monthly premium. 

Additionally, insurance can change even when you move within the state. Even moving to a new area of the city can affect your premium! 

Why Does Moving to or Within Arizona Change My Insurance? 

Every state has minimum mandatory insurance requirements. This is typically liability coverage, and the minimum amount varies from state to state. 

Liability insurance only pays out when someone is at fault in a car or motorcycle accident. This coverage helps the driver pay for any bodily and property damage that they cause. 

States require this coverage so drivers don’t have to worry about getting hit by careless drivers and then getting stuck with medical bills or repair bills. How much liability coverage each driver must have can change from state to state. Therefore, it’s important to check the requirements of a new state before you move. 

Why, though, does insurance change if you simply move somewhere else in the state? Your insurance carrier looks at different factors before setting your premium, including how many claims get filed in an area. If you move to an area where many more claims are filed each year, it can affect your premium. 

Insurance Needs to be Updated Within 30 Days of Registration 

You don’t have to switch your car insurance right away after moving to Arizona. After you register your car in Arizona, you have 30 days to get insurance. 

This grace period can be useful in many ways. For example, it gives you time to complete your move, maybe explore a little and get settled in before you finalize your insurance. 

It also gives you time to fully explore different insurance options. When you don’t have to rush things, you have time to explore insurance options best for you, your car, and your family. 

Can I Keep My Old Car Insurance After I’ve Moved to Arizona? 

You may or may not be able to use your old car insurance after you move to a new state. It all depends on whether your old car insurance carrier operates in the new state. 

For example, the state of Arizona requires that you get car insurance through a company licensed to do business within the state. If your current carrier does not operate in Arizona, you will need to find new insurance before your grace period is up. 

If you will not be using your car immediately after moving, you should consider de-insuring your vehicle. 

What Is De-Insurance? 

De-insuring your vehicle means removing the insurance requirement for your vehicle. This is a temporary status, and you must obtain at least the minimum required insurance before you begin driving again. 

In Arizona, it is easy to de-insure your vehicle online. However, de-insuring is usually only necessary in certain situations. For example, military personnel often need to de-insure a vehicle. Some drivers de-insure cars that are undergoing a more long-term repair or restoration. 

If you de-insure a vehicle after you move to Arizona, it is important to understand all of the state’s insurance requirements before you get your vehicle insured again. 

Arizona’s Minimum Car Insurance Requirements 

Arizona requires all drivers to have a minimum of liability coverage in the following amounts: $25,000 bodily injury liability for one person, $50,000 bodily injury liability for two or more people, and $15,000 property damage liability. 

These amounts represent specific coverage limits. So if you only have the minimum coverage and are at fault for an accident that does more than $15,000 in property damage, you will have to pay for the rest of the damage out of pocket. 

It is possible to get higher liability coverage limits to reduce your out-of-pocket risk in the event of a car accident. It is also possible to get other forms of insurance (including collision coverage and comprehensive coverage) to further protect your vehicle. 

young african american woman driving car smiling

Should I Stick with Minimum Insurance in Arizona? 

Most drivers are better off getting more than the minimum insurance required by a state. Getting additional insurance puts you at less of a financial liability in a variety of different accident scenarios. 

For example, we already touched on what happens if you are at fault in an accident and only have the minimum liability insurance. If you cause more damage than those minimum coverage amounts, you will be on the hook for potentially thousands of dollars. If another driver gets injured, their medical bills alone may quickly go higher than the minimum coverage amount you have. 

Additionally, your liability coverage only pays for the damage you cause and it pays nothing to help you repair your vehicle. If you add collision insurance, then you will have coverage for your vehicle even if you are at fault. Collision insurance can also help out if someone else causes an accident and their own insurance is insufficient to pay for the damages (or, worse yet, they have no insurance at all). 

Finally, you may wish to consider comprehensive insurance depending on where you move in Arizona. This type of coverage protects your car when you are not driving it. For example, it can protect your car from theft, vandalism, and certain forms of natural damage. 

Contact Your Old Insurance Company After You Get New Car Insurance in Arizona 

If you get new car insurance before or after your move, you will need to contact your old insurance carrier. They will be able to verify that your old plan is canceled and tell you what the effective end date is on your old policy. 

Understanding the end date for your policy is particularly important. While Arizona provides a 30-day grace period to get new insurance after you register your vehicle, your vehicle must still be covered by your original insurance company. Therefore, to take full advantage of the grace period, you need to make sure that the effective end date is far enough past the date that you complete your move and register your vehicle. 

Additionally, contacting your old insurance company provides a great opportunity to make sure you don’t have any required paperwork or anything else you need to deal with. That’s the last thing you want to worry about after making your move! 

How to Find the Best Car Insurance in Arizona 

Generally, the best way to find new car insurance is to shop around and get multiple quotes from multiple carriers. As long as all of the carriers do business in Arizona, this helps you discover the best insurance policy for your particular needs. 

The main thing you want to look at is how much your monthly premium will be for the coverage you need. Negotiating the best monthly premium can help you save hundreds or even thousands of dollars over time. 

However, you should also look into whether certain insurance carriers offer other insurance you may need (such as renters insurance or homeowners insurance) because you may be able to bundle and save. You can also ask about special discounts that can help you get the cheap car insurance in Arizona you deserve. 

Get the Best Cheap Car Insurance in Arizona Today! 

Now you know how moving to Arizona or even moving in Arizona can affect your car insurance. But do you know where to find the best cheap car insurance in Arizona? 

Here at Oasis Insurance, we make car insurance easy, convenient, and affordable. To get started, feel free to request a quote for auto insurance online or visit us at a convenient local office. You can also give us a call at 800-330-5190 today! 

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