Moving To A No-Fault State? What Are Your Insurance Options?
Posted on: 28 September 2016
If you've recently decided to move to a new state, you're likely already making arrangements to have your mail forwarded, your bank billing information changed, and your utilities and cable service transferred over to your new home. While registering your vehicle and getting a new driver's license may also be in your plans, when you're moving from a state with the traditional fault structure to a no-fault state, there can be some additional factors to consider. Read on to learn more about the nuances of moving to a no-fault state, as well as what you can do to best protect yourself and your property.
What are the differences in coverage between a fault and no-fault state?
The primary difference between these coverage structures, as implied by their names, lies in the assessment of fault. In a traditional fault state, when two drivers are involved in a collision and only one is at fault, the insurer of the responsible person will cover both the collision damage to the other driver's vehicle and the damage to the insured's vehicle; following the accident, the insured at fault is likely to see a significant increase in his or her premiums.
In a no-fault state, each driver involved in an accident (regardless of fault) is required to pay his or her own repairs and medical expenses. This can sometimes make no-fault auto insurance more expensive, but it also means you won't be financially penalized (or even dropped from your insurance plan) for being involved in an accident. If you're not at fault in an accident, you'll also be able to rest assured that you'll be dealing only with your own insurance company, not the other driver's.
What should you do after moving to a no-fault state?
Most no-fault states provide a grace period of a few weeks to a few months after moving to the state to register your vehicle and change your insurance policy. Although you'll often be able to stay with your current insurer (if they offer coverage in your new state), you will need to switch from traditional fault to no-fault insurance to ensure you're adequately covered if you're involved in an accident. Failure to switch your insurance during the grace period could mean that you'll bear the costs of a later accident yourself, even if you weren't at fault.
If you're worried about the potential for an increase in your insurance costs after moving, you may want to investigate programs that can help you lower your risk -- and therefore your premium costs. One of the basic premises behind no fault insurance is that many not-at-fault accidents can still be avoided with defensive driving, so taking courses to prove that you know the basics of defensive driving can lower your risk of an accident. Contact a company like Northeast Insurance Agency for more information about your options.
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