How does car insurance work when you move out?
As the title suggests, I (20) recently moved from Illinois to Michigan, leaving my childhood home to live with my boyfriend and his mom, along with their roommate. Currently, I’m on my parents’ State Farm policy. Our roommate mentioned that in Michigan, there’s a law requiring you to be under the primary household member’s insurance, which would be my boyfriend’s mom. Is that true?
I understand that once my policy with State Farm expires, I will no longer be covered under my parents’ plan, and I’ll need to either get my own insurance or join my boyfriend’s mom’s policy. Which option would be better? I’m not very familiar with how car insurance works since my parents handled everything and I just sent my mom my share each month. I appreciate any advice you can offer! Thanks!
When you move out and into a new household, there are a few important factors to consider regarding car insurance. Here’s a breakdown of how it typically works:
Changing Policies: If you’re moving from Illinois to Michigan, you’ll most likely need to update your car insurance. It’s generally recommended to have your car insured in the state where you reside. In Michigan, auto insurance laws are quite different from those in Illinois, and Michigan has a unique no-fault insurance system.
Household Policies: While it’s not a strict law that you must be on the head of the household’s insurance policy, insurers often prefer that all drivers living in the same household be listed on the same policy. This is to ensure that everyone who might drive the car is covered. However, you do have the option to stay on your parents’ policy for a limited time, but that may not provide the best coverage or rates.
Options for Coverage: You can either:
Get your own insurance when the time comes. This will likely be more expensive as a new driver, but you’ll want to shop around for rates.
Rate Factors: In Michigan, insurance can be high due to the state’s no-fault laws, so the rates can vary significantly depending on the coverage options you choose, your driving record, and who you’re insured with.
Talk to an Agent: Since car insurance can be complicated, it’s a good idea to speak directly with an insurance agent to understand the best option for your specific situation. They can provide guidance tailored to your new circumstances and help you find the most cost-effective solution.
Make sure to notify your current insurer about your move and any changes to your living situation as soon as possible to avoid any issues with coverage. Good luck!