Discover How to Handle Insurance When Moving to California from Another State
If you’re moving to the Golden State, let us be the first to welcome you. Moving from one state to another involves a lengthy list of requirements, making it easy to overlook critical responsibilities like shopping for car insurance and switching your insurance when moving to California.
From auto insurance minimums and health plan options to renter’s insurance in California, understanding California insurance requirements and market nuances is vital to complying with legal regulations. We’re here to help with the process of getting good coverage to protect your car, home, possessions, and health without worrying about missed deadlines.
Understanding Insurance Requirements in California
While you may choose to invest in various insurance policies to protect your assets, you’re required to have health insurance and car insurance in California.
In 2020, California passed a mandate requiring residents to have qualifying health insurance. Those who go uninsured have to pay a penalty when filing their annual tax return. Penalties for an individual can be up to $900, and those for a family of four can be up to $2,700.
Californians are also required to carry an auto insurance policy that meets the requirements for liability coverage in California. Failure to show proof of insurance can result in costly fines and license suspension.
Common Mistakes New Residents Should Avoid
The chaos of moving to a new state can make it easy to make mistakes when investing in the insurance policies you need for protection. Avoid these common mistakes when purchasing insurance when moving to California.
- Canceling auto insurance before moving and getting a new policy (leaving you uninsured while moving)
- Failing to understand the minimum insurance requirements in California
- Not shopping around to compare rates
- Waiting too long to get insurance
- Only getting minimum liability auto coverage
- Failing to read the policy and understand your coverage
- Not considering add-ons that apply to your life circumstances or local conditions
- Overlooking the value of homeowners’ or renters’ insurance
Health Insurance Considerations
California residents are required to carry health insurance or pay a penalty when filing income taxes. Changing your health insurance is typically simple and can often be completed online. However, it’s crucial to act quickly to avoid missed deadlines for getting the coverage you need.
Enrolling After a Move: Special Enrollment Periods
Moving to California from another state is considered a qualifying life event that allows you to have a special enrollment period to apply for health insurance, perfect for timely insurance policy updates. The special enrollment period only lasts 60 days from the date of your move.
Failure to choose a plan and apply for coverage within this window will leave you without coverage until open enrollment in the fall and make you subject to penalties for a lapse in coverage.
You may qualify for free or very low-cost health insurance through the state’s ACA marketplace, Covered California. We’ll be happy to help walk you through all of the different plans and tiers at no cost to you. Just give us a call at 877-423-1543.
Auto Insurance Transition
To switch car insurance coverage in California without penalties, you must avoid a lapse in insurance coverage. As a new California resident, you’ll have 20 days to register your car with the DMV. During this time, you can compare California insurance brokers and companies for affordable policies that meet state auto insurance regulations and your coverage needs.
California’s Minimum Coverage Requirements
In California, all drivers must have an active insurance policy that meets state minimum liability requirements of $30,000 for injury or death to one person, $60,000 for injury or death to more than one person, and $15,000 for property damage.
While the state doesn’t require motorists to have full coverage, lenders often require California residents to carry additional coverage, including collision and comprehensive coverage, when making payments on a vehicle.
Homeowners and Renters Insurance Tips
The state doesn’t require homeowners’ or renters’ insurance. But California lenders and landlords often require residents to have coverage. Just as importantly, these policies are vital to protecting your home and possessions.
If you purchase a home in California, your lender will likely require you to invest in a home insurance policy before the financing agreement is finalized. Since you won’t cancel your existing policy until you vacate the property, you might have overlapping policies for a short period of time.
If you’ll be renting a house, condo, or apartment, your landlord will decide when your coverage should start, which is usually before the rental agreement is signed or on your official move-in date. If you’re not required to carry renters’ insurance, it’s still best to invest in a policy that begins on your first day on the premises.
Whether you rent or own, it’s critical to consider how your belongings will be protected during the move. In many cases, homeowners’ insurance will provide some coverage for possessions during the move. Renters’ insurance, on the other hand, only covers property in transit under certain circumstances (like theft).
If you’ve hired a moving company, investing in their moving insurance coverage can help you avoid coverage gaps during the move. Talk to your insurer before moving to make sure you’ll have the coverage you need.
Have more questions about insurance when moving to California? The California Department of Insurance provides a homeowners insurance checklist and several information guides to help residents learn about finding residential coverage.
Adjusting Your Homeowners Insurance for California Risks
When investing in home insurance in California, it’s essential to ensure your policy includes coverage for risks that may not be included in a typical policy. Earthquake, flood, mold, and earth movement are usually excluded from a typical homeowner’s policy. Wildfire coverage may also be difficult to obtain in some areas.
Understanding insurance terms and asking about add-ons is crucial to ensuring you get the coverage you need. Ask your insurance provider about exclusions in your policy and how you can avoid gaps in coverage.
Renters Insurance Requirements and Coverage
Renters’ insurance in California covers the cost to replace your possessions if they are damaged or destroyed in a covered event. It also provides financial protection if someone gets hurt on your property and loss-of-use coverage if your home becomes temporarily unavailable.
If you’ll be renting a home, your landlord may require you to carry renters’ insurance as part of the rental agreement. Depending on the terms of your agreement, you may have to take out a policy before signing the agreement or as soon as you move in.
Strategies for a Smooth Transition in Insurance When Moving to California
Managing insurance requirements during a move can quickly get complicated if you’re not prepared. Luckily, there are strategies you can use to ease the transition. The best way to get started is to talk to your current insurance provider. Notify them about your upcoming move and determine whether you can remain with the same company at your new home.
Once you’ve chosen the best path forward, these tips can help you smoothly transition your policies to meet your insurance needs in California.
- Use an insurance premium comparison tool to compare insurance quotes in California before your move or let a Cost-U-Less agent do it for you.
- Learn about insurance requirements in California before seeking coverage.
- Get necessary documents in order before applying for coverage.
- Make an appointment with the California DMV before your move to take care of your registration.
- Consider bundling home and auto insurance for discounts and convenience.
New to California? Get Your Insurance Set Up Today
If you’re moving to California, transferring your insurance doesn’t have to be a hassle. With ample knowledge and preparation, you can easily get the coverage you need. Cost-U-Less Insurance can help you simplify the process further with personalized quotes and answers to all your questions about insurance in California.
Ready to check insurance off your moving to California to-do list? Call (800) 390-4071, get a quote online, or visit a California location near you.
FAQs
How Long do I Have to Update My Car Insurance After Moving to California?
You have only 20 days to register your car with the DMV after officially establishing residency in California. When registering, you’ll need to provide proof of insurance.
Can I Keep My Out-Of-State Health Insurance After Relocating?
Since health insurance coverage is regulated at the state level, you usually cannot keep your out-of-state health insurance plan after moving. However, you will be allowed a special enrollment period for a smooth transition.
What Happens If I Delay Switching My Insurance After a Move?
Delays in switching insurance after a move can mean missing critical deadlines for required policies, which can lead to costly fines. For example, if you delay registering your vehicle and purchasing auto insurance, you’ll face steep fines if you get caught.
If you fail to get a health insurance policy during your special enrollment period, you won’t be able to get coverage until Open Enrollment. In any case, a delay in switching insurance can mean you won’t have coverage in the event of a disaster or health crisis.
