Moving to a new state can be a stressful experience. If you have a car that is financially sufficient, you can usually move the vehicle through state roads as long as your loan agreement has no other regulations. However, you may have problems preparing and registering the car in a new state because of different insurance and ownership requirements. Consider the various issues you may have when moving a funded car out of state so you can plan ahead.
Can You Move a Financed Car Across State Lines?
Lenders and State Rules
Before you move out of state, check the requirements of the state’s old motor vehicle facility, the state’s new motor vehicle department, and your lender. As long as you maintain full coverage claims throughout the loan term and update your address information, you can move your car. However, many states require new residents to apply for a driver’s license within 30 to 45 days of residence. Since you have a new driver’s license, you’ll have to change your name and register your vehicle in the state in which you reside, which is not an easy transition in some states.
Transfer of ownership and registration of vehicles
You cannot keep your car named in the same state after you request residency in the new state. Depending on the state you move to, you may have to refine-fund the vehicle if your current lender (the mortgage holder) is not licensed to operate in your state. On the move, many states require previous drivers to return their license plates. If you don’t plan ahead, you may find yourself unable to transfer ownership and register your vehicle before finding a new holding owner licensed for business in your state.
Car insurance
As long as you maintain full coverage with the right limits and deductibles, you won’t default on your loan. However, when you change your driver’s license to a new state, you must also transfer your insurance policy to a new address. Since you will have to change the address of your current policy or transfer your policy to a licensed provider operating in your new state, your insurance provider will electronically update your policy with your old state’s motor vehicle facility. To avoid a fine, you must cancel your registration immediately or return the license plate, depending on the request of the old state.
Exceptions and possible penalties
If your state allows temporary non-residency, you can move to another state and keep your vehicle registered, titled, and insured in your former state. Non-resident drivers are eligible to include college students or military personnel, so check with the state’s motor vehicle facility if you think you may be eligible. Many states impose fines on new residents who fail to obtain a driver’s license or rebrand their vehicle for a certain number of days from the date of travel. Depending on your former state’s regulations, you may see your driver’s license suspended if you don’t cancel your registration after you move out. You cannot apply for a driver’s license in another state once another state has issued a suspension order.