Insurance Question....?

Question

So... I had a 1998 VW beetle that I traded in today for a 2003 VW beetle. I purchased this car in the state that I am currently in for college (MD). In order to purchase the car I had to get a MD tag. My old car is insured under Farm Bureau in NC. Can I transfer my old insurance to cover this car? I am not a Maryland resident, but NC resident. Any help/advise is greatly appreciated.

My 98 beetle was in great shape, but the newer car had more additives like sunroof/less miles etc.... The difference was around $5000 that I am having to pay.. Because of the financing I had to get MD tag and such.. Thanks in advance for your help!

Answer 1

No.  For MD tags, you need an MD insurance policy.  Insurance policies are highly regulated by each state, and you can't "transfer" a policy to a new state - it has to be rewritten.  If your old agent is ALSO licensed in MD, it won't be hard to do - but that's pretty remote.  

You're either going to have to talk to your old agent, about how to get NC tags on the car, or get that MD insurance policy.

Answer 2

As long as the insurance company operates in your current state it shouldn't be a problem.   Although your residence is in NC, they also take in consideration where the car is being garaged.

Answer 3

Farm Bureau is a domestic carrier.

That means each state is it's own company.  In order to have insurance with NCFB, your car has to be principally garaged in NC.  They do NOT insure cars that are principally garaged in other states. NCFB does NOT do business in MD.

North Carolina Farm Bureau is a separate company from South Carolina Farm Bureau. Where as, Allstate is an international carrier -- it's the same company for each state.

Seems like a small difference -- but it's an important one.

Here's some questions to consider:

Do you live in a dorm or do you have an apartment?

Do you live in MD year round or only during the school year?

What state do you file taxes in?

What state is the car registered in?

What state is the car tag from?

Do you pay property taxes in MD or NC on the car?

If you are living in MD full time - working in MD - then you are  a resident of MD.

If you are living in a dorm and return home each summer to live with your parents -then you will still be considered a resident of your parents home in NC.

Why does this matter?

If you have a wreck in MD.  And NCFB determines that you were dishonest on your insurance application and are a resident of MD -- not NC -- they can - and will - deny coverage for your accident. You will get a refund for the premium you paid and you will be personally responsible for any injuries/damages you caused.

You are not considered a resident of NC just because you say so. You have to prove that you are a resident of NC and not MD.

Your best bet is to call your insurance agent - and let him know exactly what your situation is.  DO NOT LIE OR MISLEAD.   He will tell you if you can transfer the policy or if you need to contact MDFB and get a policy with them.

Insurance in NC is cheaper than insurance in MD.  When you are a resident of MD and get a policy in NC -- that is a form of insurance fraud called "rate jumping".  I can tell you  now, insurance companies are well aware of rate jumping. Especially domestic carriers who only insure one state.

Answer 4

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