# Moving a Leased Vehicle to A Different State



## Canhouter (Oct 29, 2013)

Hello,

I might be relocating to Atlanta, GA from Lyndhurst, NJ due to a new assignment. Is it possible to find out what my new lease payments will be? Whom do I have to contact to find this out? Anything special I need to keep in mind for Georgia? How does the procedure work? What happens to the taxes? I have paid NJ taxes upfront at the beginning of the lease to avoid interest.

Any advice is appreciated. Thanks.


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## kyfdx (Aug 4, 2003)

I don't have the answer, but a couple of notes..

GA now taxes the full purchase price.. not sure how that will affect you, moving into that state, though.

The full sales tax in NJ is paid to the state, upfront, whether you pay upfront or not.. If you roll that amount into the CAP cost, the bank still pays the tax upfront. So, that is a distinction without a difference.


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## jagu (Nov 7, 2006)

Georgia now charges a title tax instead of a sales tax. So, you now have to pay a tax of 6.75% to title your car when arrive and try to register it. The tax is based on the market value of the car. Here is the tax calculator:
http://onlinemvd.dor.ga.gov/Tap/Option1.aspx#message


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## Canhouter (Oct 29, 2013)

Thanks for the inputs. While leasing in NJ, the papers show only pro-rated tax paid for the depreciation amount. I am assuming this will be adjusted against the Georgia ad valorem tax or do I have to pay this again? Any idea?


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## jagu (Nov 7, 2006)

Canhouter said:


> Thanks for the inputs. While leasing in NJ, the papers show only pro-rated tax paid for the depreciation amount. I am assuming this will be adjusted against the Georgia ad valorem tax or do I have to pay this again? Any idea?


Georgia does not give credit for taxes paid out of state if they did not receive any amount of it.
It's really a facist move and this just started last year. They now call it a title tax instead of a sales tax, so you have to pay it before you can register or title your car in GA.

GA used to be one of the best lease friendly State and they just f'd it up.


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## Canhouter (Oct 29, 2013)

Oh man. That sucks :-( Thanks a ton for the info.


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## ard (Jul 1, 2009)

maybe dont mention it? Keep a mailing address in NJ for however long it will be....or just drive the car down and thats that.

Critically assess your exposure- not what BMWFS "wants" but what they can do it they find out. Ditto with the state.


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## Arcane.Host (Sep 8, 2006)

Go the paperless mailing route for BMWFS statements. Register yourself online with NJ DMV website and add your car there so you can continue paying NJ car registration renewals online. Don't apply for GA drivers license until your current lease is up.

You will need to renew your insurance policy though which has no relevance to GA taxes or BMWFS lease IMO.

How much duration is left in your lease?

Sent from BimmerApp mobile app


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## Canhouter (Oct 29, 2013)

I have subscribed to paperless statements. My current lease ends on 2 Nov 2015. I should be moving to GA just after Christmas, so by then would have only 8 or so payments left. On the insurance, since BMW FS is listed as Lien Holder / Additional Interest, do they get notified when I update the garaging address?

Paying the TAVT for 8 months would be a bummer - given this situation, is it worth leasing in GA at all? I was looking to my second BMW lease - from our forum sponsor Adrian!


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## Jon Shafer (Dec 15, 2001)

CALL BMWFS toll-free (800) 578-5000.


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## Canhouter (Oct 29, 2013)

Thanks for the quick reply Jon. I did call BMW FS and they said - once you move - give us the new address and we will send you a moving pack. I guess I should have been more specific to ask what will they do given the tax situation. Will call them Monday! Any other advice though? A pull ahead would be nice


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## BobBNY (Sep 2, 2011)

Canhouter said:


> Thanks for the quick reply Jon. I did call BMW FS and they said - once you move - give us the new address and we will send you a moving pack. I guess I should have been more specific to ask what will they do given the tax situation. Will call them Monday! Any other advice though? A pull ahead would be nice


I went through this a few years ago. My lease was 4 months old when I moved from MN to NY. I had to pay up front the sales tax on the remaining value of the lease payments. Double tax since I paid the sales tax in MN. The move pack is everything that you need to re-register your car in the new state; power of attorney, etc. If I recall you pay the tax to BMW and they pay the state.

Maybe you can get a pull ahead. I would try that option.

Also if relocating for work can you get that cost added to a relo package if you have one?

BB


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## Ninong (May 20, 2014)

Canhouter said:


> Thanks for the quick reply Jon. I did call BMW FS and they said - once you move - give us the new address and we will send you a moving pack. I guess I should have been more specific to ask what will they do given the tax situation. Will call them Monday! Any other advice though? A pull ahead would be nice


BMWFS should be able to help you with all of your concerns. However, I just want to add that you will have to register the car in Georgia if it is garaged in Georgia because you will need to get it insured in Georgia. Each state's insurance is regulated by that state's commissioner of insurance so even if your insurance is through a national company they will have different state-specific policy forms.

Because insurance rates vary greatly from state to state and even neighborhood to neighborhood within the same city, using the incorrect address on an insurance policy amounts to insurance fraud and something that can void the coverage. So the bottom line is that you have no options once you have moved to Georgia. You must register the car there in order to get car insurance there.

Good luck!


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## ssiedler (Oct 19, 2006)

I moved from Hawaii to Virginia in Nov 2013 and kept my car registered in Hawaii. All I did was to call BMW FS and have my billing address changed. I did the same for my insurance. In Dec 2013, I was in a collision and my claim was processed through my Hawaii insurance office. No biggie. Since my lease is up in January 2015, I'm not going to change a thing.


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## Ninong (May 20, 2014)

This is the online advice my insurance carrier gives if you're moving: "If you're staying in the same state, simply update your auto insurance policy with your new address. If you're moving out of state, you'll need a new policy because each state regulates coverages and discounts differently. Check out our moving resources, and let your current State Farm agent help with your transfer."

Let me let you in on a little secret. If you're ever in a serious, at-fault accident involving serious injuries to others, your insurance company's claims investigators will look for every possible way to deny coverage and the first thing they will do is confirm the information in your declarations about the drivers of the vehicle and the place where it is principally garaged. Deliberate fraud can void the policy. Just saying.

Having been previously licensed in two different states for decades, I can tell you that I have seen instances where insurance claims were denied based on false statements made by the insured. Read your policy. It tells you that your premium is based on the following and then it lists the description of the vehicle, your personal identification information and the place where principally garaged, as well as the identification of other drivers in the household. That's because rates are based on your address and insurance laws vary from state to state. Some people avoid reporting a change of address because they know their new address has higher rates. Others don't want to pay the registration fees in the new state. Either way, in the eyes of the law, it constitutes fraud. Just keep that in mind. 

I remember two or three instances where car insurance claims were denied based on the policy not being valid in the state were the car was now garaged because the driver failed to notify his insurance company of his change of address. The bigger the claim, the more likely it is to be investigated and denied. Your insurance agent has no control over that.


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## chaswyck (Oct 12, 2014)

Ninong said:


> This is the online advice my insurance carrier gives if you're moving: "If you're staying in the same state, simply update your auto insurance policy with your new address. If you're moving out of state, you'll need a new policy because each state regulates coverages and discounts differently. Check out our moving resources, and let your current State Farm agent help with your transfer."
> 
> Let me let you in on a little secret. If you're ever in a serious, at-fault accident involving serious injuries to others, your insurance company's claims investigators will look for every possible way to deny coverage and the first thing they will do is confirm the information in your declarations about the drivers of the vehicle and the place where it is principally garaged. Deliberate fraud can void the policy. Just saying.
> 
> ...


You are absolutely right. I was in the insurance business for many years and if you conceal information about where you live and where the car is garaged, you might as well not have any insurance at all because they won't pay on a serious claim. Anther point pertinent to this discussion is that if you move, even within the same state to a city that has a different tax rate than the one in which you originally leased the car BMWFS will adjust the monthly tax portion of the lease payment to reflect the new sales tax rate. I moved from one city to another that had a 1% city sales tax rate and my lease payment was adjusted accordingly. The suggestion to use online bill pay and not inform BMWFS that you moved is not a good one either because it's not BMWFS that you're defrauding by doing this, it is the state or city that is not getting the taxes they are due. They will be a lot less friendly about this than BMWFS might be. My feeling is that this is the deal you bought into, pay what you owe and be done with it. Any steps you take to avoid paying what you owe is fraud.


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## Canhouter (Oct 29, 2013)

Hey folks, thanks to all for the inputs. Very valuable advice.

First off, I am absolutely not one for fraud  On the insurance front, I was absolutely clear of informing them the new address once I moved. Question I have is - does that feed into DMV automatically. I was thinking of the scenario which ssielder did - inform his insurance carrier but not changing the registration in the new state. I guess he only changed his billing and not garaging address which is different!

@BobBNY and @chaswyck - If I was on a new lease, I would absolutely go your way - point is I checked the TAVT - its is about 2400 - thats about 6 monthly payments on my current lease - given the few months left is what makes me think!!! Yes, I did buy into the lease - fair point and this is a risk that comes along with it.

@BobbNY - I am relocating on the same job on a new project - I did check my company policy - it says Car Registration is reimbursable - the title tax which GA charges - that would be different from the registration fee of the DMV - is my understanding correct? I will check with the comapny

I will contact BMWFS and see what they say - eating up 2400 bucks or putting that into a new lease - let us see how it unfolds


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## Ninong (May 20, 2014)

ssiedler said:


> I moved from Hawaii to Virginia in Nov 2013 and kept my car registered in Hawaii. ...In Dec 2013, I was in a collision and my claim was processed through my Hawaii insurance office.


Legally you have up to 30 days to notify your insurance carrier of a change of address. You're supposed to do it as soon as possible but the cut-off date is 30 days. So it's possible that if your accident in December 2013 was within 30 days of your November 2013 move from Hawaii to Virginia that the insurance claim was simply paid without question. Your Hawaii policy was still in force even though you had your accident in Virginia because of that 30-day window.

I remember a situation back in the 1980's when we delivered a new BMW to a school teacher who had just moved from out-of-state to the SF Bay Area. The first thing she did was trade in her older car on a new BMW. We confirmed her pay off and new loan approval with her credit union over the phone and tripped her on the spot. We cautioned her to notify her insurance agent immediately of her change of vehicle and change of address so that they could refer her to one of their local agents. She neglected to do that because she was shocked by San Francisco's very high car insurance rates and wanted to hold off. Bad move! Six weeks after she took delivery she totaled the car and the claim was denied because her policy was not valid in California. It does happen.


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## Ninong (May 20, 2014)

Canhouter said:


> On the insurance, since BMW FS is listed as Lien Holder / Additional Interest, do they get notified when I update the garaging address?


Yes. BMWFS will receive a new lienholder's copy of your insurance if you make changes to your address. However, you are still obligated to notify BMWFS whenever you change your principal garaging address so that they will know where to send the hook in the event of a repo. Just joking!


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## Ninong (May 20, 2014)

Canhouter said:


> First off, I am absolutely not one for fraud  On the insurance front, I was absolutely clear of informing them the new address once I moved. Question I have is - does that feed into DMV automatically.


No, changing your address with your insurance company doesn't notify DMV but it's the other way around. Your insurance company will usually require that you obtain a local driver's license within 10 days once you notify them that you have moved. Your insurance agent can explain that to you. The insurance company will require that you change the registration address on your car to your new location. There's no way around that.



> I was thinking of the scenario which ssielder did - inform his insurance carrier but not changing the registration in the new state. I guess he only changed his billing and not garaging address which is different!


In other words, he did NOT inform his insurance company of his change of address, he simply changed the mailing address for his statements. He said he moved in November 2013 and had an accident in Virginia in December 2013 and they paid the claim no questions asked. If the accident was within 30 days of moving to Virginia, then his Hawaii policy was still in force. You're supposed to notify your insurance carrier ASAP but the legal limit on that is 30 days.

There is no legal way to avoid changing the address where the car is principally garaged on your insurance policy if you do in fact move. Yes, it actually does constitute insurance fraud to deliberately avoid notifying the insurance company of any material changes to the information you provided to obtain coverage. Besides, your insurance policy written in one state isn't even valid in any other state once that 30-day grace period has expired if you permanently move.


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## Ninong (May 20, 2014)

Here's a point to think about. Each state licenses insurance companies to do business in their state. Some national insurance companies refuse to do business in states that they consider too risky or that have onerous state regulations. So it's possible that your insurance company may not even be licensed to do business in your new state.

The insurance company has to comply with each state's insurance regulations and they have different insurance policies for each state in order to comply with that state's regulations. If you permanently move into a new state, your insurance company is required by that state's laws to write the coverage in compliance with all of their rules and regulations. 

Your present insurance policy covers you based on the information you provided, which includes the address where the car is principally garaged. It does not cover you after 30 days if you permanently move to another state.


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## TXPearl (Apr 16, 2010)

Garaging address (for insurance purposes) and state of registration are two different animals. Think of yourself as being on a temporary work assignment in Atlanta. Notify your insurer of the new "temporary" address, but wait and see on the vehicle registration. Let them come to you. No one will get arrested over this. I'm guessing BMWFS won't care as long as you keep making the lease payment.

At some point, the remaining lease payments will be less than the potential tax hit on re-registering. Then you'd be better off just turning in early if you had to, but I doubt it comes to that.


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## Ninong (May 20, 2014)

TXPearl said:


> Garaging address (for insurance purposes) and state of registration are two different animals. Think of yourself as being on a temporary work assignment in Atlanta.


But no one is talking about a "temporary work assignment." We're talking about a permanent move to a different state.



> Notify your insurer of the new "temporary" address...


If you actually did move there permanently, which is extremely easy to verify unless you still own your previous home in that state, then you're making a material false statement to obtain insurance. It's insurance fraud.



> No one will get arrested over this.


No one ever gets arrested. What happens, especially if it's a huge claim, is that the insurance company's claims investigators -- who are paid to find ways to deny claims -- will reject your claim.



> I'm guessing BMWFS won't care as long as you keep making the lease payment.


I guess what you mean is that their computer won't care as long as it doesn't know, right? Your lease -- just read all the fine print -- requires you to notify them of any change of address. It also requires you to carry insurance on the vehicle, which you can only legally do based on your correct current address.


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## TXPearl (Apr 16, 2010)

Ninong said:


> But no one is talking about a "temporary work assignment." We're talking about a permanent move to a different state.


Perhaps, but it's really semantics. How long is "permanent"?



Ninong said:


> If you actually did move there permanently, which is extremely easy to verify unless you still own your previous home in that state, then you're making a material false statement to obtain insurance. It's insurance fraud.


I didn't suggest lying to anyone. Simply update the principal garaging address (I'm assuming the OP is using a national carrier). They don't ask if it's permanent.



Ninong said:


> No one ever gets arrested. What happens, especially if it's a huge claim, is that the insurance company's claims investigators -- who are paid to find ways to deny claims -- will reject your claim.


And what would be the basis for denying the OP's hypothetical claim??



Ninong said:


> I guess what you mean is that their computer won't care as long as it doesn't know, right? Your lease -- just read all the fine print -- requires you to notify them of any change of address. It also requires you to carry insurance on the vehicle, which you can only legally do based on your correct current address.


He'll be fully and legally insured.


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## Ninong (May 20, 2014)

TXPearl said:


> Perhaps, but it's really semantics. How long is "permanent"?


That depends on your particular insurance policy. I can't even find mine right now. LOL I know it's around here somewhere but all I seem to be able to find are the renewal notices. I'm positive that you're allowed to keep the car out of state for at least 30 days without notifying them but don't pin me down on anything longer than that. Obviously many people go on summer vacations -- especially school teachers -- that last 8 or 10 weeks while they're traveling around the country and they're covered, as long as they don't venture into Mexico without purchasing proper insurance at the border. So you will have to read the fine print on your policy to find out how long you can keep the car out of state without telling them about it.

One thing is very clear, your policy states that you must notify them of a change of address. I have never heard of having to notify them if you're on a "temporary" work assignment out of state unless we're talking about something lasting months. So ask your insurance agent "how long is permanent?" 



> I didn't suggest lying to anyone. Simply update the principal garaging address (I'm assuming the OP is using a national carrier). They don't ask if it's permanent.


Is it possible to change the principal garaging address without the insurance company requiring a new policy? Even national insurance companies, such as State Farm, own and operate a dozen or more different subsidiary companies that do business in a particular state or region. 
I don't think it's possible to change the "address where principally garaged" online. I think you have to change your address. You would have to call your agent to see if he can change one without the other but I'm sure there are restrictions on how long the car can be garaged out of state without triggering a policy written in that state.



> And what would be the basis for denying the OP's hypothetical claim?? He'll be fully and legally insured.


Not really. If he really and truly moved out of state, then he is required by law to notify his insurance company of his new address. Each state regulates insurance companies that do business in their state. If he's living in the new state, then his old policy is not valid in the new state.

You want to know when this always comes into play? It comes into play when you are involved in an at-fault accident and you seriously injure the people in the other car. Your insurance company is on the hook, probably for the maximum amount of the liability limits on your policy. Their claims investigators will do everything in their power to deny coverage. They will interview your neighbors to establish where the car is garaged -- your new neighbors and your old neighbors at the old address. They will verify your employment. They will check utility records. If you moved out of state several months ago without notifying them of your new address, they will fight the claim.


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## EatonZ26 (Jun 27, 2014)

Bottom line is that if you move to another state and don't register your car in that state or don't change the address on your insurance, you are doing that AT YOUR OWN RISK. If a serious accident occurs and your claim is denied then the amount you are saving on the lease is going to look tiny relative to the liability you will be facing.


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## TXPearl (Apr 16, 2010)

No one is suggesting the OP not obtain valid insurance. The question is really about registration and the associated taxes/fees. I'd hold off on the latter, especially if the NJ registration takes it through lease end.


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## Ninong (May 20, 2014)

TXPearl said:


> No one is suggesting the OP not obtain valid insurance. The question us really about registration and the associated fees. I'd hold off on the latter, especially if the NJ registration takes it through lease end.


How do you get a Georgia insurance policy on a car that is registered in New Jersey? You would have to run that by your new Georgia insurance agent and see if he can get away with that and for how long. I know he's going to tell you to get a Georgia driver's license and he should tell you to register the car in Georgia but insurance agents never cease to amaze me with the things they are willing do (meaning let slide) in order to earn new business or keep current business. 

P.S. -- "Individuals moving to Georgia have 30 calendar days after establishing their residency to register their vehicles. The out-of-state vehicle registration will no longer be valid after the 30-day period. If you do not register your vehicle within 30 days, penalties and fines are assessed."


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## Canhouter (Oct 29, 2013)

I am currently insured with AAA and will inform them of the change of address once the move is completed in Dec/Jan. Am going to check with my agent on the requirement for change in registration and drivers license in GA. Will post the response. It is a 2 year lease and NJ registration is good until 2017. Want to see if there is any way to soften the tax blow.

So as far as GA is concerned, my understanding is this tax is part of the vehicle registration - in NJ I paid the sales tax and DMV registration fee to separate entities.

Also came across something interesting in the FAQ for TAVT - http://onlinemvd.dor.ga.gov/Tap/faqs.aspx/
Q - I am a new resident of Georgia. How does TAVT affect me?
A - New residents moving into Georgia are required to register and title their motor vehicle in Georgia and must pay 50% of the TAVT within 30 days of moving to the state and the remaining 50% must be paid within the next 12 months.

Wonder how it would work given the lease is up before the 12 month period after I establish residency - unless they put a deadline based on the documents sent by BMW FS.

On a lighter note - I am here in the US on a work permit - so everything is "temporary" in a sense


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## Ninong (May 20, 2014)

Canhouter said:


> I am currently insured with AAA and will inform them of the change of address once the move is completed in Dec/Jan. Am going to check with my agent on the requirement for change in registration and drivers license in GA.


You have a maximum of 30 days on both the driver's license and the car registration according to Georgia state law. Your insurance company may require that you get your new driver's license within 10 days (before they actually issue the policy) or they may go along with Georgia state law. Ask them but in any event you have no more than 30 days by law in Georgia.

"You must apply for a Georgia driver license within 30 days of becoming a Georgia resident. All Customer Service Centers can transfer an out-of-state license to a Georgia driver license."

"Individuals moving to Georgia have 30 calendar days after establishing their residency to register their vehicles. The out-of-state vehicle registration will no longer be valid after the 30-day period. If you do not register your vehicle within 30 days, penalties and fines are assessed." -- This is actually the opening paragraph on the link you provided that answers your questions about the TAVT.

So there are the answers to both of your questions as far as Georgia is concerned. In California we always advised customers moving in from out of state to get their new California driver's license within 10 days because some insurance companies' underwriting departments wait to verify that the insured is actually licensed to drive in their state before sending out the new policy and if BMWFS doesn't receive lienholder confirmation of insurance coverage in a timely fashion they will get all over the dealership. (P.S. -- It's state law in California that you must get your California driver's license within 10 days after moving to the state. "New California residents must obtain a California driver***8217;s license within 10 days of moving to the state.")



> Will post the response. It is a 2 year lease and NJ registration is good until 2017. Want to see if there is any way to soften the tax blow.


Good luck but by state law you will be in violation and subject to "penalties and fines" if you don't do it within 30 days. Just saying.


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## Canhouter (Oct 29, 2013)

Some more research - The GA title is not paid until the TAVT is paid in full. Given that the total tax is not due until 1 year - wonder what happens if the lease is up and only 50% of the tax paid.

http://gwinnetttaxcommissioner.mana...le/FAQ/RegistermyVehicleifImNewtoGeorgia.aspx

More interesting - a valid GA insurance is a necessary prerequisite and not the other way around which means that the insurer will not be able to insist on registration and GA license for making the change in garaging address

I guess the real question for my situation if playing by the book is - if registration is the same as paying TAVT in GA, then I should be able to recover the amount paid

Hopefully the company policy allows and they don't get involved in technical interpretation


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## TXPearl (Apr 16, 2010)

Ninong said:


> How do you get a Georgia insurance policy on a car that is registered in New Jersey? You would have to run that by your new Georgia insurance agent and see if he can get away with that and for how long. I know he's going to tell you to get a Georgia driver's license and he should tell you to register the car in Georgia but insurance agents never cease to amaze me with the things they are willing do (meaning let slide) in order to earn new business or keep current business.
> 
> P.S. -- "Individuals moving to Georgia have 30 calendar days after establishing their residency to register their vehicles. The out-of-state vehicle registration will no longer be valid after the 30-day period. If you do not register your vehicle within 30 days, penalties and fines are assessed."


I've never seen an insurer inquire about the state of registration of the vehicle or even ask to see the registration (it's usually the other way around, registration requires proof of insurance). They only care about the VIN and where it will be garaged and driven, etc.

And who still uses an agent these days, seriously??  It's all online.

Yeah, the 30 day thing - sounds like the standard in most states. The key is "after establishing their residency". How is that determined and who is monitoring? I don't know that I've ever heard of this being enforced, but maybe in GA they will since a big tax bill is riding on it.


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## the J-Man (Jul 31, 2009)

If you can get away with it, just don't change your billing address with BMWFS. They won't get it correct even if you do change it, and any new taxes BMWFS does charge you will likely not be remitted to the proper government jurisdiction anyway. BMWFS has an absolutely terrible tax compliance system.


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## Ninong (May 20, 2014)

Canhouter said:


> More interesting - a valid GA insurance is a necessary prerequisite and not the other way around which means that the insurer will not be able to insist on registration and GA license for making the change in garaging address


You're misunderstanding what they mean. They're telling you that you have to purchase valid GA insurance before they will complete any vehicle registration for you. This is true of EVERY state. You have to provide proof of insurance to register your car. Your insurance company will provide that proof of insurance for you and you will be obligated to provide the insurance company with a copy of your new Georgia driver's license and proof of registration within whatever period of days is allowed under state law. For one thing, your insurance company is connected by computer to the DMV records and they can verify your driver's license information and vehicle registration information any time they please. When I was still working, in California, we were connected by computer terminal to California DMV and we could pull registration records right there in the dealership but only two of us at the dealership were so authorized. And pulling your ex-girlfriend's information, or your neighbor's, would be a criminal violation punishable by something or other. I forgot. 

You can purchase valid Georgia insurance coverage through any insurance company licensed to do business in Georgia, including your present insurance company. What happens when you move from one state to another is that your insurance company has to write a new policy that is in compliance with your new state's regulations.

People move from one state to another all the time. You can get proof of insurance from your new agent but if you don't provide them with proof of your new Georgia driver's license and proof that you registered the car in Georgia within whatever period applies in Georgia, then you will receive an automatic cancellation notice -- usually a 10-day notice but I guess it could be a 30-day notice depending on state regulations.

Good luck!


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## Ninong (May 20, 2014)

TXPearl said:


> I've never seen an insurer inquire about the state of registration of the vehicle or even ask to see the registration (it's usually the other way around, registration requires proof of insurance). They only care about the VIN and where it will be garaged and driven, etc.
> 
> And who still uses an agent these days, seriously??  It's all online.
> 
> Yeah, the 30 day thing - sounds like the standard in most states. The key is "after establishing their residency". How is that determined and who is monitoring? I don't know that I've ever heard of this being enforced, but maybe in GA they will since a big tax bill is riding on it.


It's 10 days in California. 

"Establishing your residency" simply means moving into your new residence. You know, buying a home, leasing an apartment, ordering utilities in your name at your new address, receiving mail at your new address, that sort of thing. That's known as "establishing your residency." It's extremely easy to verify.

You do understand, I hope, that every statement of fact you make to obtain insurance, or a car loan, or a home mortgage, etc., is made under penalty of perjury? Just read all the fine print next time. Yes, I have seen a few people go to prison for making false statements on a credit application for a car loan(s) and especially for a home mortgage but all of those involved real professional scam artists. In 33 years in the business I have seen a whole lot of stuff that would absolutely amaze you when it comes to the various credit scams and insurance scams that keep popping up around the country over and over again over the years.


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## TXPearl (Apr 16, 2010)

Ninong said:


> You're misunderstanding what they mean. They're telling you that you have to purchase valid GA insurance before they will complete any vehicle registration for you. This is true of EVERY state. You have to provide proof of insurance to register your car. Your insurance company will provide that proof of insurance for you and *you will be obligated to provide the insurance company with a copy of your new Georgia driver's license and proof of registration within whatever period of days is allowed under state law. *For one thing, your insurance company is connected by computer to the DMV records and they can verify your driver's license information and vehicle registration information any time they please. When I was still working, in California, we were connected by computer terminal to California DMV and we could pull registration records right there in the dealership but only two of us at the dealership were so authorized. And pulling your ex-girlfriend's information, or your neighbor's, would be a criminal violation punishable by something or other. I forgot.
> 
> You can purchase valid Georgia insurance coverage through any insurance company licensed to do business in Georgia, including your present insurance company. What happens when you move from one state to another is that your insurance company has to write a new policy that is in compliance with your new state's regulations.
> 
> ...


Where are you getting this (bolded) from? Maybe true in Calif., but I don't think you can extrapolate that to all 50 states.


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## TXPearl (Apr 16, 2010)

Ninong said:


> It's 10 days in California.
> 
> "Establishing your residency" simply means moving into your new residence. You know, buying a home, leasing an apartment, ordering utilities in your name at your new address, receiving mail at your new address, that sort of thing. That's known as "establishing your residency." It's extremely easy to verify.


I'd do all the same things for a second/seasonal home, or for a temporary apartment. And, yes, it's easy to verify, but who actually does verify it (for an insurance policy)?


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## Ninong (May 20, 2014)

TXPearl said:


> I'd do all the same things for a second/seasonal home, or for a temporary apartment. And, yes, it's easy to verify, but who actually does verify it (for an insurance policy)?


This thread is about someone moving permanently from New Jersey to Georgia. "Establishing residency" is just the insurance company's way of saying that the move is permanent and you now have an address to call home in your new state.

All insurance companies pull the DMV driver's records periodically to check to see if their insureds have had any accidents before sending out a renewal notice (an offer to renew). If you're a very young driver, with an iffy driving record, they may only be willing to write a 6-month policy and they may check your driving record before every renewal. If you're an older driver who hasn't had an accident in decades, they may check it only every few years. In any case, if they discover your driver's license has a different address than what you're claiming on your insurance policy, they will contact you. They may also decide to check the vehicle's registration from time to time. They have that capability. We did it all the time at the dealership if we suspected that the car someone was trading in to us might not actually belong to them. It happens. People try to trade in their mother's car, or their about-to-be ex-wife's car, all the time. We need to know whose name is on the title if the customer tells us the title and registration are lost.

I think I already explained one possible situation in which the insurance company is likely to verify your residency: a serious at-fault accident causing injury that they are on the hook for. If they can determine that you moved into the state two years ago but avoided notifying your insurance carrier, for whatever reasons, then as a matter of fact your out-of-state policy is not valid in your new state. No valid contract means exactly that: NO VALID INSURANCE.

If you live in one state but also have a seasonal condo in another state, then be sure to let your insurance agent know. Usually they only have to adjust your premium if you actually keep a specific car at the out-of-state condo full-time. My previous boss lived in California but owned a condo in Maui, where he kept a car. (One of the benefits of being a dealer. He shipped it out there on Matson Lines.) There may or may not have been an adjustment to his premium -- maybe lower for that vehicle since he only visited the condo a maximum of six weeks a year.

If you move to another state, you have to get car insurance in the new state, written on a policy that is valid in that state as determined by that state's laws. If you live in one state but keep a second car out-of-state, tell your agent and let him figure out how to handle it. You shouldn't need a separate policy in most situations. Let's say your 19-yr-old son is attending school in another state and living on campus with the new X-1 you gave him for his high school graduation present. Just be sure to tell your agent so that your premium for that car can be adjusted, if necessary.


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## Ninong (May 20, 2014)

TXPearl said:


> Where are you getting this (bolded) from? Maybe true in Calif., but I don't think you can extrapolate that to all 50 states.


All 50 states have minimum liability insurance requirements: http://personalinsure.about.com/cs/vehicleratings/a/blautominimum.htm

You can't get insurance without complying with state law. The insurance company is writing the insurance policy based on the information you provided them. If that information is materially false, your insurance is invalid. Especially if we're talking about different states.

The first thing you will be asked to provide is your driver's license when you go to get insurance. The next thing will be the vehicle's registration. You tell the new agent that you don't have a new driver's license yet and you can't register the car unless you can show proof of insurance. He tells you, no problem, I'll write your insurance right now and you can take that with you to DMV when you go to register the car and get a new driver's license. He'll make a copy of your present driver's license and registration. After all, your present driver's license is valid for 10 days after you move to California, 30 days in Georgia. After that it's invalid.

He's writing a 10-day binder (maybe it's 30 days in some states, I don't know). It's sort of a receipt that you paid him the minimum deposit (10% of the annual premium, 20% of the 6-month premium) and provided all the necessary information. Don't worry, if you forgot to tell him about all your speeding tickets, the company will just adjust your premium for you.

It's no different if you have insurance with a national company in the old state and you just moved to the new state. They will send you to a new agent who will handle everything for you. If you use GEICO, or similar, then you can deal with it online or over the phone. They're still doing everything based on the information you provide. They can't legally write the insurance policy in your new state if the vehicle isn't properly registered to operate in that state and you are lawfully licensed to drive in that state. It's that simple. They may verify it themselves online after 10 days, or whatever, I don't know. I've never used GEICO. Maybe you have to send it in to them. In any case, your insurance is not valid if you don't comply with state law.


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## Canhouter (Oct 29, 2013)

Checked with my agent at AAA. Was told to contact AAA in Georgia once I know the new address. They said you could go with the NJ plates and license - and use the insurance to get title and registration in GA.


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