Out-Of-State Auto Insurance: Is It Possible?

If you're planning a road trip or a short-term vacation to another state, your standard auto insurance policy will typically cover you. However, for longer stays or relocations, you may need to update your policy to match your new state of residence. Each state has its own car insurance laws and requirements, and insurance agents are usually licensed to operate in only one state, so it's essential to understand the regulations of your new state. While your insurance may cover you during temporary visits to another state, it's important to clarify the specifics with your insurance provider to ensure you have the necessary coverage.

Temporary trips out of state

When it comes to auto insurance, it's important to understand the difference between temporary trips and long-term stays or residency in another state. Here are the key points to know about temporary trips out of state:

• Your existing car insurance policy will typically cover you for temporary trips or short-term travel to another state. This means that if you're taking a road trip, commuting to another state for work, or simply visiting another state for a few days or weeks, your current insurance will generally remain valid.
• In the event of an accident or incident while temporarily out of state, your insurance policy will usually provide coverage. This is true even if your policy doesn't meet the minimum requirements of the state you're visiting. Most states have a "broadening clause" that ensures your insurer will cover the difference to protect you financially.
• It's important to note that this coverage generally applies to travel within the United States. If you plan to drive to Canada, you may still be covered, but for Mexico and other countries, you will likely need to purchase a separate, temporary insurance policy. These policies are typically inexpensive and easy to obtain.
• For people who split their time between multiple states, such as those with residences in different states or college students attending school out of state, the insurance situation can be more complex. In general, you must register and insure your vehicle in any state where you are considered a resident.
• The definition of residency varies from state to state. Some states, like Arizona, require drivers to register their vehicles if they live in the state for more than seven months per year, while others, like Arkansas, set the threshold at six months. It's important to check the specific requirements of the state you'll be spending time in.
• Additionally, some states, like Georgia, require you to register your vehicle if you stay there for a certain period, even if you're not considered a resident. So, if you're planning an extended stay in a particular state, be sure to check their DMV requirements.

International travel

U.S. Auto Insurance Abroad

U.S. auto insurance policies typically provide coverage when driving in Canada and Mexico. However, if you plan to drive outside of North America, your current policy will likely not apply. In most cases, you will need to purchase separate international auto insurance or rental car insurance for your trip. It is important to research the specific insurance requirements of your destination country, as they can vary significantly.

International Rental Car Insurance

When renting a car internationally, it is highly recommended to purchase rental car insurance to protect yourself from potential damages or accidents. Credit card companies and rental car agencies often offer insurance coverage, but it is crucial to carefully review the terms and conditions to ensure adequate protection. International rental car insurance policies may have exclusions or limitations, and understanding these details beforehand can provide peace of mind and help you avoid unexpected expenses.

International Auto Insurance for Expats

If you are relocating to another country and bringing your car, obtaining international auto insurance is essential. Your current U.S. insurance policy may not provide coverage abroad, and the requirements for auto insurance can differ significantly between countries. International auto insurance ensures compliance with local regulations and provides financial protection while driving in your new home country.

Non-U.S. Citizens Driving in the U.S.

Non-U.S. citizens driving in the United States may need to obtain car insurance from a U.S.-based carrier, especially if they plan to stay for an extended period. An international driving permit (IDP) and a valid driver's license from their home country are typically required to purchase car insurance. However, it is important to note that not all states recognize international driving permits, and insurance providers may also consider factors such as age, driving history, and credit history when determining eligibility and rates.

Temporary Visitors to the U.S.

If you are a short-term visitor to the U.S., it may not be necessary to purchase a separate car insurance policy. Temporary car insurance coverage from rental car agencies is usually sufficient for accidental damages during your stay. This type of coverage is similar to liability insurance, protecting you from costly damages in the event of unintentional collisions.

In summary, when travelling internationally, it is crucial to understand the auto insurance requirements of your destination country and plan accordingly. Purchasing the appropriate coverage, whether international auto insurance or rental car insurance, will ensure that you are protected in the event of accidents, damages, or other unforeseen circumstances during your trip or relocation.

Residency requirements

• State of Residency: In general, you need to purchase car insurance in the state where you reside. This means that if you move to a new state, you'll need to transfer your car insurance and registration to that state. It is usually illegal to live in one state and register your car in another.
• Time Spent in a State: The amount of time you can stay in a state before needing to register your car varies. Some states, like Arizona, require registration if you live there for more than seven months a year, while others, like Arkansas, set the limit at six months.
• Part-Time Residents: For individuals who split their time between multiple states, such as college students or seasonal residents, the insurance requirements can be more complex. You generally must register and insure your car in a state where you are considered a resident. Check with the specific state's requirements, as some states mandate registration even if you don't qualify as a legal resident.
• Military Personnel: Most states allow military members to maintain their car registration and insurance in their home state, even if they are stationed in a different state. However, this may change in the event of a Permanent Change of Station (PCS).
• Definition of Residency: Each state defines residency differently. Typically, if you live and work full-time in a state or reside there for more than a few months, you are considered a resident.
• Address Verification: When registering your vehicle or updating your insurance, you may need to provide proof of your address in the state. This can include documents such as utility bills, rental agreements, or a valid driver's license from that state.
• Insurance Company Communication: It's crucial to communicate any changes in residency or long-term stays in another state to your insurance company. They can guide you in complying with state laws and ensuring you have the necessary coverage.

Military members

Most states allow military members to continue coverage from their home state while they are stationed elsewhere. However, this may not be the case in the event of a permanent change of station (PCS), where you spend 20 weeks or more at a location. In this case, you will likely need to purchase new coverage in the state you are moving to.

Some states have special provisions for military members who want to keep coverage in place from their home address. For example, if you are stationed in Massachusetts, you can keep the registration from your home state as long as your military car insurance meets the minimum liability laws of Massachusetts. However, your car must be registered and titled in Massachusetts within 30 days if you are living there.

If you are driving your car to another state for a temporary duty trip and not changing your permanent duty station or home of record, your military car insurance typically doesn't require changes. If you are making a permanent change of station move to another state, your out-of-state military car insurance must conform to the laws in the new state.

If you are permanently outside of your state of record, you may need to buy car insurance in your new state to comply with state requirements.

Many auto insurance companies offer discounts for active-duty military personnel, veterans, and members of the National Guard. Companies like Geico offer up to 15% off your auto insurance policy. The state of Louisiana offers a special insurance discount for service members. There are also discounts offered by some agencies when you store your vehicle while on active duty.

Students

If you're a student with a car, you may be wondering if you need to get auto insurance from the state you're attending college in, or if you can stay on your parents' policy. Here's what you need to know:

Staying on Your Parents' Policy

In most cases, students can stay on their parents' car insurance policy while they're in college, as long as they haven't moved out permanently. This is often the most convenient and affordable option for families, as it allows them to share a single policy and be covered when driving each other's cars. Additionally, the student remains covered during school breaks when they return home. However, some insurance companies may have specific requirements or restrictions for covering out-of-state students, so it's important to check with your provider.

Getting Your Own Policy

If you're an out-of-state student who owns a car and plans to keep it on campus, you may need to purchase a separate car insurance policy in the state where you're attending school. This is especially true if you live out of state year-round and don't typically return home during breaks. The specific requirements may vary depending on the state and your insurance provider, so it's important to contact your insurer to clarify their policies. Additionally, some states may have different regulations regarding out-of-state student registration and insurance.

Factors to Consider

When deciding whether to stay on your parents' policy or get your own insurance, consider the following factors:

• Residence and Ownership: If you're living on campus and won't have regular access to a car, you may be better off being excluded from your parents' policy. On the other hand, if you plan to bring a car to college and use it regularly, it's advisable to stay on your parents' policy or get your own insurance.
• Cost: Keeping a student on the family policy can be expensive, but getting a separate policy may also result in higher premiums, especially if the school's ZIP code has higher insurance rates.
• Usage: If you won't be driving frequently, you may not need comprehensive coverage and could consider alternatives like usage-based insurance.
• Discounts: Both options may qualify you for different types of discounts, such as good student discounts or distant student discounts.
• Emergencies: Even if you don't plan on driving regularly, staying on your parents' policy or having your own insurance ensures coverage in case of emergencies or when driving friends' cars.

In conclusion, whether you're a student or not, the general rule is that you should buy car insurance in the state where you spend most of your time. However, there are special considerations for part-time residents, such as students who attend college out of state. It's important to carefully review your insurance options, compare rates, and consider all relevant factors before making a decision.

Frequently asked questions