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

Can You Get Auto Insurance from Another State?

The answer to this question is yes and no. While your standard car insurance policy will typically cover you in all 50 states and Canada, there are some exceptions. For example, if you live and store vehicles in multiple states, you may need to register your car in one state and insure it in another or purchase multiple policies to meet your insurance needs. Additionally, if you are a member of the military, there are different rules that apply to you.

Temporary trips out of state are covered by standard insurance policies

In the case of an interstate trip, your insurance policy will function as if you had the minimum amount of car insurance required in the state where the accident occurred. For example, if you live in a state with a "no-fault" insurance system and are involved in a crash in another "no-fault" state, your insurance will cover the damage. This is true even if your home state does not have "no-fault" insurance requirements.

It is important to note that standard insurance policies only cover temporary trips. For long-term stays or residency in another state, you may need to update your policy to match your new residence. This is because you are generally required to buy car insurance in the state where you spend most of your time or consider yourself a resident. Each state has its own definition of residency, usually based on the amount of time spent in the state or whether you live and work there full-time.

Before embarking on any out-of-state travel, it is always a good idea to review your insurance policy and understand the specifics of your coverage. This will ensure that you have the necessary protection while enjoying your trip.

You may need to update your policy for long-term stays in another state

If you're planning to stay in another state for an extended period, it's important to review your auto insurance policy to ensure you have the right coverage. While your standard policy will typically cover temporary trips out of state, long-term stays may require you to update your policy to match your new residence.

In general, auto insurance is based on your state of residency, and you should buy car insurance in the state where you spend most of your time. This means that if you move to a new state, you'll need to transfer your car insurance and registration to that state. Failing to do so could result in your insurer cancelling your coverage and denying any pending claims.

However, there are some exceptions to this rule. For example, if you split your time between multiple states, such as owning homes in different states or being a college student attending school out of state, the requirements may vary. In these cases, it's important to check the specific laws and regulations of the states involved, as each state has its own definition of residency and requirements for vehicle registration and insurance.

Additionally, if you have vehicles stored in two different states, you may need to purchase additional policies to ensure they are all covered.

It's always a good idea to contact your insurance provider and review your policy before making any long-term travel plans to ensure you have the appropriate coverage for your destination state.

You can't live in one state and buy car insurance in another

Each state has its own car insurance laws, especially regarding minimum coverage requirements and accidents. While a standard auto insurance policy will cover you if you are driving out of state, it is generally illegal to live in one state and register your car in another. If your insurer finds out, they will likely cancel your coverage and deny any pending claims.

In general, you need to buy car insurance in your state of residency. Therefore, you should transfer your car insurance and registration if you move to a new state. Every state has its own definition of residency, but typically, if you continuously live in a state for more than a few months, or live and work full time there, you are considered a resident.

There are some exceptions to the rule, such as for students going to school out of state and for members of the military. Most states allow military members to keep their home state coverage while they are stationed elsewhere. In both cases, however, you should check with your insurance provider to be sure.

If you have multiple vehicles kept in different states, you will likely need separate insurance policies for each vehicle based in the states where they’re garaged.

If you have residences in multiple states, talk to your insurance provider to understand where your policy should be based to avoid communication issues that could lead to unpaid claims.

You should insure your car in the state where it is registered

It is important to insure your car in the state where it is registered. This is because auto insurance policies are based on your permanent residence, and using an address for insurance that is different from your primary residence is considered insurance fraud.

There are, however, some exceptions to this rule. For instance, if you live in multiple states, you may be able to get auto insurance in either of the two states, but the car must be insured in the state where it is registered. In this case, it is important to speak with your department of motor vehicles (DMV) or an insurance agent to ensure you are complying with state law and are fully covered.

If you have multiple vehicles kept in different states, you will likely need separate insurance policies for each vehicle based in the states where they are garaged. The amount of time spent in each state is also a factor, with some states only issuing tags to vehicles that are in the state for a certain number of days per year to qualify for dual residency.

Another exception is for military members, who are usually allowed to continue coverage from their home state while they are stationed elsewhere. However, this may not apply if they spend a significant amount of time at a location, in which case they may need to purchase new coverage.

College students who attend school in a different state may also fall under an exception, depending on the laws of the state. Some states allow out-of-state students to maintain their primary registration elsewhere, while others require them to purchase a separate, out-of-state policy.

In general, it is best to consult with an insurance agent to determine the specific requirements and exceptions for your state, and to ensure that you are complying with all relevant laws and regulations.

Insurance rates vary from state to state

Another crucial factor is location, as auto insurers assign risk levels to ZIP codes based on theft frequency, collisions, and vandalism. This forms the base rate for calculating premiums. Consequently, states with higher population densities, such as New York, tend to have higher insurance rates due to the increased likelihood of accidents. In contrast, states with lower population densities, like Idaho, generally have cheaper insurance rates.

Additionally, factors such as weather conditions, local claims history, and the percentage of uninsured drivers in an area can influence insurance rates. For instance, states prone to severe weather events or those with higher accident fatality rates may experience higher insurance costs.

The cost of living in a state also impacts insurance prices. States with a higher cost of living, such as California, often have higher insurance rates as repair and labour costs tend to be more expensive. On the other hand, states with a lower cost of living, like Idaho, usually benefit from more affordable insurance rates.

Furthermore, the presence of no-fault laws can drive up insurance rates. In no-fault states, insurance companies are required to compensate their policyholders for damages and medical expenses regardless of who is at fault in an accident, leading to higher premiums.

Lastly, states with a high number of uninsured drivers tend to have more expensive insurance rates. Florida, for example, has one of the highest uninsured motorist rates in the country, contributing to its high insurance costs.

Frequently asked questions