State Of Confusion: Does Location Impact Your Auto Insurance?

Does it matter which state my auto insurance is in?

Each US state has its own auto insurance laws, and it is your responsibility to know the differences, especially when you move to a different state. While your car insurance coverage extends across the US, and will cover you for temporary trips out of state, you may need to update your policy for long-term stays. In general, you should buy car insurance in the state where you spend most of your time. You can't live in one state and buy car insurance in another.

Does my insurance cover me when travelling out of state?

If you're travelling out of state, you may be wondering how your insurance coverage works. Here's what you need to know:

Health Insurance:

Health insurance rules and coverage details can vary depending on your plan and location. It's always a good idea to contact your health insurance provider before travelling to understand your coverage. Some general insights include:

• Health insurance plans typically cover emergency services at any hospital in the United States, except for Hawaii.
• Non-emergency care during out-of-state travel may not be covered by your health insurance plan.
• If you seek care outside of your insurance plan's network, you may incur higher out-of-pocket costs.
• When travelling internationally, it is highly recommended to purchase travel insurance that covers medical emergencies and routine care, as your domestic health insurance may not provide coverage overseas.

Auto Insurance:

When it comes to auto insurance, your policy will generally cover you for temporary trips out of state. However, there are a few things to keep in mind:

• Your auto insurance coverage extends across the United States, so you are typically covered for road trips, vacations, and work or school commutes across state borders.
• If you are permanently relocating to another state, you will need to update your insurance policy with your new address.
• Your auto insurance may not cover you for international travel, including Canada and Mexico. In these cases, you may need to purchase a separate, temporary policy.
• If you are a part-time resident or split your time between multiple states, you may need to register and insure your vehicle in the state where you are considered a legal resident or spend the majority of your time.

What happens if I move to a new state?

If you're moving to a new state, there are a few things you need to keep in mind regarding your auto insurance. Firstly, it's important to understand that each state has its own laws and regulations regarding auto insurance, including minimum coverage requirements and accident protocols. These variations can significantly impact your insurance rates and coverage options.

When moving to a new state, you will likely need to purchase a new auto insurance policy. Insurance laws differ between states, and your current policy may not provide the necessary coverage in your new state of residence. Contact your insurance provider to confirm if they offer coverage in your new state. If they do, they can guide you through adjusting your policy to meet the new state's requirements.

In case your current insurance company doesn't operate in your new state, you will need to switch insurance providers. This is a good opportunity to shop around and compare quotes from different companies to find the best coverage and rates for your needs. Remember to consider factors such as minimum liability requirements, cost of living, and population density, as these can influence insurance rates in your new state.

It's essential to update your insurance information promptly to avoid penalties and ensure continuous coverage. Notify your current insurance provider about your move and inquire about any necessary changes to your policy. You should also research the specific insurance requirements of your new state by visiting their Department of Motor Vehicles (DMV) website. This will help you understand the minimum liability laws and other pertinent details.

In addition to updating your insurance, don't forget to register your vehicle with the DMV in your new state and obtain a new driver's license. The timeframe for these updates can vary, so it's recommended to complete them as soon as possible to avoid any fines or legal consequences.

By following these steps, you can ensure that you have the appropriate auto insurance coverage and are in compliance with the regulations of your new state.

Does my insurance cover me in Mexico or Canada?

When it comes to driving in Canada, your American car insurance policy will typically cover you. For instance, GEICO customers are covered in Canada and simply need to bring along proof of insurance, such as their standard GEICO identification card.

However, driving in Mexico is a different story. Most standard US auto insurance policies do not cover you in Mexico. Mexican authorities do not recognise US or Canadian insurance policies as valid insurance in Mexico. So, if you're heading to Mexico, you'll need to purchase additional coverage. Some US insurance companies may offer a limited extension of vehicle theft and damages coverage up to a specific number of miles. But, in general, you will need to buy a Mexican auto insurance policy to prove your financial responsibility in the event of an accident.

If you're a GEICO customer, for example, you can buy Mexico-specific policies for cars, RVs, and motorcycles that are valid for only the duration of your trip.

Can I keep my car insurance if I move out of state?

Moving to a new state can be a stressful experience, and it's natural to wonder whether you need to change your car insurance provider. The answer depends on your current insurance company and the state you're moving to.

Most large insurance companies, such as GEICO, State Farm, Allstate, Progressive, and USAA, operate in all 50 states. If you have insurance with one of these companies, you can usually keep your policy when you move but you must notify them about the move. They will adjust your policy to comply with the rules and requirements of your new state. This is important because each state has different insurance laws and requirements, which can affect the cost of your policy. For example, some states have high minimum levels of liability insurance, while others have low levels or no requirements at all. Therefore, it's crucial to contact your insurance company within 30 to 90 days of your move to ensure your policy remains valid.

On the other hand, if you have a smaller or regional insurance provider, they may not offer coverage in your new state. In this case, you will likely need to switch to a new insurance company. It's a good idea to contact your current insurer first to see if they can refer you to a partner company in your new state, making the transition smoother.

It's worth noting that even if you can keep your current insurance policy, your premium may change due to the different requirements and rates in your new state. Additionally, factors such as your new commute distance and the claims history of your new area can also impact your insurance rate.

In summary, while it may be possible to keep your car insurance policy when moving to a new state, it's important to communicate your move to your insurance company and understand the specific requirements and rates of your new state to ensure you have the appropriate coverage.

Can I have car insurance in a different state than my registration?

In most cases, you must register and insure your vehicle in the same state. This is because both vehicle registration and auto insurance are based on your permanent residence. Using an address for insurance that's different from the primary residence where you keep your vehicle is considered insurance fraud.

However, there are some exceptions to this rule. If you live in multiple states or are a member of the military, out-of-state auto insurance exceptions exist. If you split your time between two states, you may be able to get auto insurance in either of those states. In this case, you should speak with your department of motor vehicles (DMV) or an agent from your insurance company to make sure 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're garaged.

If you are a college student with a car at an out-of-state school, you will probably need to register your vehicle in that state. However, if you don't have a car at school and your primary residence is still your parents' home in a different state, you can still be covered by your parents' insurance.

Frequently asked questions