Out-of-State Car Insurance| Bankrate

Insurance laws vary from state to state, and generally, you will purchase your car insurance policy in the state in which you live and in which your car is registered. But what happens if your circumstances are more complicated—for example, if you have residences in two states? You may be wondering, can my car be registered in one state and insured in another? Bankrate’s insurance editorial team created this guide to answer your questions regarding when you can have car insurance in another state so that you make the best insurance decisions for your own situation.

Does your car insurance cover you out of state?

Your car insurance policy generally will cover you when you drive your car out of state. If you are on vacation, for example, or are passing through another state on a road trip, you won’t need to get a separate car insurance policy. Rather, something known as a “broadening clause” goes into effect, and your car insurance policy will now adhere to the laws of the state you’re currently in. This is important if you have minimum coverage car insurance, or if you drive into a state with different at-fault or no-fault laws.

Driving out of the country also comes with different rules. While your American car insurance policy typically will cover you in Canada, it likely won’t cover you in Mexico. You may need to purchase a short-term Mexican auto insurance policy to cover you during your trip. As such, it’s usually best to check with your insurance company before you leave.

Learn more: How much car insurance do you need?

Does car insurance cover college students out of state?

Whether or not car insurance covers college students out of state depends on several factors: state regulations, the student’s primary address and whether they return home during breaks. In most cases, a student attending college without a car whose primary residence is still their parents’ home in a different state can still be covered by the parents’ insurance in their original state of residence. If the student lives over 100 miles from home, some insurers even offer a discount on the family’s policy.

On the other hand, college students who bring a car to school in a different state and live out of state year-round may need to purchase a standalone policy in the state where they keep their car. If you’re not sure whether you need a separate policy, consider contacting your insurance company to ask about your situation and check the state requirements in both your home state and the state where you or your family member are attending school.

Learn more: Best car insurance for young adults

Can my car be registered in one state and insured in another?

In general, your car must be registered and insured in the same state, since both vehicle registration and auto insurance are based on your permanent residence. In fact, using an address for insurance that’s different from the primary residence where you keep your vehicle is a form of insurance fraud.

However, in some cases it’s possible to insure a car in a state other than the one where your primary residence is, including if you:

• Live in multiple states
• Are a member of the military

But it’s important to understand how they might apply in your situation.

You are a resident of two states

If you split your time between two states, you may be able to get auto insurance in either of the two states (but it will not technically be “out of state” since you will be living there). Most often, the rule of thumb is your car must be insured in the state where it is registered. Every state has its own rules and laws, so you will likely need to 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 — for instance, a daily driver at your home in Maryland and a sports car that stays at your vacation home in Florida — you will likely need separate insurance policies for each vehicle based in the states where they’re garaged.

Time is another variable. Some states will only issue tags to vehicles that are in the state for 183 days or more a year to qualify for dual residency. Check with the DMV in any state you live in part-time to determine your registration and insurance needs.

You are a member of the military stationed in another state

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. When moving to another state, you will likely need to consider purchasing new coverage. If this happens, speak with an agent to ensure you are properly covered.

Frequently asked questions

• How soon after moving do you need a new car insurance policy?
  

  It depends on your car insurance company. Usually, the window is 30 to 90 days. If you know when you are moving, the best thing you can do is to speak with an agent as soon as possible and tell them your plans. Otherwise, you may run the risk of getting into an accident and finding out that you are not covered. Unless you live in one of the two states that don’t participate in either agreement — Michigan and Wisconsin — the Driver License Compact (DLC) or the Nonresident Violator Compact (NVC) ensure that your home state will be informed of your violation and can even suspend your license until you resolve the matter with the other state. No matter where the violation took place, drivers with tickets typically pay more for auto insurance following the renewal of the policy.

• Can I insure my car in another state?
  

  In general, if you insure your car in a state that is not where your primary residence is, it could be considered a form of insurance fraud. If your circumstances are more complex, however—say, you live in New York but have a winter home in North Carolina—your best bet may be to sit down with your insurance agent and discuss your situation. In that case, you might need to have two policies to meet the mandates of both states. A licensed insurance professional can look at your specific situation, however, and help you work out the best situation so that you can drive legally in both states.

• How do I change car insurance when moving out of state?
  

  When you move to a new state, your insurance coverage types and levels may change to reflect the laws and regulations in your new state. If your insurer offers nationwide coverage, you may be able to remain with the same company, if you wish. If not, and your current insurer does not offer insurance in your new home, you may need to shop around for another carrier. Keep in mind that your premium is also likely to change since your location is one factor that insurers consider when determining rates. It’s a good idea to make sure your new policy is in place and active before you cancel the old one, to ensure that you are not driving without insurance at any point.

• What happens if I get a ticket in another state?
  

  When you receive a ticket in a state other than the one in which you live, you will need to resolve that ticket to avoid penalties, which could include fines, fees or license suspension. In most states, the DLC and NVC allow states to communicate across borders regarding vehicle violations, so it is likely that your home state will be informed of your ticket. That means that even if you rarely drive in the state where you received your ticket, you could still face penalties in your home state.