It may be possible to buy, register and insure a car in one state while holding a driver’s license in another state, but you must have a good reason. A typical example is if you’re going to school out of state, where you want to buy, register and insure a car, but you want to keep your license from your home state.
Military members stationed outside their home state, or people keeping a car at an out-of-state vacation home may also want to own a car in one state and have a license from the other. If your vehicle stays at a secondary home year-round, you must buy coverage in that state. The general rule of thumb is that you should register and insure your vehicle in the state where it will primarily be driven.
Keep reading to learn more about state law and vehicle registration.
- State laws usually require you to register and plate your vehicle in the state where the car will be primarily driven, especially if you are a resident of that state.
- Insurance companies normally require you to insure the vehicle in the state where the car will be driven for the majority of the year.
- There may be some exceptions for military members and students who attend school out of state, but you will need to check with your insurance provider.
When do I need to buy an out-of-state insurance policy?
Your car insurance policy will typically cover you for short-term road trips or vacations to other states. It’s when you begin making lengthy stays in another state that the picture becomes less unclear.
For example, if you live in a northern state but typically snowbird to Arizona or Florida for half the year, you may need to obtain insurance in the other state, particularly if that is where you will do the majority of your driving. The same goes for military members who may spend the majority of the year at their out-of-state base rather than their home state.
It’s best to check with your insurance provider and be upfront about the details of your residency and driving to ensure you will be covered. Also, contact the out-of-state department of motor vehicles to determine their rules as some states require you to register your car after a certain period of residency.
Does your car insurance policy cover you out of state?
Yes, your car insurance policy generally will cover you when travelling out of state especially for day trips and short-term vacations.
It’s when the stays become lengthy or involve travel to other countries that the picture becomes less clear.
Your car insurance policy will cover you for a trip to Canada because of “reciprocal laws” between the two countries.
Unfortunately, the same doesn’t hold true for travel to Mexico or further south. Some U.S. insurance providers have partners that offer Mexico-specific policies for cars, RVs and motorcycles, so its best to check with your current insurance provider who may be able to offer you a better rate.
When does auto insurance not cover me out of state?
If you spend the majority of your time living and driving in a state that is not your home state, then it is likely your insurance policy will not cover you. If, for example, you vacation seven months of the year in Florida and spend the remainder of your time in your home state, then you will likely require insurance in Florida.
The general rule of thumb is you are required to register and obtain insurance in the state where you live and drive the majority of the time.
Also, if you travel to Mexico and beyond its borders, you will need a separate policy. Your U.S. policy, will cover you in Canada.
Can I keep my car insurance from another state?
If you are moving to that state, then the answer is no. You are required to register and obtain insurance in the state where you are 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.
Can you have auto insurance in two states?
Yes, there are circumstances where you can have car insurance in two states.
The most common would be when you have separate vehicles garaged in two different states such as one at your permanent home and the other at a vacation home. Again, the rule of thumb applied, is the vehicle must be registered and insured in the state where it is driven the majority of the time.
When should you tell your car insurance company about moving to a new state?
The sooner you tell your insurance provider, the better. If your provider finds out you moved to another state without letting them know, your coverage may be in jeopardy.
In addition, most states have regulations in place that require you to switch over your license and registration within one to three months of moving. At the same time, most states will require you to have proof of insurance for coverage in that state.
Your current insurance provider may offer coverage in the state you’re moving to, so it’s always good to check. It may also be an opportune time to shop around for a better rate.
Do you need a new driver’s license when you move to another state?
Yes, moving to another state will require you to get a new driver’s license.
Most states will give you a grace period for doing so, usually 30 to 90 days, but its always best to check. It’s also best to get it done as early as possible instead of waiting until the end of the grace period in case you run into any complications.
Final thoughts
There are instances where you can have a license in one state, but have it insured for coverage in a different state. The most typical are for college students, military members and snowbirds.
The guide to apply is, where do you live the majority of time and where will the vehicle be driven the majority of time? If the answers involve different states, then you may be required to have an insurance policy in a state separate from your license.
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