There are a variety of reasons why you might want to insure your car in a state other than your own. You could live in another state for several months each year. You or your child may be away at college, or you may be tempted to insure your car in a lower-cost state. To save money, you should register and insure your vehicle in a state or city where you do not live. In order to decide the best course of action for your coverage in other situations, you'll need to contact directly with an insurance agent or your insurance company.
Important Points to Remember
- Because insurance registration requirements differ by state, it's good to talk to your insurance provider about your situation.
- It's best to inform your provider know if you travel or have multiple residences in different states so that you're covered.
- Insurance fraud is when you purposefully carry insurance in another state to save money.
Is it possible to insure a car in another state?
The cost of insurance varies greatly from state to state. Within a state, they can vary dramatically. It is due to a number of factors, including the risks and costs of owning a car. For instance, if you stay in a city with a high crime rate, your insurance costs will almost certainly be higher than in a rural area. New Hampshire, for example, is one of the few states that does not require auto insurance. If you select not to carry insurance, you may be required to show proof of financial responsibility. What if you spend a significant amount of time driving in another state regularly? Some insurance policies will occasionally allow you to insure a vehicle that is registered in a different state. Ensure you're listed as a driver on the car insurance policy if you qualify for one of these exceptions.What Could Possibly Go Wrong?
If you have knowingly committed car insurance fraud by purchasing a policy in another state, things will go wrong when you are in an accident. Your insurer will most likely refuse to pay the claim and cancel your policy, potentially leaving you with thousands of dollars in debt. You'll almost certainly face criminal charges as well. Warning: If you don't have insurance, you won't be able to drive in most states. If you're caught driving anyway, your license could be suspended or revoked, with additional fines or even jail time possible.When It Was Simply an Error
When you move from one state to another, you'll have to change your car insurance policy as well—and you'll want to do it as soon as possible. Let's say you have a registered and insured car in Florida, but you recently relocated to New Hampshire. You were in a car accident and filed an insurance claim with your insurer. What were you doing in New Hampshire? The insurance claims investigator will inquire. Your claim may be denied if you respond that you currently live there.A vehicle that is registered in one state but is driven in another.
Suppose you buy a car for a family member to use, such as a son or a daughter who is a college student in another state, or your job requires you to work in another state for several months. The majority of car insurance companies demand that the vehicle be registered and insured in the same state. The majority of state motor vehicle departments require the vehicle to be registered in the same state as the driver's license. Tip: In such cases, some insurers offer special options. On how to proceed, you should ask for guidance from an insurance agent.In one state, a car owner Another Car Driver
The same policy most likely covers both cars if you have a two-car family. What if one of the drivers is moving to a different state? If you're the sole owner of the vehicle, you might be able to register it in the state where the driver now resides and obtain a new insurance policy for that driver. Unless you have a loan or a lease, it is probably more practical to transfer ownership of the car to the driver.The Snowbirds' Predicament
One of the drawbacks of owning a vacation home out of state is the cost of car insurance. Consider a couple of snowbirds who travel to Florida from a northern state every winter. They must have Florida car insurance if their vehicle is in Florida for more than 90 days per year. Similar requirements exist in the majority of other states. You'll have to deal with two different insurance agents and policies as a result. Tip: If your insurer is a large multi-state firm, you may be eligible for a discount if you have policies in multiple states. Suppose you plan to keep a car in one state permanently. In that case, you could theoretically cancel your insurance coverage, surrender your license plates, and cancel your vehicle registration at the end of each season. You'll probably undo everything at the start of the next season. You will be out of luck if your car is stolen or damaged while you are uninsured. This isn't an option if your car isn't paid off because most lienholders require borrowers to have insurance on their financed vehicle. Contacting your insurance agent and explaining your situation is a better option. Some companies offer significant discounts to drivers who keep their cars in storage or have low mileage. Inquire about vacation home and vehicle insurance packages if you prefer to go with a small provider in your vacation home state.Personnel in the Military
You must declare a state of legal residence if you are traveling as part of your military service. It is usually where you go after completing a tour or retiring. In that state, your vehicle must be registered and insured.Real Estate Market Analysis
Statistics on new home construction are important leading economic indicators. They may be able to provide you with insight into the housing market's future. These indicators reveal a different aspect of the homebuilding industry's health. If home sales remained stable, but housing starts fell, for example, it would have an impact on home sales. Many buyers are unlikely to be willing to wait more than a year. It could also indicate a scarcity of lumber, concrete, or construction workers. Costs and sales prices could rise as a result of the shortages.