What Is Out-of-State Car Insurance and When Do I Need It?
- If you move to a new state, you’ll need to buy a new car insurance policy there.
- You need to insure your car in the same state where you register it.
- Your car insurance will cover you when you take short trips to other states.
When do I need to buy out-of-state car insurance?
You need to buy a new car insurance policy when you move to a new state. The car insurance you bought in your old state won’t work in your new one.
Every state has its own rules for car insurance. To drive legally, you must meet the new state’s minimum coverage limits.
Each state also has a deadline to register and insure your car. Most states give you between 30 and 90 days.
Does my car insurance cover me out of state?
Your car insurance will cover short trips to other states. So, it should work fine for vacations, road trips or commutes.
It won’t cover you in your new state if you move from one state to another, though.
If you plan to drive in another country, your car insurance may or may not cover you there. Check with your company or agent if you aren’t sure you’ll be covered.
Canada
Most U.S. car insurance policies cover you when you drive in Canada. But some provinces also need you to have a non-resident inter-province insurance card. Your car insurance company can sell you one.
Mexico
Your U.S. car insurance will not work in Mexico. To drive there, you must buy Mexican car insurance. You can get it through U.S. companies that work with Mexican insurers, such as Allstate, Geico or Progressive.
Other countries
Your car insurance will not cover you in other countries besides Canada. Before you drive, you can buy a temporary policy from a rental car agency or a local insurance company.
Can you have car insurance in a different state than your registration?
Your car insurance and registration usually need to be in the same state you live in. There are some exceptions for members of the military, some college students and short-term employees.
Military members
Armed Forces members can usually keep their home-state car insurance while serving elsewhere. The state where you’re stationed may still charge additional fees, though. Before you deploy, check the car insurance laws in the new state. And don’t be shy about contacting your insurance company if you need help figuring this out.
Out-of-state college students
Many states let out-of-state students stay on their parents’ car insurance while away at college. Depending on where you live and garage the car, you may need your own policy. If you do, check the car insurance laws in the state where you’ll go to school so you know how much coverage you need.
Short-term employees
As long as you don’t move, you can use your home-state insurance while working as a short-term employee in another state. You do need to make sure it meets the minimum requirements of the state where you work, though.
How do I get out-of-state insurance?
To get out-of-state car insurance, ask your current insurer first, then compare quotes from other companies before buying a new policy and canceling your old one.
Compare insurance quotes in your new state
Car insurance rates are different in every state. Before you buy, shop around and compare quotes from several companies. Make sure you use the same limits and deductibles Your deductible is your share of repair costs for a collision or comp claim. Your insurance company pays the rest. for each company when you compare quotes.
Contact your current car insurance company
If you don’t find a cheaper rate after comparing quotes, call your current car insurance company. Tell them you need coverage in a new state. Many companies can move your policy to the new state.
Buy the new car insurance policy first
Once you find the best and cheapest car insurance quote for your needs, buy the policy. You must do this before you can register your car in your new state.
Cancel your old policy
Once your new car insurance policy begins, you can cancel your old one. Make sure the two policies overlap so you don’t have a lapse in coverage.
Frequently asked questions
You cannot legally register your car in one state and insure it in another. Each state controls its own car insurance laws, and your coverage must meet your state’s minimum liability limits.
Most states give you 30 to 90 days to update your car insurance after you move. You must do this before you can register your car. The deadline is different in each state, so check with your new state’s DMV before you move.
You cannot insure the same car in two different states. Your car insurance must match the main state where you keep your car.