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Have you asked yourself recently, “Can I have auto insurance from a different state than the state I live in?” If so, you’re not alone. Many drivers are looking for ways to save money on car insurance. Below, we provide answers to this question and show you how to remain in good standing with your insurance provider.
If you are interested in obtaining a new auto insurance policy, try out our comparison tool above. Within minutes, you can receive free auto insurance quotes from multiple providers. All you need to do is enter your ZIP code to get started.
Is It Possible to Get Auto Insurance from a State Other Than the One I Live In?
You may be wondering why someone would even want to get auto insurance from a different state. The primary reason is that insurance requirements vary from state to state. Some jurisdictions only require drivers to have liability coverage, even if they are still paying for their vehicle. That can translate into big savings. However, the risks of having insurance from another state far outweigh any potential rewards.
Generally, your car insurance policy should reflect your current state of residency. Under normal circumstances, using an address other than your own is considered insurance fraud. Insurance fraud is punishable by hefty fines and even jail time.
Why Is Out-of-State Insurance Considered Insurance Fraud?
Insurance providers collect a variety of information to set rates. One piece of information insurers use is your ZIP code and address. That is because where you live has a significant impact on your chances of filing a claim.
For example, someone that lives in a rural part of Tennessee with minimal cars on the road is not that likely to be involved in a crash. On the other hand, a driver who resides in downtown New York is constantly exposed to heavy amounts of traffic daily and may therefore pose a higher risk of being involved in a crash.
If you provide your insurance company with inaccurate information, then it renders the company unable to assess your risk properly. That is why out-of-state insurance is considered a form of fraud. If you want to avoid any fines or potential criminal charges, be sure to inform your insurance company of your new address when you have moved. You should also notify the DMV of any changes in your residency so that it can update your vehicle registration information.
Are There Any Exceptions for Out-of-State Insurance?
There are a few exceptions that may allow for out-of-state insurance coverage:
Seasonal Residents
Seasonal residents such as snowbirds and temporary workers may maintain out-of-state insurance since they are not making a permanent move.
Insurance should be purchased for your primary state of residence. However, you must familiarize yourself with the laws in each state that you will be residing in. States like Georgia require you to register your vehicle there if you will be living there for 30 days or more.
College Students
College students are also eligible for out-of-state insurance. A college address is considered temporary, allowing students to remain on their parents’ insurance, even if the school is located in a different state.
Military Personnel
Out-of-state insurance is also an option for military personnel who frequently move for work. If you’re in the military, you should purchase insurance for your primary state of residence.
Dual-State Residents
Dual-state residents are another common exception for out-of-state insurance. Usually, these residents should purchase auto insurance from the state where their vehicle is registered. Another option is to buy insurance in the state where they spend the majority of the year. For example, they may spend a few months in a tropical vacation home and the rest of the year in a cooler state like Michigan or Maine.
Will My Car Insurance Provide Coverage When I’m Driving Out of State?
Yes, your car insurance will provide coverage while you are driving out of state. As mentioned earlier, some states may require that you register your vehicle there if you stay in that jurisdiction for an extended amount of time.
However, if you are making a permanent move to a new state, you must notify your auto insurance company of the change. If you have relocated and have not informed your car insurance company, the company may drop your policy or refuse to honor a claim.
How to Change My Address for Auto Insurance
Changing your address with your insurance company is a straightforward process. You can speak with your local insurance agent or call the customer service department. Many providers even allow you to make changes online or through a mobile app.
If you are relocating to a new state, it is a great time to shop around for better insurance rates. Another provider may offer better coverage or cheaper rates in your new state. Remember, it is free to obtain quotes on a new policy, and it never hurts to weigh your options. Doing so might save you hundreds in insurance costs.
Our Recommendations for Auto Insurance
If you’re looking for a new auto insurance policy, we recommend USAA and GEICO. These providers topped our industry-wide review of every major car insurer in the country. Get a few free quotes so you can compare coverage and pricing.
USAA: Best for Military
USAA is known for providing customers with an exceptional service experience. Our experts rated it the Best for Military Families and awarded USAA a score of 4.5 out of 5.0. USAA offers everything from mileage-based plans to full coverage car insurance. Unfortunately, the insurer only provides coverage for military personnel and their immediate family members, so not everyone is eligible.
GEICO: Most Discount Options
If you want to partner with an insurance provider that offers a ton of discounts, then GEICO may be the company you’ve been looking for. Our experts awarded it a score of 4.4 out of 5.0. GEICO beat the competition and has a stellar reputation in the insurance industry. This provider offers everything add-on coverage including rideshare insurance and mechanical breakdown coverage.
