Auto Insurance for an Out-of-State Driver (2023)

There are many situations where you might find yourself splitting your time between states. From car insurance for snowbirds spending a few winter months in warmer climates to car insurance for military members on deployment, knowing how your car insurance covers you can be confusing when you’re in more than one state.

Regardless of how much time you spend in another state, you can’t insure a car in a state it’s not registered in. The primary reason for this is to prevent insurance fraud, but there’s also no need for your coverage to be so complicated.

Instead, your car insurance will cover you while you’re out of state, no matter how long you’re gone. Depending on the state you’re visiting, you might need to register your car and update your insurance after a certain period.

Read on to learn more about how your car’s registration affects its insurance. Then, compare quotes with as many companies as possible to make sure you find the most affordable coverage.

Can you register a car in one state and insure it in another?

There are many situations where registering your car in one state and getting insurance in another makes sense for a driver’s lifestyle. However, you should always get insurance in the state your vehicle is registered in.

Most states require that you show proof of auto insurance before you can register your car. Drivers usually stay within their state lines, but there are situations where your insurance can become confusing. 

The U.S. Department of State requires that all vehicles must be registered with the Department Office of Foreign Missions Diplomatic Motor Vehicle (DMV) program. For example, many workers in Portland, Oregon, commute over the Washington state line from Vancouver. In this situation, it might make sense to get insurance in the state you work rather than where you live.

Complicating matters further is that insurance rates vary by state. If your car is insured in a state you don’t live in, any claim you make might be denied as fraudulent. Because of this risk, you should speak with an insurance representative and tell them about your situation. They might be able to offer you a personalized, affordable solution.

Exceptions to the Rule of Registering and Insuring Your Car in the Same State

While your vehicle’s coverage and registration should be in the same state, there are a few situations where you might be able to get car insurance in another state. These include:

• Military members. Since military members are often on deployment, registration rules are a little different for them. Usually, you register your car in the state you plan to return to once your deployment is over. Find out the best insurance companies for military personnel and veterans.
• Temporary moves. The amount of time you can live in a state before you need to register your car varies, but you usually don’t need to update your registration for a short stay.
• College students. Car insurance for college students also has different rules. Although you’ll probably need to register your car if you bring your vehicle to an out-of-state school, you might be able to stay on a parent or guardian’s policy.

No matter your situation, you should contact an insurance representative from your company. They know all your options for out-of-state insurance and can make sure your car is always covered.

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Can you have car insurance in two different states?

While insurance companies won’t sell you a policy for a state you don’t live in, there are a few ways to buy multi-state car insurance. However, you should check with a representative before you purchase anything, as you may not need it.

If you travel between state lines for work, your car insurance should be in the state you call home. Your insurance covers you when traveling in the U.S., no matter which state you’re in.

For people with two homes, most insurance companies will cover your car year-round without having to change your policy. Your insurance should be in the state you spend the most time in. For example, Montana residents who spend four months in Arizona during the winter should get their car insurance in Montana.

If you have two or more cars at homes in different states, you should register and insure your vehicles in whichever state you leave them parked in.

Since you’ll be covered by your car insurance while traveling or taking an extended vacation, there’s no need to worry about getting car insurance in another state. However, you should check how long you can stay in a state before you’re legally required to register your car.

How long do you have to register your car?

When you move to a new state, you have a limited time to register your car and request a new license. People who reside in a state part-time are usually not exempt from this requirement either.

The amount of time you can stay in a state before you need to register your car varies. For example, popular states for snowbirds during the winter often let people stay for several months before requiring registration.

Here are the states with the longest periods before requiring out-of-state visitors to register their cars:

• Arizona: Seven months
• New Mexico: Six months
• Arkansas: Six months
• Oregon: Six months
• Washington D.C.: 30 days or seven months after a fee
• Wyoming: Six months

Many states — such as Delaware, Maine, Illinois, and Pennsylvania — only require you to register your car if you accept employment within the state or enroll a child in a public school.

When you become a resident of a new state, you usually have less than a month before your car needs to be registered. You will want to check with your local DMV to see how long you have to get your car registered.

Some states, like Alaska or Florida, want you to be registered within 10 days of becoming a resident. Other states like Colorado or Idaho are more generous with the time you can take to register your car.

Although it might be tempting to delay registering your car, you can avoid tickets and other problems by completing the process as soon as possible.

Do you need a new license when you move to another state?

Along with registering your car, you’ll also need a new license when you move. The process is usually straightforward but more difficult in some states.

Drivers often only have to fill out an application at their new DMV. However, some states require that you pass a written driving test.

If you’re moving to a new state, you should check what its DMV requires to get a new license. Most drivers don’t look at their driving manuals after they pass their initial test, and you might be quizzed on obscure information.

Additionally, there’s a lot of variation in state driving laws. A simple example is the difference between California and Arizona’s HOV lanes. California HOV lanes are always active, and only motorcycles, vehicles with two or more passengers, and clear-air cars can use them.

In Arizona, HOV lanes are only active on weekdays during morning and afternoon rush hour. Outside of those times, anyone can use an HOV lane.

If the state you’re moving to requires a written test to get a new license, you can get free study materials on its DMV website.

When should you inform your insurance company about moving to a new state?

You should inform your insurance company about moving to a new state as soon as you can after you move.

Changing your home address is usually easy — simply call a representative and let them know you’ve moved. You’ll almost certainly see new rates since location is a key factor affecting your car insurance rates. There are many other factors, but you can get an idea of how much drivers pay for insurance below.

If you have coverage from a local or small insurance company, you might have to shop elsewhere if it doesn’t operate in your new home. When that’s the case, compare quotes with as many companies as possible so you can find affordable rates.

What are the best car insurance companies when you drive in multiple states?

While there’s not a particular company that offers multi-state car insurance, some companies are better suited to people who travel than others. If you need new insurance and you split your time between states, consider the following companies:

• USAA. USAA sells insurance to military members and their families and often has the lowest rates. Its focus on serving military members comes with unique features designed to help people on deployment. For more information, check out our USAA auto insurance review.
• Geico. Geico usually has affordable rates, but it’s also a good choice for older adults spending their retirement as snowbirds. Geico’s Prime Time contract guarantees coverage renewal for drivers over 50. For more information, check out our Geico auto insurance review.
• The Hartford. The Hartford writes insurance policies for AARP members and offers special perks for older drivers. For more information, check out our The Hartford auto insurance review.
• Travelers. Travelers is a good option for students who spend the school year away from home and offers several academic discounts. For more information, check out our Travelers auto insurance review.

Although these are excellent places to start looking for quotes, many factors affect your car insurance. The best way to find the most affordable plan for your needs is to compare quotes with as many companies as possible.

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Find the Best Car Insurance No Matter Where You Drive

No matter why you split your time between states, you probably don’t need to worry about getting multi-state car insurance. Of course, make sure to check with your DMV or an insurance representative, but most drivers can rely on their insurance from their home state.

Even if you have an existing insurance policy, comparing rates with other companies is still beneficial to ensure you’re getting the best price. Comparing quotes is especially important if you spend extended time in a new state.

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