Is it a bad idea to insure your car in another state?

It’s no secret that the ins and outs of vehicle registrations and auto insurance can be difficult to work through.

With so much red tape, it’s no surprise that some people are asking, “If your state doesn’t offer affordable auto insurance, is it bad to insure your car in another state than the one it is registered in?”

If you notice that a bordering state offers better auto insurance rates, it could be tempting to insure in that state rather than the one you live in. However, your vehicle, generally speaking, must be registered and insured in the same state.

Of course, there are exceptions to the rule, and if you have moved to a new state you do have a grace period to switch your registration and insurance, although you should do so as quickly as possible.

Is it bad to insure your car in another state? It is if you’re not in the military, but you can enter your ZIP code today to receive free quotes from insurance companies near you.

How soon must a driver update the insurance and registration after moving to a new state?

Insuring your car in a state where you don’t live is considered a form of insurance fraud. Committing insurance fraud can bring about some severe consequences, one of which is the denial of your claims.

In order to avoid accidentally committing insurance fraud, research how long you have to get car insurance when you move — how long to register your vehicle with your state’s Department of Motor Vehicles (DMV). Bear in mind that this time frame varies from state to state.

If you’ll be moving to a new state soon, be sure to review this list so you know when to register your vehicle:

How Long Drivers Have to Register a Vehicle in Each State

Your car insurance when you move has to match your registration, and quite a few states won’t let drivers register their vehicles unless proof of insurance can be provided. Your driver’s license will also have to match your vehicle’s registration. (For more information, read our How To Get Insurance On Your Driver’s License“).

Of course, if you are simply spending some time in a state temporarily, there’s no need to register your vehicle. Every state lets visiting drivers drive an out-of-state car usually for about a month.

If you’re planning a long trip, you may be asking yourself, “Will my auto insurance cover me in another state?” As long as your insurance is up to date, than yes, it will.

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How can drivers change their auto insurance?

Changing your insurance policy is usually very easy. You can shop online to find the best insurance company for you in the state where you’ll be living.

You’ll notice that insurance requirements and discounts can change from state to state; you could actually get lower rates when you move or not have to buy auto insurance at all if you live in Virginia or New Hampshire.

How can drivers update their driver’s licenses?

Like auto insurance requirements, the steps for getting a new license vary from state to state. The best thing to do is to contact your local DMV for instructions.

While the process can be as simple as filling out a form, it can be quite troublesome in a few states. For example, you could have to take and pass a written test. If this is the requirement in your state, it’s in your best interest to study beforehand since there could be obscure questions on it.

Luckily, you can usually get free study materials via your DMV’s website or at a local office.

How can drivers update their vehicle’s registration?

Most states will require that drivers have in-state insurance and an in-state driver’s license before allowing them to get their vehicle registered.

Once those steps have been completed, getting the registration simply involves some paperwork and paying a fee, the amount of which will be different in every state.

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Which drivers can have their vehicles registered and insured in different states?

College students may be wondering, “Can I be on my parents auto insurance if I live in another state?” The answer is typically yes, but you should always consult your insurance company when faced with such issues.

If you are a member of the military you know that you’ll be moving about quite a bit. With that in mind, you may have thought to yourself, ” Can you have auto insurance in two different states?”

Members of the military can have their vehicle registered in one state but insured in another. Members of the military must declare residency in the state to which they will return too after ending their time in the service, also known as their home of record.

As long as their vehicle’s registration is current in their declared home state, they do not need to register their vehicle in any other state they are stationed in.

Insuring Your Car in Another State: What You Need to Know

Unless you are in the military, you should make sure that your vehicle is registered and insured in whichever state you reside in. If you suspect that you may be an exception to this rule, always contact your insurance company so you can be sure to avoid committing insurance fraud.

If you move to a new state, finding new insurance is relatively easy. Simply shop online to find free quotes that best suit your needs. After you find the perfect policy, you’ll be able to update your license and registration as well.

Is it bad to insure your car in another state? You should insure your vehicle in the state where you live, and you can enter your ZIP code today to receive free insurance quotes today.