Each state has their own auto insurance or motor vehicle financial responsibility laws regulating the type of insurance one must obtain and carry. In some states you need to show insurance when you register a car while in others you must provide proof when you acquire or renew your driver's license.

To find out what a specific state requires regarding car insurance it is best to check with that state's Department of Motor Vehicles or insurance regulator.

In New Jersey state laws require you to show proof of insurance purchased through any New Jersey licensed insurance producer if your car is registered in NJ. Your insurance company must give you a New Jersey Insurance Identification Card for each vehicle under your policy. You must keep the card in the vehicle and present it:

• Before an inspection
• When involved in an accident
• When stopped for a traffic violation
• When you are stopped in a spot check by a police officer

In many states, and to insurance companies, it does not matter as much what state you are licensed in as much as it matters where your vehicle is garaged and sometimes where it is registered. In many cases you may have an out of state license but acquire insurance in different state because you are temporary there and the car is garaged and used in that location.

For example if you are licensed in New Jersey but go to school in a different state and buy a car while there and register it in that state then your insurance would likely need to be from that different state and not your licensing state of NJ. If you have a question about what state you should be insured in an insurance agent or a state's DMV should be able to help you determine what choices you have available to you.

For a New Jersey auto insurance quote, click here.