CarInsurance.com Insights
- State laws usually require you to register and plate your vehicle in the state where the car will be primarily driven, especially if you are a resident of that state.
- Insurance companies normally require you to insure the vehicle in the state where the car will be driven for the majority of the year.
- There may be some exceptions for military members and students who attend school out of state, but you will need to check with your insurance provider.
It may be possible to buy, register and insure a car in one state while holding a driver’s license in another state, but you must have a good reason. A typical example is if you’re going to school out of state, where you want to buy, register and insure a car, but you want to keep your license from your home state.
Military members stationed outside their home state and people who spend part of the year at an out-of-state secondary residence may own a car in one state and have a license from the other. If your vehicle stays at a secondary home year-round, you must buy coverage in that state. The general rule of thumb is that you should register and insure your vehicle in the state where it will primarily be driven.
Is it legal to insure a car with an out-of-state license?
Your car insurance policy will typically cover you for short-term road trips or vacations to other states. It’s when you begin making lengthy stays in another state that the picture becomes murky.
For example, if you live in a northern state but typically snowbird to Arizona or Florida for half the year, you may need to obtain insurance in the other state, particularly if that is where you will drive most frequently. The same goes for military members who may spend most of the year at their out-of-state base rather than their home state.
It’s best to check with your insurance provider and be upfront about the details of your residency and driving to ensure you will be covered. Also, contact the out-of-state DMV to determine their rules — some states require you to register your car after a certain period of residency.
State-by-state exemption examples
Each state has its own rules about how long you can drive or insure a car with an out-of-state license before you’re required to switch. For example:
- Arizona: Drivers must register a vehicle within 7 months if it’s primarily used in the state.
- Florida: Requires registration within 10 days if you establish residency, enroll kids in school, or work in the state.
- California: Gives new residents 20 days to register vehicles and update insurance.
- New York: New residents must register within 30 days of moving.
These grace periods vary widely, so it’s important to check the DMV or Department of Insurance in your new state before assuming your current registration and policy will cover you.
Insurance broadening clauses expand to adjust to other states’ limits
Most major insurers include a “broadening clause” in their policies. This means if you’re driving in another state, your coverage automatically adjusts to meet that state’s minimum insurance requirements.
For example, if your home state only requires $25,000 of liability coverage but you’re visiting a state that requires $30,000, your insurer will temporarily raise your limits while you’re there. However, this doesn’t cover permanent moves or vehicles primarily garaged in another state — you’ll still need to update your registration and insurance.
Temporary car insurance options
If you’re not moving permanently but still need coverage for a car in another state, you may have a few options:
- Short-term or temporary policies: Some insurers offer month-to-month coverage, though availability is limited.
- Non-owner car insurance: If you don’t own the car but drive regularly (like borrowing or renting), this covers liability.
- International drivers: Some companies provide endorsements for Canadians or foreign license holders who bring a vehicle into the U.S.
These solutions can fill the gap if you’re not ready — or required — to fully switch your license and registration.
Avoid the risks of misrepresentation
However, using the wrong address or not updating your insurance when required can backfire and you can run the risk of misrepresentation, such as:
- Denied claims: If your insurer finds out your car is primarily garaged in another state, they could refuse to pay a claim.
- Policy cancellation: Insurers can cancel or non-renew for material misrepresentation.
- Legal penalties: States may fine or suspend drivers for incorrect registration and insurance.
Being upfront with your insurer avoids much bigger problems down the road.
Step-by-step checklist for buying and insuring a car out-of-state
If you’re buying a car with an out-of-state license, follow these steps to stay compliant and covered by your insurance policy:
- Confirm residency status: Determine if your stay qualifies as temporary or permanent.
- Gather documents: Proof of insurance, proof of address, driver’s license, and financing documents (if applicable).
- Contact your insurer: Notify them about the purchase and where the car will be garaged.
- Check state registration requirements: Each state has its own timeline for registering out-of-state vehicles.
- Complete both DMV and insurance updates: Register the vehicle and update your policy in tandem.
Does your car insurance policy cover you driving out of state?
Yes, your car insurance policy will cover you when traveling out of state for short-term vacations.
Also, if you travel to Mexico and beyond its borders, you will need a separate policy. Your U.S. policy will cover you in Canada.
When does auto insurance not cover you out of state?
If you spend most of your time living and driving in a state that is not your home state, your insurance policy might not cover you. For example, if you vacation seven months of the year in Florida and spend the remainder of your time in your home state, then you will likely require insurance in Florida.
The general rule of thumb is you are required to register and obtain insurance in the state where you live and drive the majority of the time.
Frequently Asked Questions
Can you insure a car in another state?
If you have vehicles garaged in two states, such as one at your permanent home and the other at a vacation home, then the vehicles must be registered and insured different states.
Do you need a new driver’s license when you move to another state?
Yes, moving to another state will require you to get a new driver’s license.
Most states will give you a grace period for doing so, usually 30 to 90 days, but its always best to check. It’s also best to get it done as early as possible instead of waiting until the end of the grace period in case you run into any complications.
Can you keep car insurance from another state?
If you are moving to that state, then the answer is no. You are required to register and obtain insurance in the state where you are a resident.
There are some exceptions to the rule, such as for students going to school out of state and for members of the military. Most states allow military members to keep their home state coverage while they are stationed elsewhere.
Final thoughts
There are instances where you can have a license in one state, but have it insured for coverage in a different state. The most typical are for college students, military members and snowbirds.
The guide to apply is, where do you live the majority of time and where will the vehicle be driven the majority of time? If the answers involve different states, then you may be required to have an insurance policy in a state separate from your license.
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