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Do I Need Out-of-State Car Insurance?

While you’re required to have car insurance in the state your vehicle is registered in, you won’t need additional coverage when traveling out of state.

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Written By:
Dash Lewis , Writer:
Written By: Dash Lewis Content Writer
10/09/2024 12:04 AM

Key Points:

  • If you have a valid car insurance policy in your home state, you won’t need additional coverage when you travel to another state.
  • Your insurance policy will adjust to meet another state’s minimum coverage requirements, but your rates may increase after a reported accident.
  • Driving without insurance in the state where your vehicle is registered could result in fines, loss of your driver’s license, or jail time.

If you work in a different state than you live, you might be interested in purchasing out-of-state insurance. But can you have out-of-state car insurance? The short answer is no. Fortunately, if you choose the right coverage, you’ll get the peace of mind of dependable coverage, no matter where in the U.S. you travel.

In this article, our review team talks about how insurance works across state lines and why you can’t purchase out-of-state insurance in most cases. We’ll also answer frequently asked questions about the buying process and give you our picks for the best car insurance companies to kick off your search for car insurance quotes.

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Can You Have Out-of-State Car Insurance?

While most car insurance policies in the U.S. will cover you when driving in all 50 states and Canada, you can’t buy out-of-state car insurance. In most cases, you’re required by law to buy car insurance in your state of residence. If you drive out of state for work or a road trip, your current insurance policy will follow you–just make sure to carry proof of insurance and valid vehicle registration with you.

Penalties For Lack Of In-State Insurance

In many states, you’ll be penalized for driving a vehicle that’s registered but not insured in your home state. Penalties typically include fines and surrendering your vehicle’s license plate.

If you’ve recently changed insurance providers and received a notice of termination of liability coverage, you’ll need to take some steps to avoid paying a fine. Reach out to your new insurance provider to request an FS-1 form to prove you haven’t had a lapse in coverage.


Why Is It Illegal To Buy Out-of-State Car Insurance?

It’s illegal to buy out-of-state car insurance because insurance requirements are different in each state, and liability coverage in one state may not meet another’s minimum requirements for bodily injury and property damage protection. State governments require you to purchase an auto insurance policy in your state of residence to ensure you have the required level of car insurance coverage.

Many people move to a different state and forget to purchase a new insurance policy. By not updating your insurance policy, you risk having your coverage removed or missing out on insurance claims payments.

There are a few exceptions to this rule:

  1. College students who attend school out of state: You may need to buy car insurance for college students in another state if you’re attending college there. Different states have different laws on this matter. 
  2. Multi-state homeowners: If you own a vacation home in a different state and leave one of your vehicles there, you may need to insure and register the vehicle in that state, depending on the specific state’s laws.
  3. Military personnel: Most states allow members of the military to keep their car insurance and registration in the state where they maintain their residence. Even if you’re deployed to a different state for years, you don’t typically have to buy car insurance in the new state.

Will My Car Insurance Cover Me in Another State?

Yes, your car insurance will cover you when you’re driving outside of your home state. Car insurance companies generally cover you anywhere in the U.S. for short trips up to three or four weeks, and it doesn’t matter how frequently you make those out-of-state trips. For added peace of mind, speak to your insurance agent and confirm your coverage details ahead of your trip.

It’s common for U.S. citizens to live in one state and commute to another one for work. If you live in New Jersey and drive to New York for work, you’ll be covered by your auto insurance.

Can I Use My Car Insurance in Other Countries?

Some car insurance policies will cover you outside of the country, and some will not. Call your car insurance company before you travel to ask whether or not it will cover you outside of the U.S. If you don’t already have international coverage, your company may be able to sell you coverage for the duration of your visit.


Can I Have Car Insurance In Two States?

It is possible to have car insurance in two states. Car owners who keep one of their vehicles in a different state may have to insure that vehicle in the state of their alternative residence. For example, Florida requires you to register a vehicle if it stays in-state for 90 or more days in a year. For snowbirds–people who vacation for several months of each year in Florida–insurance laws require Florida car insurance.


What Happens If I Get Into An Accident Out-Of-State?

If you get into an auto accident in another state and that state requires a higher level of minimum coverage than the amount of insurance you own, your insurance company will help you. It adjusts to meet state requirements and help pay for your expenses. However, while the insurance company will help you pay for your bills, your car insurance rates may rise.


Out-of-State Car Insurance Coverage: Our Take

The insurance policy you have in your home state will follow you when you travel, so in most cases, there’s no need to purchase a new policy. If you’re not happy with your existing coverage, you can shop around for new coverage to make sure you’re getting the best benefits for the right price. Consider increasing your coverage from basic liability to comprehensive and collision, which includes coverages for more types of vehicle damage as well as personal injury protection. Remember to check with your current insurance company about early cancellation fees before commiting to a policy from a new provider.

Our Recommendations for Car Insurance Providers

We reviewed the top car insurance companies in the nation–considering factors such as cost, coverage, and industry reputation–and State Farm and Travelers were two that came out on top. If you or your spouse are a member of the military, we also recommend USAA car insurance because of its outstanding military benefits.

Whenever you shop for car insurance, we recommend getting quotes from multiple providers so you can compare coverage and rates. In addition to the auto insurance company you choose, factors such as your age, vehicle make and model, and driving history may affect your premium, so what’s best for your neighbor might not be best for you.

State Farm: Best Overall Provider

In our review of dozens of insurance providers across the U.S., State Farm came out as the best overall provider. The company has over 100 years of experience in the industry and a solid rating of A++ for financial strength from AM Best. State Farm also ranked first among large insurers in the 2023 J.D. Power U.S. Insurance Shopping Study℠ with a score of 877 out of a possible 1,000 points.

State Farm’s coverage options include standard liability and full coverage options as well as a usage-based program that provides discounts for safe driving habits. Policy rates for State Farm policies trend toward affordable for most drivers, including those with recent accidents, speeding tickets, or DUIs.

Read more in our full State Farm insurance review.

Travelers: Best Coverage Options

Travelers is another provider with a long history and an outstanding industry reputation. The company boasts an A rating from the Better Business Bureau (BBB) as well as an A++ Financial Strength rating from AM Best. Coverage is available in all 50 states and includes named non-owner insurance, which is an option for drivers seeking temporary insurance coverage or coverage on an out-of-state vehicle.

Travelers also offers usage-based insurance coverage and GAP coverage for financed vehicles. With select policies, you may also be eligible for generous benefits like rental car reimbursement, trip interruption coverage, and accident forgiveness.

Read more in our full Travelers insurance review.


Out-of-State Car Insurance: FAQ

We cover some of the most common questions about out-of-state car insurance coverage below:

How do I know if my car is currently insured?

The best way to find out if your insurance policy is valid is to reach out to your insurance company directly. If you can’t contact your insurance company for some reason, the Department of Motor Vehicles (DMV) can provide current information about your vehicle’s insurance and registration status.

Can you insure cars in different states?

In some cases, you can and may be required to insure a car in different states. In most cases, this happens when a driver vacations or lives in another state for a significant period of each year. If you fit this description, remember that you’ll need to have a car insurance policy in each state you drive in in order to be adequately covered.

Do you need new car insurance when moving to a new state?

If you move to a new home in a different state, you’ll need to register your vehicle in that state and purchase coverage that meets that state’s minimum car insurance requirements.

Can I buy Florida insurance with an out-of-state driver’s license?

Yes. If your secondary residence is in Florida, you may be able to purchase Florida-based car insurance with an out-of-state license.

What is the penalty for not having car insurance in my home state?

Penalties for not having car insurance vary by state. In most cases, driving without valid car insurance will result in a fine or confiscation of your license plate. In some situations, your license could be suspended, or you may even face jail time.


How We Rate Auto Insurers

Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:

  • Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
  • Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
  • Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
  • Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
  • Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
  • Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.

*Data accurate at time of publication.