Do You Need Multi-State Car Insurance?

Auto insurance follows the car, even across state lines, so multi-state insurance generally is not a product sold by insurance companies. However, there may be some instances where individuals would need two separate auto policies — such as those who own homes in two states and have cars parked at each residence. Drivers should note that states have different minimum insurance requirements so limits can vary for each car’s policy.

You may need to buy a separate policy or endorsement for international travel — you’re driving your car to Mexico or taking it overseas, for instance. Some insurers may extend coverage while you’re in Canada but you should double-check.

On This Page

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  Can You Have Two Car Insurance Policies?

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  Does Car Insurance Cover Me When I Travel Out of State?

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  When Would You Need Multi-State Car Insurance?

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  How Long Do I Have To Register My Car After Moving to a New State?

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  FAQs

Can You Have Two Car Insurance Policies?

Having two or more auto insurance policies is possible and can be purchased from the same insurer or different insurers. For example, you may have a car you use for daily commuting and a sports car you occasionally drive for leisure. The sports car may be insured under a separate pay-per-mile policy since it’s driven less often, while the daily commuter policy is underwritten traditionally. Keep in mind that when filing a claim, you will need to contact the appropriate insurance company.

Can You Have Car Insurance in Two Different States?

When it comes to insuring two different cars in two different states, you may need two separate auto policies. This is usually the case when you own two homes in different states and you have a car parked at each home. Some insurers offer special policies for individuals who divide their time living in two different states — this is called a “snowbird exception.” (More on this in a later section.)

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Does Car Insurance Cover Me When I Travel Out of State?

Most car insurance policies will cover you during short out-of-state trips that last a few weeks, whether you're on vacation or commuting. Therefore, you generally won’t need to buy additional coverage or a separate policy if you’re planning a road trip to another state.

When Would You Need Multi-State Car Insurance?

Multi-state car insurance generally isn’t a product sold by insurance companies since coverage will follow the insured vehicle even across state lines. However, there may be some instances in which a driver would need a second out-of-state car insurance policy — usually when the individual owns two or more vehicles and keeps them in separate states.

Having Homes in Two Different States

You will likely need two separate policies if you have a primary residence and a second home in another state and have two different cars parked at each residence.

For example, say you live in New York and own a vacation home in California. In New York, you need bodily injury liability coverage: $25,000 per person and $50,000 per accident. In California, you only need $15,000 per person and $30,000 per accident.^[1][2] You would have two separate policies, each meeting the insured vehicle’s insurance requirements in that state.

Snowbird Exception

Snowbirds — people who split their time living in two different states each year — should ask their auto insurance company if they offer a snowbird exception.

“Snowbird exceptions” are provisions in car insurance policies that allow individuals who spend part of the year in one state and part of the year in another state to maintain insurance coverage in both states.

Here’s how the snowbird exception would work for somebody who lives in New Jersey from March to October and lives in California from November to February, assuming you take your car with you.

1. Your insurance company would write an auto policy that meets the coverage requirements for New Jersey with the policy term lasting from March to October.
2. When you move to California, your insurance company would rewrite your policy, updating your coverage to meet the requirements in California.

It is important to check with your insurance provider to see if they offer a snowbird exception and if it meets the requirements of both states.

Working in a Different State Than You Live

Having two different auto insurance policies may or may not be necessary if you live in one state and work in another. It is generally only required if you have two vehicles: one parked at your primary residence and a second vehicle parked at your workplace. You generally will not need two separate policies if you own one vehicle and use it to commute to work and back home.

You Have a College Student Dorming in Another State

Parents generally won’t need to buy a separate auto policy for their child if they are dorming out of state but there are a few caveats if the child is to remain on their parent’s auto policy:

• The college student must still use their parent’s address as their primary residence.
• The parent must be listed as the owner on the car title.

If the college student is the sole owner listed on the car title and their primary residence is different from their parent’s, then they are responsible for buying their own auto policy.

How Long Do I Have To Register My Car After Moving to a New State?

Each state will have its own deadlines governing when you must register your car after becoming a state resident. For example, you have 30 days to transfer your license and 90 days to register your vehicle after becoming a Colorado resident. In Texas, you have 30 days to register your vehicle after establishing residency.

The process for establishing residency will also vary by state and can consider several factors, such as how much time you spend in the new state, the state that issued your driver’s license, whether you updated the address of your primary residence and where your spouse resides.

It is highly recommended to register your vehicle as soon as possible after moving to a new state to avoid any penalties or fines for driving with an unregistered vehicle.

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