Is it illegal to have car insurance for a different state when your living in another state?

MSAD

Illegal: no.

Problematic: yes

Here's the deal: The insurance company bases your rates on where the car is principally garaged. I.E. where you live.

When you take out your policy, you will have to answer questions about where the car is registered and principally garaged/used. If you lie...and say that you are in California (when in fact you are in Arizona) you are committing a "material misrepresentation".

That means- should you cause an accident, your company could deny coverage. See the problem. Now you become personally responsible for all the damage/injuries you caused.

According to most state law, your car has to be registered in the state where you live. So, if you are living in Arizona ...you will need to get the car registered in Arizona. This is a completely separate issue from insurance. Although, many states require proof of insurance in order to register a car.

Your best bet, is to sit down with your insurance agent. Be completely honest about where you live and where the car is principally garaged. Your agent will then be able to guide you on how to properly insure the car....so that should an accident happen, you will be covered.

ken k

some states allow it some dont

MickeyHCO

Not sure if it's illegal per se, but you might want to call your insurance company to make sure. I mean as long as you have insurance in general, the cops shouldnt bug you. But I wouldnt take that chance.

Fred C

Not exactly, but you don't exactly make your question totally clear.

Your insurance has to be for the place you live, but doesn' t have to be from there. If you had a company in one state licenced to insure in another state you actually lived in, they could insure you, but, of course, to your actual address. However you could not be covered by a policy in another state issued to an address in that state if you didn't live there. In other words, it doesn't matter where your insurance company is, they can cover you in Arizona so long as they are licenced by Arizon to issue insurance. However, that doesn't mean you can keep the same broker, you will likely be assigned a new broker, or given a choice of brokers, in your new home state.

For instance, as a broker, I was only licenced to sell in Manitoba. The exception would be a client in Manitoba who had a second (vacation) home in Ontario. I could insure that as an additional home under the policy for the residence in Manitoba. However, if the person moved to Ontario, and no longer owned property in Manitoba, I could no longer write the policy or renewals. If I had enough demand from clients in another province, of course I could apply for licencing there.

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