Car insurance rates are calculated based on the specific rates of your state (where you reside). This is why your insurer will not like it if you buy insurance from one state but live in a different one. What about if you live in two states and switch back and forth between them at different times of the year? In that case, these four questions may determine where to buy coverage:
Where Is Your Vehicle Registered?
Most states will not allow you to register a car without having insurance from the same state. If that is the case in your state, and you already have a car, then it makes sense to continue with the insurance and registration from the same state. If you are still in the stages of acquiring a car, buy insurance from the state that has this requirement to prevent difficulties with registration.
Where Do You Spend Most of the Time?
Buy auto insurance coverage in the state where you spend most months of the year. So, if you live three months in California and the rest of the year in Colorado, then it makes sense to buy your auto insurance in California. It makes sense that the risk of being involved in a claim-worthy incident is higher in the state where you will be spending most of your time.
What Are the Respective Insurance Rates?
If you are lucky, then you may find that neither state requires you to have insurance before registering your car within its borders. In such a case, the decision of where to insure your car boils down to personal preference. In that case, it makes sense to buy coverage from the state with low insurance rates. Of course, this reasoning only makes sense if you will be spending approximately the same months in each state.
How Long Will You Have This Arrangement?
If your plan of living in another state is only temporary, then you might not have to worry about where to insure your car. For example, if you will be living in another state for a three-month job assignment, just continue with your existing insurance (coverage from your permanent state). Of course, policy details differ on this issue, so consult your insurance agent to confirm that is it okay with your insurer and to know the time limits.
Note that these are general guidelines to give you some idea of how car insurance works for residents of different states. To make sure you are always covered wherever you are, consult your insurer or insurance agent before making a change.
For more information, contact Ahlquist Insurance or a similar company.