Do I Need Multi-State Car Insurance for Out-of-State Coverage?

If you frequently travel or stay out of state, whether for business or by lifestyle choice, you may have noted the subtle — and sometimes not-so-subtle — differences in driving styles and conditions between states.

Exploring new states should be fun and seamless. But we’ve all heard the stories of that one experience that’s unforgettable for all the wrong reasons, especially when it happens during the holidays. There’s nothing like a near miss when you’re driving far from home to prompt the question:

“Do I need multi-state car insurance coverage?”

While in most cases, the answer to that question is “no,” there may be times when it is appropriate. So, let’s look at multi-state insurance to learn when you may need additional coverage.

How Does Car Insurance Work When Traveling?

The easiest way to think about your insurance is to imagine it as your shadow: wherever you go, it follows you. The home state where you register your car doesn’t change when you travel, so neither does your insurance.

Of course, different states require different insurance coverage, or in some cases, none at all. But, as long as you insure your car in the state where you live, interstate travel will not affect your coverage.

An important thing to keep in mind, though, is that different states have different requirements for showing proof of insurance if you are pulled over. Even if you’re not required to carry your proof in your home state, you may be expected to produce it during a traffic stop in another. Failure to have it handy could be costly.

It is also important to note that if you become subject to a motor vehicle incident that leads to that state’s laws imposing insurance requirements that are greater than what your policy provides, then your policy will automatically be increased to meet the minimum amount of liability coverage required by that state’s law.

Can I Have Car Insurance in Another State?

While it’s less common, there are two scenarios when out-of-state car insurance is appropriate.

The first is if you live in one state but work in another and you keep a different vehicle at work. Insurance is generally established by where the car is. So, the car you keep at home would have one policy, and the work car would be insured in the state where you work.

The second scenario is one where you own another home out of state.

If you keep a car in your primary home state and another at your secondary home in a different state, you will need two policies — one for each vehicle. These policies are completely independent of one another. The policy on one car would not cover the other and vice-versa. Two different policies cannot cover a single car.

What if I Moved to a New State?

In the event you relocate your primary residence from one state to another, that is a different matter altogether.

Remember, insurance is determined based on where the car is. If you bring your car with you when you move (as opposed to leaving a work car behind, for example), you will be required to register and insure your motor vehicle in your new home state based on the insurance requirements of that locality.

Once that vehicle is insured in the new state, the same rules apply: your insurance goes wherever you do.

What if I Spend Winter in Another State?

If you like spending the winter in the sun instead of the snow, you are subject to what’s known as the “snowbird” rule or exception.

Even though you’re actually residing somewhere else during the winter, it’s temporary. Your insurer generally recognizes this is a temporary relocation, and your policy doesn’t change as a result.

As always, though, keep your insurance agent informed about any long-term changes so they can help keep your policy current. A great option is roadside assistance coverage to make sure you’re never in a jam while you’re on the road.

Stay Covered, Near and Far

Whether you’re out of town on a weekend getaway or soaking up the sun to dodge the winter chill, good auto insurance is just good sense. Talk to a local agent today to make sure you’ve got the peace of mind to enjoy your away time!

ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York).  The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.

The insurance products and rates, if applicable, described in this blog are in effect as of January 2024 and may be changed at any time. 

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions. 

The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia or New York.  ERIE long term care products are not available in the District of Columbia and New York. 

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.