Does My Car Insurance Cover Me in Another State?

How Car Insurance Works Across State Lines

Your car insurance is valid in all 50 states, but your home state's policy terms govern coverage.

Key principles:

1. Your policy travels with you • Liability coverage applies wherever you drive • Collision and comprehensive coverage extends nationwide • Medical payments (MedPay) or personal injury protection (PIP) applies in all states • Uninsured/underinsured motorist coverage protects you anywhere

2. Your home state's limits apply • Example: You live in California with 100/300/100 liability. You drive to Nevada. Your California limits apply, not Nevada's minimums. • Your deductibles remain the same • Your coverage exclusions remain in effect

3. You must meet the visited state's minimum requirements • If the state you're visiting has higher minimums than your policy, you must meet those minimums • Most policies automatically adjust to meet higher state requirements • Example: You have 25/50/10 (your state's minimum). You drive to a state requiring 50/100/25. Your policy automatically provides the higher limits while you're there.

4. Claims are processed by your insurer • File with your home state insurer, even if the accident occurs elsewhere • Your insurer follows your home state's policy terms • Repairs and settlements may involve local shops and adjusters

Example scenario:

You live in Texas (30/60/25 minimum) with 100/300/100 liability. You drive to Colorado on vacation and cause an accident.

• Your Texas policy applies
• 100/300/100 limits cover the accident (well above Colorado's 25/50/15 minimum)
• Texas insurer handles the claim
• Colorado laws govern fault determination and legal proceedings

For more on how coverage types work, see types of car insurance coverage.

What Happens If Your Coverage Is Below the State's Minimum?

If you're driving in a state with higher minimum requirements than your policy, your insurer typically adjusts your coverage automatically.

Automatic coverage adjustments:

How it works: • Most policies include a provision that automatically raises your coverage to meet higher state minimums • Applies temporarily while you're in that state • No additional premium (included in your policy) • Returns to your home state limits when you leave

Example 1: Higher minimums

You live in Florida (10/20/10 PIP-only state) and drive to Georgia (25/50/25 required).

• Your Florida policy automatically provides 25/50/25 liability while in Georgia
• No action required on your part
• Coverage reverts to Florida limits when you return

Example 2: State-specific coverage

You live in a traditional tort state and drive to Michigan (no-fault PIP state).

• Your policy provides the required PIP coverage while in Michigan
• Your insurer handles Michigan's unique no-fault laws

When automatic adjustments don't apply:

Rare situations where coverage may not adjust: • Very old or non-standard policies • Self-insured vehicles • Specialty or collector car policies

Verification:

Call your insurer before long trips to confirm: • Coverage extends to all states • Automatic adjustments apply • No policy restrictions on out-of-state driving

Why this matters:

If you're in an accident in a state with higher minimums and your policy doesn't automatically adjust, you may face: • Legal penalties for not meeting state minimums • Personal liability if damages exceed your coverage • Fines and license suspension

Bottom line:

Carry at least 100/300/100 liability. This exceeds minimums in all states, eliminating worry about adjustments and providing strong protection.

For guidance on coverage amounts, read how much car insurance do I need.

Moving to a New State: What Changes

Temporary visits are covered, but moving permanently requires updating your policy and registration within 30–90 days.

Temporary visits (vacation, work trip, college):

• Your existing policy covers you
• No changes required for trips under 6 months
• Students away at school: Often covered under parents' policy (verify with insurer)

Permanent moves:

When you establish residency in a new state, you must:

1. Update your car insurance (within 30–90 days) • Notify your insurer of the move • Obtain a new policy compliant with the new state's laws • Transfer to an insurer licensed in the new state (if yours isn't)

2. Register your vehicle in the new state • New license plates and registration • Requires proof of insurance from a local insurer • Deadlines: 10–90 days depending on state

3. Obtain a new driver's license • Required within 30–90 days of moving • Surrender your old license

How rates may change:

Moving to a new state can dramatically affect your premiums:

• Expensive states: Michigan, Louisiana, Florida, New York
• Cheaper states: Idaho, Maine, Vermont, Ohio
• Rate factors: State laws, accident rates, weather, litigation environment, required coverage types

Example rate changes:

• Moving from Ohio to Michigan: +60–100% increase (Michigan has highest rates)
• Moving from New York to North Carolina: -30–50% decrease
• Moving from California to Texas: -20–40% decrease

What happens if you don't update:

• Policy cancellation: Insurer may cancel if you misrepresent your address
• Claim denial: Out-of-state address can void coverage
• Legal penalties: Driving uninsured, registration violations
• Fines: $100–$1,000+ for improper registration

Military exemptions:

• Active-duty military can keep home state insurance and registration
• Spouses also qualify in most states
• Verify with your state's DMV

Best practice:

Research insurance rates before moving. Factor premium differences into your decision—costs can vary by $1,000+ annually.

For state-specific minimums, see minimum car insurance requirements by state.

Rental Cars in Other States

Your personal auto insurance extends to rental cars in all 50 states, following the same rules as your own vehicle.

How coverage works:

1. Your policy covers rentals nationwide • Liability applies in all states • Collision and comprehensive extend to rentals (if you have them on your personal vehicle) • Same deductibles apply • Same limits apply

2. State minimums still apply • Your policy adjusts to meet the rental state's minimums • Automatic, no action required

3. Rental company's location doesn't matter • Coverage follows you, not the rental company's state • Example: Rent in Nevada, drive to California—your policy covers both states

Example scenario:

You live in Ohio, fly to Arizona, and rent a car. You have 100/300/100 liability, $500 collision deductible.

• Your Ohio policy covers the Arizona rental
• Arizona's 25/50/15 minimum is exceeded by your 100/300/100
• Collision damage: Covered minus your $500 deductible
• No need to buy rental insurance (unless you want zero hassle)

When to buy rental insurance:

Consider rental company coverage if: • You lack collision/comprehensive on your personal policy • You have a high deductible ($1,000+) • You're renting a luxury or exotic vehicle • You want to avoid filing a claim on your personal policy

Credit card coverage also applies:

• Many credit cards provide secondary (or primary) collision coverage
• Applies regardless of the rental state
• Verify your card's policy before declining rental insurance

For more on rental car coverage, see our guide on types of car insurance coverage.

What About Canada and Mexico?

Canada is usually covered; Mexico requires separate insurance.

Canada coverage:

Most U.S. auto policies extend to Canada: • Liability, collision, comprehensive apply • Same limits and deductibles • Proof of insurance: Carry your insurance card (accepted in Canada)

What to do before driving to Canada:

• 1. Call your insurer
• Confirm Canada coverage
• Request a Canadian insurance card (if required)

• 2. Verify coverage limits
• Ensure limits meet Canadian requirements (typically higher than U.S.)
• Carry proof of financial responsibility

• 3. Understand claims process
• File claims with your U.S. insurer
• Canadian law may govern fault and liability

Mexico coverage:

U.S. auto policies typically DO NOT cover Mexico.

Why Mexico is excluded: • Mexican law requires insurance from a Mexican-licensed insurer • U.S. policies are not recognized • Driving without Mexican insurance can result in jail time (yes, jail)

How to get Mexico coverage:

• 1. Buy Mexican auto insurance
• Available online or at the border
• Short-term (daily) or long-term options
• Costs: $20–$50/day, $200–$500/year

• 2. Coverage options
• Liability (required by law)
• Physical damage (optional but recommended)
• Medical payments and legal assistance

• 3. Recommended providers
• Baja Bound
• Mexpro
• Sanborn's

What happens if you drive in Mexico without coverage:

• Accident: You're detained until liability is established
• Serious accidents: Jail until financial responsibility is proven
• No U.S. insurer help: Your policy doesn't apply

Bottom line: • Canada: You're covered (verify first) • Mexico: Buy Mexican insurance (non-negotiable)

For more on coverage requirements, read minimum car insurance requirements by state.

Filing a claim out of state follows the same process, with a few additional considerations.

Immediate steps at the scene:

1. Ensure safety • Check for injuries • Move to safety if possible • Call 911 if needed

2. Call local police • Obtain a police report (critical for out-of-state claims) • Get the report number • Some states don't require police for minor accidents—check local laws

3. Document everything • Photos of all vehicles, damage, scene • Other driver's information (license, insurance, contact) • Witness contact information • Road conditions, weather, time of day

4. Do not admit fault • State facts only • Let insurers and police determine fault • Different states have different fault rules

Filing the claim:

1. Contact your insurer immediately • Call within 24 hours (required by most policies) • Your home state insurer handles the claim • Provide police report and documentation

2. Understand the local state's laws • Fault vs. no-fault: The accident state's laws govern liability • Comparative negligence: How fault is apportioned varies by state • Statute of limitations: Deadlines for filing lawsuits differ

3. Work with local adjusters or shops • Your insurer may send a local adjuster • Repairs can be done locally or at home (your choice) • Keep receipts for rental cars, towing, etc.

4. Follow up • Stay in contact with your claims adjuster • Provide requested documentation promptly • Understand settlement terms

Challenges with out-of-state accidents:

• Different state laws: Fault determination and liability rules vary
• Distance: Harder to inspect damage, coordinate repairs
• Local legal proceedings: Lawsuits filed in the accident state
• Unfamiliar processes: Each state has unique claims procedures

Your insurer handles most complications:

• Works with local authorities and shops
• Understands out-of-state claims processes
• Coordinates across state lines

Best practices:

• Carry a copy of your insurance card at all times
• Know your policy limits and deductibles
• Understand your insurer's 24/7 claims hotline
• Keep your policy documents accessible (digital copies on your phone)

For more on how claims work, see what does car insurance cover.

Tips for Road Trips and Out-of-State Driving

Prepare before hitting the road:

Before your trip:

1. Verify coverage • Call your insurer to confirm out-of-state coverage • Check policy for any travel restrictions • Verify coverage extends to Canada (if applicable)

2. Review your limits • Ensure you have adequate liability (at least 100/300/100) • Verify collision and comprehensive deductibles • Consider increasing limits before a long trip

3. Carry proof of insurance • Insurance card in your vehicle (required by law) • Digital copy on your phone • Policy documents accessible

4. Know your insurer's contact info • Save claims hotline in your phone • Note your policy number • Emergency roadside assistance number (if included)

5. Understand rental car coverage • If renting during your trip, verify your policy covers rentals • Decide in advance whether to buy rental insurance

During your trip:

1. Drive defensively • Unfamiliar roads increase accident risk • Different state traffic laws (speed limits, right on red, etc.) • Weather conditions may differ from home

2. Be prepared for emergencies • Know where your insurance card is • Have local emergency numbers saved • Understand where the nearest hospital is

3. Avoid high-risk situations • Don't drive impaired • Avoid aggressive driving • Follow local traffic laws

After your trip:

• Report any incidents to your insurer (even minor ones)
• Keep records of any accidents or claims
• Review your policy—adjust coverage if needed

Additional coverage to consider:

• Roadside assistance: Towing, flat tire, lockout coverage (often $10–$20/year)
• Rental reimbursement: Covers rental car costs if your vehicle is disabled (optional add-on)
• Travel insurance: Covers trip cancellation, medical emergencies, lost baggage (if flying to destination)

For more on preparing for trips, see types of car insurance coverage.

Frequently Asked Questions