Depending on the US State in which you live, the rules and regulations regarding your auto insurance are likely to be different than someone who lives in another state. One thing that all auto insurance companies in the US have in common though, is that the policyholder will be covered when driving in all 50 states and Canada.
When it comes to Mexico, the line starts to blur a little bit. Some auto insurance companies extend their coverage to policyholders driving in Mexico, and some do not. If you live in a border state and frequently drive into Mexico, it’s important to know whether or not your insurance policy is protecting you when you venture forth. If you’re not sure, you can always ask your insurance agent.
All of the above information pertains to people who purchase an auto insurance policy in the state where they live. When you move to another state, things will change. If you’re permanently moving to another state, it’s possible – but unlikely – that your current auto insurance policy will cover you unless you’re with a nationwide provider. If you are, then it’s smooth-sailing as far as your auto insurance policy is concerned. If not, then you should look into buying a new auto insurance policy in the state you’re moving to right away.
Different States, Different Limits
One of the things that varies from state-to-state when it comes to insurance is the minimum legal liability limit. If you have the basic liability insurance required by your state and get into an accident in another state that has a higher legal basic liability limit – don’t worry; your auto insurance coverage can be amended to fit the legal limit of the state in which you’re driving.
It’s important to note that you can’t live in one state and buy an auto insurance policy offered in another state. It’s unfortunate, since some states have insurance laws that can make policies offered there less expensive or more comprehensive, but it’s the law of the land.