State to state insurance changes for autos?

By Admin On June 2, 2011 · Leave a Comment

Question:

I have moved from LA to AL. I heard that AL has lower rates than louisiana does. I was thinking about changing my insurance over…BUT… A family member has been driving my car for several months now. Just here and there. (I’ve now got a company car that I use) But the car is in LA still. They are not in a position to buy and I feel like it’s worth it to let someone drive. I owe on the car so it is fully insured. My cost is $591 every 6 months. Should I just leave things alone? Or do I need to get my AL license, re-register car to new address, AND change over insurance?

Answer/s:

Talk to your LA agent about where the best place to insure the car is. Since it’s principally garaged in LA, I’m inclined to say you would insure it there. However, since your relative is the regular user of the car, you will need to list them on the policy as a driver. Otherwise, coverage could be denied if your relative were in an accident while driving the car. Since you are living in AL – you will have to get your drivers license changed over to AL.

No. The car MUST be insured in the state that the car lives in, not where you live. So, you leave the insurance where it is and just add your family member to the insurance policy as a driver. Easy, no problem.

You can compare how the insurance quotes would change, for example here – autoinsurance.bebto.com