Uninsured drivers may be covered if they borrow an insured car with the owner's permission. Vehicle owner's insurance may cover damage depending on the coverage and limits of the policy. If the policy does not cover some of the damages or they exceed the limits of the policy, the driver could be held personally responsible for covering any additional damages related to the accident. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation, or exclusion that is expressly stated in any insurance policy.
Nor is there a multi-state auto insurance policy that originates in two or more states. If the driver uses your car frequently or lives in your home, your insurer may determine that they should have added it to your policy as a driver. The main reason why car insurance is mandatory in almost every state is because of your personal liability (liability) if you cause an accident. If you have a child who is going to an out-of-state college and has a car on campus, they may need a separate car insurance policy for another state, depending on the state in which they are going to school.
In most cases, your insurance can cover the accident, but depending on the limits of your policy and the details of the accident, the driver's insurance policy may cover all or part of the claim. This is known as rewriting your policy for another state; if your car moves with you, it helps you avoid having to pay for independent insurance coverage outside the state that isn't necessary. By requiring specific liability insurance for victims of an accident caused by you, they can receive financial help for injuries and property damage without seriously affecting their own financial well-being. That's why it's also important to know how much car insurance you need, so as not to jeopardize your personal assets in the event of an accident.
For example, if you live in Connecticut but work outside the state of New York, you would have an auto insurance policy in Connecticut, since the vehicle stays there overnight. However, drivers who choose not to purchase auto insurance must show that they have sufficient funds to meet the state's financial responsibility requirements (PDF) in the event that they cause an accident. No, there is no separate auto insurance policy for several states, since a standard auto insurance policy generally provides out-of-state coverage in all 50 states. Comprehensive car insurance and collision insurance are also common types of car insurance coverage, although no state requires them.
No matter where you live, your standard car insurance policy will normally cover you in all 50 states and Canada.