No matter where you live, your standard car insurance policy will normally cover you in all 50 states and Canada. Your policy won't cover international travel outside of Canada. Whether you're on vacation out of state or taking a long road trip, you can drive with confidence knowing that you're insured up to the limits of your policy. If you spend a significant amount of time out of state, the situation can get complicated when it comes to the state where your insurance policy should come from.
You may also need an additional policy if you store cars in two different states. If you have an auto loan, lenders often require you to maintain comprehensive and collision coverage to help protect your investment. If you have an accident, collision coverage can pay for damage to your vehicle, no matter who is at fault. Comprehensive coverage can cover damage caused by events other than accidents that are beyond your control, such as acts of vandalism, theft, or weather-related damage.
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. The main reason why car insurance is mandatory in almost every state is because of your personal liability (liability) if you cause 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. Liability is mandatory auto insurance coverage in 49 states, while comprehensive and collision coverage are optional if the car is paid for.
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. Nor is there a multi-state auto insurance policy that originates in two or more states. 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. Comprehensive car insurance and collision insurance are also common types of car insurance coverage, although no state requires them.
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. The medical payment coverage in your auto insurance policy will cover your co-worker's hospital bill up to the limits of your policy. Progressive roadside assistance pays for towing services if your car breaks down for any reason, whether it's on the road or in your driveway. 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.
Insurers consider many other factors when determining the cost of car insurance, such as your age, driving history, where you live, the make and model of the car, and more.