How should I handle changing car insurance policies for a short term move?

March 4, 2009 1:04 PM

I'm moving out of state - from PA to NY - for a short-term job (roughly a year). Can I have a PA car insurance policy?

I've heard NY and NJ auto insurance policies are ridiculously expensive.

Since I'll still have a PA license, and a permanent PA address (my parents), can I just keep PA auto insurance? My current policy is about to renew, and I've been shopping around and finding some great quotes for PA.

So would this be entirely legal? If not, is it risky?

posted by pilibeen to travel & transportation (11 comments total)

I believe that you have to have insurance in the state where the car is regularly garaged - I could be wrong, since I've only had a car for the last about 18 months and so a total newbie. But if you take the car to NY, that's where you are living, garaging it and using it, you should have NY insurance. I believe the penalty is that if you have an accident or make a claim and the insurance company finds out you misled them on this point, they may be able to deny coverage.

That's my best guess.
posted by bunnycup at 1:30 PM on March 4, 2009

This is a bad idea. When the insurance company asks for your address, they are talking about where the car will be garaged overnight most of the time - aka your residence. They are entirely able to deny coverage if it comes to their attention that you are not in fact living in PA.

So, no, it's not legal. And yes, it is risky, as you may not be covered in the event of an accident, which means you'd pay out of pocked for your expenses, and if the incident is your fault, you'd owe the other guy money.

You've shopped around for PA quotes, but you've only heard that NY and NJ quotes are ridiculously expensive. You can't get a NJ policy if you're living in NY (for the same reasons above), but why not get a quote for NY insurance before inquiring the illegal route and make a decision based on that. I've seen some terrific NY rates and some horrifying PA rates - you might be surprised. And if NY is too expensive, it's still better than paying for PA coverage you could be denied for if you had to use it.
posted by sephira at 1:41 PM on March 4, 2009

If you have a PA license, address, and tags (license plates), you should be fine with PA insurance.
posted by torquemaniac at 2:01 PM on March 4, 2009 [1 favorite]

Coverage requirements may be different between NY & PA as well. So, if you get into an accident in NY with your PA coverage, and it comes out that you don't have the requisite coverage for NY, you may be have problems there as well.
posted by kellyblah at 2:02 PM on March 4, 2009

IF the address you provided the insurance company when you signed up for coverage
and if you represented that address as the address at which you park your car regularly
and that address is no longer the address at which you regularly park your car
and you get in an accident near that new address
and the insurance company asks you what you were doing in New York
and you tell them the truth (that you live there)
they could deny your claim, couldn't they?

IANAL
posted by kid_dynamite at 2:29 PM on March 4, 2009

Ok, so I need to be insured for my temporary NY address. Does that also mean I need to pay for NY registration? This job is only a year.
posted by pilibeen at 2:34 PM on March 4, 2009

Does that also mean I need to pay for NY registration? This job is only a year.

Even worse. Not only should you pay for NY registration, you should also get a NY drivers' license. NY State considers you a resident if you live there for more than 3 months.

Section 250 (5) of the Vehicle and Traffic Law defines the term "resident." The law defines a resident as a person who lives in NYS with the intent to make NYS a "fixed and permanent" place to live. To live in a house, a home, an apartment, a room or other similar place in NYS for 90 days is considered "presumptive evidence" that you are a resident of NYS. A police officer can use this evidence as the reason to issue a traffic ticket if you drive in NYS without a driver license or vehicle registration issued by NYS. [source]

posted by dersins at 2:45 PM on March 4, 2009

Even worse. Not only should you pay for NY registration, you should also get a NY drivers' license. NY State considers you a resident if you live there for more than 3 months.

Section 250 (5) of the Vehicle and Traffic Law defines the term "resident." The law defines a resident as a person who lives in NYS with the intent to make NYS a "fixed and permanent" place to live. To live in a house, a home, an apartment, a room or other similar place in NYS for 90 days is considered "presumptive evidence" that you are a resident of NYS. A police officer can use this evidence as the reason to issue a traffic ticket if you drive in NYS without a driver license or vehicle registration issued by NYS.

But in this case I have no intention of making NYS a fixed and permanent place to live. I'm taking this job (which I should clarify, is actually a paid internship) and am provided housing through the employer. After this year-long internship, I have to find work elsewhere...which could be anywhere.
posted by pilibeen at 3:08 PM on March 4, 2009

The above advice is correct in re your car insurance policy: policies are written with the assumption that the car is garaged at the address stated on the policy. If you keep it elsewhere, even in-state, the insurance company can at least theoretically deny coverage, because they base their premium structure on your location. I have worked for an auto insurance company, so I do know something about this.

I have no intention of making NYS a fixed and permanent place to live. I'm taking this job (which I should clarify, is actually a paid internship) and am provided housing through the employer. After this year-long internship, I have to find work elsewhere...which could be anywhere.

Be that as it may, state governments consider you a "permanent resident" if you stay somewhere longer than a few months and aren't in school. It sounds to me like you're going to have to switch your residence, as "paid internship" or no, this looks like a job as far as the state is concerned. People take assignments like this all the time. You're just going to have to deal with the logistics.
posted by valkyryn at 3:43 PM on March 4, 2009

But in this case I have no intention of making NYS a fixed and permanent place to live.

Re-read the passage I quoted from the NYS DMV site-- your intentions are irrelevant to the state of New York, which considers you a fixed and permanent residence if you "live in a house, a home, an apartment, a room or other similar place in NYS for 90 days" even if you plan on leaving on the 91st day.
posted by dersins at 3:54 PM on March 4, 2009

which considers you a fixed and permanent residence resident

FTFM.
posted by dersins at 3:55 PM on March 4, 2009