Some states are taking steps to prevent drivers from registering their cars in other states to save money on their premiums. New Jersey lawmakers recently passed a bill that would make so-called “reverse rate evasion” a form of insurance fraud. Make sure you register you car in the state where you live to prevent problems with your auto insurance. If you need to buy a new policy, get an auto insurance quote.
Why should you register your car in your home state?
If New Jersey’s bill becomes law, it would make reverse rate evasion a fourth-degree crime, meaning violators could be jailed for up to 18 months and face fines. New Jersey isn’t the only state battling this problem. Across the country, drivers register and insure their vehicles in other states to get cheaper premiums. But budget-strapped states are trying to crack down on reverse rate evasion in order to collect registration and other fees.
Registering your car in another state could also put you at financial risk, if you are involved in an accident. An out-of-state policy may not provide you with the minimum coverage required in your home state. This could be problem, if you are involved in an accident and have to file a claim with your insurance company. For instance, several states require you to have uninsured motorist insurance. Make sure you are requesting enough coverage to protect your family, when you get an auto insurance quote.
How to register your car in your home state
If you move to another state, make sure you register your car in your new state within the required time period. If you miss the deadline, you could face costly penalties. Delaware recently increased the fine for not registering your car within 60 days after you move to the state a staggering 1, 500 percent. The penalty jumped from $25 to between $400 and $600. Repeat offenders would face fines between $800 and $1,200 and/or jail time ranging from 10 to 30 days.
Check with your state’s department of motor vehicles to find out how much time you have to register your car after becoming a resident. Also, call your insurance agent to make sure you have the proper car insurance. If your insurance company doesn’t do business in your new state, you will have to get another policy. For the best price, make sure to get an auto insurance quote. Don't let your car insurance lapse, after you move. If you do, you may have to pay higher premiums.
When you are ready to buy a new car policy, you can call agents in your local area, contact insurance companies directly or use InsuranceQuotes.com to instantly get a competitive auto insurance quote from the nation’s leading insurance providers. Simply fill out a simple online form on InsuranceQuotes.com to find the right insurance coverage at the best possible price. Take the time to protect you and your family today.