My friend Sarah thought she had hacked the system by registering her van in South Dakota through a mail service while living and driving exclusively in San Diego. When she rear-ended a Tesla on the I-5, her insurer not only denied the $40,000 claim but flagged her for “Garaging Fraud” (Rate Evasion). She is now facing a lawsuit from the Tesla driver and is blacklisted from standard insurance carriers.
Key Takeaways
- Registration ≠ Insurance Location: You can legally register a car in South Dakota, but you must insure it where it sleeps.
- The 6-Month Rule: If your vehicle is in a specific state for more than 6 months (cumulative), most policies require you to rewrite the policy for that state.
- Rate Evasion is a Crime: Insurers treat using a false rural address to get lower rates as insurance fraud.
- California/New York are Aggressive: These states actively cross-reference license plate readers with insurance databases to catch out-of-state plates that never leave.
The “Why” (The Trap)
The trap is “Material Misrepresentation of Garaging Address.”
South Dakota, Texas, and Florida are popular for RVers because they have no state income tax and allow mail-forwarding services (like America’s Mailbox or Escapees) to serve as a legal domicile. This is legal for registration and voting.
However, insurance rates are based on risk. A van parked in Sioux Falls, SD (low traffic, low crime) costs $80/month. A van parked in Los Angeles (high traffic, high crime) costs $250/month. If you pay the SD rate but drive in LA, you are underpaying for the risk. If you file a claim in LA and the adjuster sees you have been there for 8 months (via gas receipts or GPS), they deny the claim for fraud.
The Investigation (My Analysis of 3 Major Carriers)
I ran a scenario: A South Dakota registered van that spends 8 months a year in California.
Geico
- The Stance: Extremely strict. When I asked about “extended travel” in California, the agent said, “If the vehicle is in California for more than 30 days, we need to rate it for California.”
- The Risk: Geico relies heavily on automated risk assessments. If their system sees a mismatch between the garaging zip code and where the app tracks you, they will flag it.
Progressive
- The Stance: They allow for travel, but the “Garaging Address” must be where the vehicle spends the majority of the policy term.
- The Workaround: I spoke to a senior underwriter who said, “If you are truly moving around—2 weeks in CA, 2 weeks in AZ, 2 weeks in NV—keep the SD address. But if you park in San Diego for 7 months, you must change the address to San Diego.”
RVer Insurance Exchange (Broker)
- The Stance: This broker specializes in full-timers. They understand the nuance.
- The Solution: They recommended a “Full-Timer” policy that is specifically designed for multi-state usage. It rates you based on your domicile but allows for nationwide travel as long as you don’t settle in one spot for too long.
[IMAGE: Map showing insurance premium heat zones, contrasting SD (Green) vs CA (Red)]
Comparison Table
| Scenario | Geico | Progressive | Full-Timer Specialist |
| SD Registration / CA Usage | Denied / High Fraud Risk | Allowed if moving frequently | Allowed |
| “Stationary” in High Risk State | Must update address immediately | Must update after ~30 days | Must update after ~6 months |
| Premium Cost (SD Address) | $ | $ | |
| Premium Cost (CA Address) | | | |
Step-by-Step Action Plan
- Audit Your Location History: Look at your Google Maps timeline for the last 12 months. Where did the van spend the most nights? That is your insurance home, regardless of your license plate.
- Update Your Policy if Stationary: If you are staying in California (or any high-rate state) for work for 6 months, call your insurer and update the “Garaging Address” temporarily. Yes, the rate will go up, but you will be covered.
- Keep “Movement” Logs: If you keep the SD address, save gas receipts from different states every month. You need proof you are not just living in Venice Beach with SD plates.
- Use a Full-Timer Policy: These policies are designed for this. They expect you to be in different states. A standard auto policy does not.
FAQ
Can I keep my SD plates but insure it in California?
Yes. You tell the insurance company: “The vehicle is registered in South Dakota, but garaged in California.” They will write the policy based on California rates. This is 100% legal and safe.
What happens if I forget to change my address?
If it’s a small claim (cracked windshield), they might let it slide. If it’s a total loss or a liability lawsuit, they will investigate. If they find you lied about location to save money, they deny the claim.
Do mail forwarding addresses count as a garaging address?
For “Full-Timer” policies: Yes.
For “Standard Auto” policies: No. Standard policies require a residential address where the car sleeps.