Can I lease a car in a different state than I live and insure it in a different state?

munchosmunchos Member Posts: 4
edited May 2017 in General
Hello all, and thank you in advance for your help. So the pickle I am in is this:

I currently live and work in Washington, DC, but I am quitting my job and moving back to Michigan-my home state and the state that I have my license from-this summer. I am only moving back for a few months, however, before I head off to law school in Illinois. I would like to lease a car when I move back to Michigan, which I would then take to school with me in Illinois. Just for information purposes, I have very good credit.
So my first question is:

1. Would I have any issue leasing a car in Michigan before I quit my job/move back from DC (i.e. before I completely move back to Michigan I plan to fly home and lease a car while I still have a job in DC so that it is easier for me to get a good lease).

3. Going off my last question, if I have very good credit do I even need to fly back to lease a car before I quit my job, or could I just wait until I completely move?

3. Michigan has very high insurance rates. Could I lease the car in Michigan and then, once I move to Illinois two months later, insure the car there?

Please let me know if I can be more specific or answer any questions. Thank you all very much.

Answers

  • kyfdxkyfdx Moderator Posts: 191,199
    1) Seems like you'd have to have a Michigan address that matches the one on your driver's license. Otherwise, no issue, I don't think.
    2) It might be easier to lease, if you have a job. (just like any auto credit)
    3) If you are only going away to school, but have your home address and license in Michigan, you'll probably have to keep your car insurance there.

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  • munchosmunchos Member Posts: 4
    What if I moved to Illinois for law school and got a new license? Could I then switch my insurance from Michigan to Illinois?
  • kyfdxkyfdx Moderator Posts: 191,199
    munchos said:

    What if I moved to Illinois for law school and got a new license? Could I then switch my insurance from Michigan to Illinois?

    Sure, if you establish residency.

    But, you'll be moving from a monthly tax state, to a state that taxes leases upfront. That might present a problem (or not).

    Have you actually checked the rates in Illinois? It might not be any cheaper.

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  • munchosmunchos Member Posts: 4
    I shouldn't have a problem establishing residency since, of course, I will be living there while I am in law school. I haven't actually gotten a quote for both states, but a simple Google search shows that Michigan is far-and-away the most expensive state to insure a car.
  • kyfdxkyfdx Moderator Posts: 191,199
    munchos said:

    I shouldn't have a problem establishing residency since, of course, I will be living there while I am in law school. I haven't actually gotten a quote for both states, but a simple Google search shows that Michigan is far-and-away the most expensive state to insure a car.

    I'd find out for sure, for your particular situation, before I'd make plans on a $20K-$40K lease/purchase.

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  • munchosmunchos Member Posts: 4
    From whom would I be able to get this information from? Illinois' Secretary of State?
  • MichaellMichaell ColoradoModerator Posts: 186,561

    munchos said:

    From whom would I be able to get this information from? Illinois' Secretary of State?


    Probably the department of revenue. 

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