Yes but there are situation of when you need to notify your insurance carrier. IE: If that vehicle is permanently garaged in the other state. For Example if you are visiting or working in another state for an extended amount of time your fine. If you or a kid is at college in another state they are fine.
The owner of the car has to register the vehicle. The person on the registration must insure the vehicle, or be listed to drive that vehicle on a family policy. That example sounds close to insurance fraud so please correct the situation. Sell the car to the other person and they have to insure it. Actually it is 100% legal for a person to insure a vehicle registered in someone elses name so long as nothing illegal is going on...it can be the parents etc.....
You must insure your car where it is tagged. yes you can live in one state and work in the other. if you live in the state where you work get a po box in the state where the car is tagged. If you "stay in that state", it can make you a "resident." In many states you must register and insure a vehicle used in that state if you are a "resident", under their interpretation, or if your vehicle is parked or garaged in their state for more than a minimal part of a year (e.g., 30 days in Massachusetts). At the very least, you may be required to demonstrate financial responsibility to continue exercising the driving privilege if you're caught with an invalid out-of-state registration.
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