Who doesn't want cheap car insurance? Especially in this recession, every penny helps and with the cost of car insurance in some major metropolitan areas skyrocketing, you are wise to look into all your options.
I see many vehicles parked regularly on the streets of New York City with Florida license plates. There is nothing illegal about having plates from out of state. In fact, you can legally have plates from out of the country. They can street park, they can do whatever they want and they are of course still subject to American traffic laws, including local laws in the area they are visiting.
But many of those people with Florida plates are in fact doing something illegal. They actually live in New York City but have some mailing address somewhere in Florida, such as a relative, or a vacation home, or even just a mailbox, and they register their cars in Florida in order to pay the lower car insurance rates from Florida.
If you live and work in a particular area, you are legally required to register your car there. If these people were to get into an accident and it goes to court, they could be fined and possibly even jailed for the privilege of having Florida plates and slightly lower car insurance. You have to buy your car insurance where you live.
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