Report Tag renewal problems - how do you solve it? in Mexico General Posted February 1, 2012 Problem with Texas is that you do have to show proof of insurance - U.S./Texas insurance - to renew your registration each year. Texas also requires an annual safety inspection. So, even if you renew your plates (and buy Texas insurance), when you cross into Texas you after your last safety inspection has expired, you will be illegal until you can get to a garage and have the new inspection done. All in all South Dakota is the way to go. Very easy to deal with as long as you follow the directions exactly - especially the part about contacting Clay County ONLY. You will have to send them your existing title and they will send you a shiny new South Dakota title along with your new plates. Each year after that they will send you a renewal reminder - a post card - and when you send it back along with your check - they will send you new stickers to put on your plates. South Dakota doesn't require that you provide proof of insurance and no annual safety/smog inspection. Your Mexico insurance will cover your car while you are here and as another poster said you can buy short term U.S. insurance if/when you drive back to the U.S. Very easy to do. Just be sure to work directly with Clay County! We are from Texas and switched to South Dakota for all of the reasons you are concerned about.