When planning an international trip, car insurance typically isn’t top of mind. However, if you’re planning to drive in a foreign country, you may not be covered by your domestic auto insurance policy.
Standard car insurance policies in the U.S. don’t usually cover you in other countries, with the exception of Canada. This means you need international coverage if you plan to rent or drive a vehicle. It protects you if you get into an accident and works similarly to the policies issued in the U.S.
If you’re planning to drive while traveling abroad, here are a few things you need to know:
Driving in Canada
Canada is the one country where Americans can drive legally with a valid U.S. driver’s license, at least for a short period of time. For extended periods, travelers will need to acquire an international driving permit. Additionally, if your vehicle is registered in the U.S., you’ll likely need to acquire a Canadian Non-Resident Inter-Provincial Motor Vehicle Liability Insurance Card, also known as a Canadian ID card, from your insurer.
Driving in Mexico
Never take a trip over the southern border and assume your U.S. auto insurance has you covered. A U.S. auto insurance card doesn’t go far in Mexico. Some insurers may include limited coverage as part of their auto policies. However, it generally extends only about 10 miles over the Mexican border. And it still might not be enough to satisfy Mexican legal requirements. Once you go beyond the border zone, you’re on your own, and could end up with fines, liability judgments against you and even jail time. Rather than leave your liability to chance, purchase a standalone auto policy.
Driving Overseas
International car insurance is a must for drivers traveling overseas. You can buy international car insurance in the U.S. or your destination country. Either way, you should ensure the carrier specializes in the country you’re visiting and is familiar with the local requirements. In most countries, you can purchase liability, comprehensive and collision coverage, as well as optional coverage for rental cars. If possible, purchase international car insurance coverage with limits that match what you have in the U.S. Once you obtain coverage, remember to bring your proof of insurance along when you leave for your trip.
Be prepared
Next time you travel abroad, make sure you understand your vehicle coverage needs and options if you plan to drive. If you have any questions, EHD is here to assist. We can help discuss your options, obtain adequate international coverage, and provide proof of coverage.
