International Car Insurance

 
Those who will be driving abroad, either for business or for pleasure, should be aware that they may need to purchase international car insurance. Typically, a standard United State insurance policy will not cover accidents that occur while driving abroad, though it is not uncommon for policies to cover accidents that occur in neighboring countries (Canada and Mexico). It is important to check with the embassy of the target country to determine the amount and type of coverage needed before you begin your trip abroad.

Most rental car agencies offer international car insurance, but the amount of coverage may be less than what is required by the laws of the country you are visiting and will typically be less comprehensive than the coverage you receive from your standard policy. Some nations require that all drivers must be covered by a policy from a company that is local to the country. In this case, you will have to purchase insurance from a third party company (unless your insurance company has a branch in the host country).

The insurance requirements can vary widely by country. For example, Canada requires a minimum of two hundred thousand dollars of liability insurance, which is much higher than what is typically required in the United States. Mexico requires that all drivers either carry certain amounts and types of coverages.

If you find that you do not have adequate international car insurance, it is possible to arrange the purchase either before your trip in your home country or after you reach your destination. Many countries that are popular travel destinations have rather simple insurance policies and have insurance companies that focus solely on foreign drivers.

Traveling abroad can be stressful. It is best to not have to deal with the hassle of obtaining international car insurance while at the same time dealing with customs, passports, visas, and all of the other accoutrements of international travel. International car insurance is a predictable requirement and one that should be taken care of early in the travel planning process.