U.S. car insurance for short-term visitors
For short-term visitors to the U.S., whether traveling for business or leisure, navigating car insurance requirements can be a key part of planning their trip. For those who opt to rent a car, the most practical solution is often to obtain rental car insurance directly from the vehicle rental company. This approach simplifies the process, as short-term visitors generally are not eligible to purchase policies directly from standalone car insurance providers in the U.S.
Vehicle rental companies usually provide a range of insurance options. These include minimum liability coverage, collision coverage or loss-and-damage waivers, personal effects coverage and personal accident coverage. Opting for one or more of these insurance choices can provide adequate protection for short-term stays in the U.S., aligning with the specific needs of the visitor.
For Canadian drivers, the situation typically proves more convenient. Canadian auto insurance policies are typically valid in the U.S., and in many cases, these policies may extend to cover rental vehicles. However, it is advisable for Canadian drivers to verify the extent of their coverage with their insurance company, as well as with the rental car company, to ensure adequate protection during their stay in the U.S.
U.S. car insurance for long-term visitors
A big part of a long-term visitor’s stay can be locating appropriate auto insurance, especially if they are students or skilled workers travelling on a visa. Even though it can be difficult for foreigners without an American driver’s license to find cheap auto insurance in the United States, there are still reasonable possibilities. Even if they currently possess a valid driver’s license from their home country, it is nevertheless possible—and even recommended—for these persons to apply for a U.S. driver’s license.
Obtaining auto insurance may be made simpler if you hold a driver’s license issued in the United States. The majority of insurance companies prefer policies issued in the United States because they can more precisely determine the driver’s risk profile. This action might make it easier for foreign drivers to get auto insurance in the United States and possibly result in cheaper premiums. Furthermore, establishing a driving record in the US could pay off in the long term because insurance rates are typically reduced with time when a driver has a history of safe driving.
International drivers permits
Know the local laws about the duration of time you can lawfully drive a car with a foreign licence if you intend to drive a driver’s licence issued in your home country while you’re visiting the United States. A foreign driver’s licence may only be valid for three months at a time.
If you intend on staying stateside longer than a handful of weeks, some states advise you to get an international driver’s permit (IDP). Even if an IDP is not mandatory, having one may be a good idea. The document doesn’t replace your foreign-held driver’s license — it serves as an accompanying translation of it. If you get pulled over, the officer can look up the translation of your foreign driver’s license in the IDP booklet in the language of their choice and see that you are a valid driver.
To get an international driver’s permit, contact your home country’s traffic or motor vehicles agency to apply for one before you plan to leave. It may take around two weeks to receive your IDP, so be sure to apply well in advance. An IDP is typically valid for one year from when you get it and includes your information displayed on the driver’s license. You will likely need to provide a passport-style photo that the agency can attach to the IDP.
U.S. car insurance requirements
Car insurance for international drivers in the U.S. also depends on where you plan on staying. Each state in the U.S. has its own rules and insurance requirements. Most states only ask for liability insurance to legally drive, which helps pay for damage and injuries others sustain in an accident you cause. A few states also require you to have underinsured/uninsured motorist insurance, which kicks in to help pay your expenses if the party at fault does not have insurance.
In the United States, car insurance requirements can vary from state to state, but there are some common elements and minimums typically mandated:
- Liability Coverage: This is the most basic type of car insurance required in almost all states. It covers injuries and property damage that you cause to others in an accident. Minimum limits are usually expressed as three numbers, such as 25/50/25, which mean:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage liability per accident
- Uninsured/Underinsured Motorist Coverage (UM/UIM): This coverage protects you if you’re in an accident caused by a driver who doesn’t have insurance (uninsured) or doesn’t have enough insurance (underinsured). UM/UIM coverage limits are often similar to your liability limits.
- Personal Injury Protection (PIP): Required in some states, PIP covers medical expenses for you and your passengers regardless of fault in an accident. It may also cover lost wages and other costs related to injuries from an accident.
- Medical Payments (MedPay): Similar to PIP but not as common, MedPay covers medical expenses for you and your passengers regardless of fault, up to a certain limit.
- Collision Coverage: This optional coverage pays for damage to your car resulting from a collision with another vehicle or object.
- Comprehensive Coverage: Also optional, comprehensive coverage pays for damage to your car caused by something other than a collision, such as theft, vandalism, or weather-related incidents.
omparing auto insurance rates can help you find the best coverage at the most affordable price. Here are some steps you can take to compare auto insurance rates effectively:
- Identify Your Coverage Needs: Before comparing rates, determine the type and amount of coverage you need. This could include liability, collision, comprehensive, uninsured/underinsured motorist, and any additional coverage you require.
- Gather Quotes: Obtain quotes from multiple insurance companies. You can do this online through insurance company websites, comparison websites, or by contacting insurance agents directly.
- Compare Coverage Options: When comparing quotes, make sure you’re comparing policies with similar coverage limits and deductibles. A policy with a lower premium may have higher deductibles or less coverage.
Do I need to buy car insurance if I visit the U.S.?
Car insurance is legally required for all foreign visitors operating a vehicle in the U.S. (except in New Hampshire), regardless of how temporary your stay may be. If you plan on driving a rental car in the U.S., most rental companies will offer travel car insurance. This is the option to purchase coverage for the entire rental period, as the protection extends to the rental vehicle itself.
Yes, if you plan to drive a car in the United States, you typically need car insurance. Most states in the U.S. require drivers to carry a minimum amount of liability insurance to cover costs associated with injuries or property damage in the event of an accident.
If you’re visiting the U.S. and plan to rent a car, rental companies usually offer insurance options that you can purchase directly from them. This often includes liability insurance as well as coverage for the rental vehicle itself.
If you’re borrowing a car from a friend or family member, their insurance policy may cover you as a temporary driver, but it’s important to verify this with them and their insurance company.
