Here's what you need to know...
- U.S. car insurance will cover you when driving abroad in Mexico or Canada
- U.S. drivers should buy rental car insurance if they plan to drive abroad
- Rental car companies may allow you to buy insurance coverage at the counter when you book the rental
Does auto insurance cover you when driving abroad? That depends on what country you are visiting. U.S. auto policies typically cover you when driving in Mexico or Canada, but if you plan on leaving the continent, you will need the right policy.
There are different laws and regulations regarding car insurance for car owners, so it’s important to know those differences. In addition, some car insurance is not valid at all once you cross the border into another country. So, if you travel a lot to other countries or are planning to travel to another country soon, consider renting a car and buying rental car insurance.
Keep reading to learn more about car insurance abroad, how much international auto insurance costs, and where you can get the most affordable rental insurance to cover you when driving abroad.
Table of Contents
American Auto Insurance When Driving Abroad
Will American auto insurance cover a rental overseas? The short answer is, “no.” In general, the car insurance that you carry on your car in the U.S. will not work overseas because you are not driving the same car.
Read More: What Is Covered by Auto Insurance
Unless you plan to have your car shipped overseas, you will not have your car with you when you land in another country. You will be driving a rental car.
Since the rental car is a different car than the one you normally drive, your current insurance will not do.
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Auto Insurance Coverage Options When Driving Abroad
The solution to making sure you are covered when you are abroad is to either get rental car insurance or vacation insurance for any other expenses you might have on your vacation that you forfeit due to an accident, illness, or other situation.
Rental Car Insurance
Rental car insurance covers the rental vehicle you drive while abroad. It is brand new insurance that is good only for the time that you rent the car.
While you are driving the rental, you are responsible for any damages incurred. Sometimes the rental car company will offer insurance in order to protect their investment. If you choose not to purchase rental car insurance from the rental company, you will need to compare insurance companies to see where you can find car rental insurance abroad.
Should you drive without either type of coverage, you are setting yourself up for disaster if an accident occurs during your trip.
Vacation Insurance
Vacation insurance — or travel insurance as it is often called — can be very misleading because it sounds like it might cover rental car insurance on one’s vacation.
Vacation insurance, however, is not car insurance. It only covers the loss of valuable items or unforeseen expenses while on vacation. It will also cover losses if your vacation is canceled or cut short because of illness or other emergencies. Coverage typically includes accommodations, recreation expenses, or other rentals.
While vacation insurance is a good thing to consider if you are planning a trip abroad, it in no way provides insurance for your rental car.
Read More: How to Get an Insurance Quote Without a Car
Tips on Getting the Best Auto Insurance When Driving Abroad
Here are some good tips on how to get the best rental car insurance when you are abroad:
- Book your rental in advance of your trip.This will allow you to compare prices of different insurance companies ahead of time so you won’t be rushed to research the best deal once there.
- Take advantage of added coverage.Consider whether or not you would like to add roadside assistance options, replacement parts coverage, and other items to your policy.
- Read through your current auto insurance policy.Check your current policy to see if there is anoption for international coverage or rental car coverage. Then ask your agent to compare policies to see which offers the best deal when you plan to travel abroad.
- Track your purchases. Use a credit card when reserving your rental car so that there will be a way to track the rental car purchase. Check theregulations of international insurance and travel and compare them with what your company offers when you are shopping for coverage.
Check with the U.S. government to ensure you have everything you need before visiting and driving in another country. It is important to make sure you are covered from accident, theft, or damage when traveling abroad with the right policy.
How to Find Auto Insurance to Cover You When Driving Abroad
The first step in getting car insurance when traveling abroad is to shop and compare. See if any of the policies you are considering have rental car insurance for international travel. Some companies carry car insurance that you can add to your current policy or as an extra rider that you purchase.
Remember, the car you are driving in such circ*mstances is not your own. So your normal car insurance may not work, but you are still liable for damages if you are in an accident.
Frequently Asked Questions
Does auto insurance cover you when driving abroad?
In general, most standard auto insurance policies won’t cover you when driving abroad. It’s important to check with your specific insurance provider and understand the rules and coverage limitations. If you’re driving a rental car overseas, your current insurance policy for your personal vehicle will not apply.
What auto insurance coverage options are available when driving abroad?
To ensure you’re covered while driving abroad, you have two main options. The first is to purchase rental car insurance offered by the rental car company to protect yourself and the vehicle during your rental period. The second option is to consider vacation insurance, which covers expenses related to cancellations, emergencies, or lost valuables during your trip, but it does not provide coverage for the rental car itself.
How does auto insurance work when traveling?
Your personal U.S. auto policy will follow you when traveling within the United States and often into Mexico and Canada, providing the same level of coverage listed in your policy. However, it will not work abroad, and you will need to buy a rental policy to ensure you’re covered while traveling.
What should I look for in international auto insurance policies?
When searching for car insurance for international travel, it’s essential to consider that the car you’ll be driving is not your own, and your regular car insurance may not provide coverage. Be aware of the differences in court systems and police reporting procedures in other countries. It’s advisable to secure car insurance before booking your vacation and ensure you have appropriate coverage for accidents, theft, or damage that may occur while driving abroad.
Do I need to tell my insurance company about going abroad?
It’s in your best interest to let your insurance company know you’re planning on driving abroad.
What countries require auto insurance?
Every country requires auto insurance or some form of financial responsibility from drivers.
Will my auto insurance cover me in France?
No, U.S. auto insurance policies will not cover you when visiting France.
Does U.S. auto insurance cover in Europe?
No, U.S. auto insurance policies will not cover you when visiting anywhere in Europe.
Do I need extra auto insurance for Europe?
You will need to buy rental car insurance if you plan on renting a car and driving it while abroad in Europe.
Do rental cars in Europe come with liability insurance?
Yes, liability auto insurance is included in your rental fee when renting a car in Europe.
Does Geico auto insurance cover me internationally?
If you have purchased additional overseas coverage, Geico auto insurance will cover you when driving abroad.
Can I use my U.S. auto insurance in another country?
U.S. auto policies typically only provide coverage to U.S. drivers when they visit Canada or Mexico. If you plan on driving outside of North America, you’ll need a different coverage.
Is international auto insurance expensive?
International auto insurance rates can be more expensive because companies often consider tourists high-risk drivers.
How much is travel insurance?
Travel insurance rates will vary by company and the type of vacation you are planning. Shop around and compare travel insurance quotes to get the best price.
Can you pause auto insurance while out of the country?
Contact your insurance company to see how you can suspend auto insurance if you’ll be off the road for longer than 30 days. Typically, drivers reduce coverage to liability-only while they’re abroad to save money on car insurance.
How long can I drive my car in Europe?
You can drive a car with U.S. license plates for up to six months in Europe.
Does auto insurance cover towing a trailer?
Does auto insurance cover someone else driving my car?
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Written by:
Rachel Bodine
Feature Writer
Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings.Her expert advice on insurance has been featured on sites likePhotoEnforced,All...
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Written by Rachel Bodine
Feature Writer
Reviewed by:
Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
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Reviewed by Dani Best
Licensed Insurance Producer
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