Getting off to the right start: Auto insurance for foreign drivers

Car insurance for foreign drivers

Navigating the auto insurance world can be difficult, especially for foreign drivers in the United States. Whether you’re just visiting or planning a move to the U.S., there are specific requirements for driving that may differ from other countries. That is why understanding when auto insurance is needed and what coverages to include may be important before you begin your travels.

When is car insurance for immigrants needed?

In the U.S., everybody needs to have two things before they can drive: a driver's license and, in most states, vehicle insurance. The rules for both are different depending on the state that you live in. Some states may require a Social Security Number to get a license. Check with the licensing agency in your state to confirm what is required.

If your time in the U.S. is short, many rental car companies offer insurance when you rent a vehicle. This temporary coverage is often adequate for short trips. You can choose from various coverage options, including liability, collision and comprehensive insurance, depending on your needs and the level of risk you're comfortable with. To help determine "How much liability insurance do I need?", research the state’s minimum requirements and consider additional coverage for more security.

For those relocating to the U.S., obtaining car insurance with a foreign license is a top priority. Many insurance providers offer car insurance for immigrants and non-citizens, but you may need to provide additional documentation or meet specific criteria.

Can I obtain car insurance with an international driver’s license?

Yes, it may be possible for the short term. However, there may be cases where some insurance companies don’t offer insurance for foreign drivers until you have a U.S. driver’s license. Depending on the country you’re from and the state you’ll be driving in while in the U.S., you may be able to use your home country’s driver’s license. In addition, you can obtain an International Driving Permit (IDP), sometimes referred to as an international driver’s license, which allows you to drive legally in the U.S. and many other countries. If you are driving on your country’s license, it may only be allowed for three months, whereas an IDP could allow up to one year. Check with your local DMV and insurance company to see what rules may apply to your specific situation.

Insurance selection process for foreign drivers

When it comes to car insurance, various factors can influence cost such as the coverage that you choose. Also, if you don't have a driving history established in the U.S., you may be considered a "new driver.” Finding the right auto insurance can seem overwhelming, but these key steps could help simplify your decision-making process:

1. Gather important documents such as your license from your home country, international driver’s permit and your driving history.
2. Compare insurance quotes from companies that offer auto insurance for foreign drivers.
3. Confirm the minimum requirements needed in your state.
4. Select a policy that provides you with the coverage for your needs.

Who does car insurance help protect?

Have you ever wondered why it's mandatory to have car insurance to drive in the U.S.? While it may seem a bit of an exaggeration, every time a person drives, they are exposing themselves to the risk of having an accident. If this were to happen to you and you didn't have insurance, you might have to pay out-of-pocket not only for repairs but also for medical expenses for both you and the other person. In other words, your hard-earned savings could all go towards paying for a car accident. Liability car insurance helps protect you and your family if you are at fault for the accident and up to the amount of policy limits you choose.

How much car insurance for non-U.S. citizens is needed?

To help determine what type of car insurance is required, contact the DMV in your state. Most states require at least liability coverage, which generally pays for property damage and medical costs for injuries to others if you are considered at fault in an accident.

Some states have minimum coverage requirements to help cover your own expenses. Coverage for your medical expenses is called Personal Injury Protection (PIP) or Medical Payments Coverage (MPC). Which coverage is available to you depends on the state where you are seeking coverage. In certain states it's mandatory in addition to liability coverage. To help pay for damage to your vehicle resulting from a car accident, you would need collision coverage which is not mandatory in any state. You may want to consider this coverage if you get in a car crash and don't have the money to repair your car.

If you'd like more information on the topic, State Farm offers various types of coverage and you can speak with an agent to help review your options.

Additional coverage options

Aside from liability coverage and PIP coverage, some states may require additional coverages such as uninsured motorist coverage and underinsured motorist coverage. Both coverage types may help cover expenses if you’re in an accident with someone who hits you and doesn't have insurance or whose coverage doesn't cover the resulting damages or medical costs.

What happens if I drive without insurance and don't get into an accident?

Driving without insurance can result in penalties that may include fines or the risk of having your license and registration suspended or revoked.

In short, when it comes to insurance in the U.S., there's a lot to learn. You don't need to know it all, though. A State Farm agent can help explain often in the language that you speak. There are plenty of agents that are bilingual or that have bilingual staff, which can be found in the advanced search options on the Find a State Farm agent page.

What if I’m traveling from Canada?

Before traveling to the U.S. check with your auto insurance carrier to verify coverage for your trip. If you are moving to the U.S. you’ll need to register your car at the DMV of your new home state and obtain insurance.

You can get an auto insurance quote now, or give us a few details and a State Farm agent will reach out to you.