Car Insurance Tips for Travelers

Car insurance is required or strongly recommended by the laws of all 50 American states. While most states do not require that you show proof of vehicle insurance at routine traffic stops, all states will require that you show this proof in the event of a traffic accident. If you fail to produce evidence of car insurance, your license and registration will be suspended until you pay out-of-pocket for the damages you caused. However, While the laws of the United States can be strict about having proof of car insurance, the laws of other countries are even stricter. Therefore, travelers who are planning to leave the United States and travel by car in other countries are advised to learn about the car insurance laws of these countries in advance.

In many cases, a traveler who has U.S.-based car insurance need not purchase any additional insurance for travel out of the country. For example, Canada honors U.S.-based car insurance policies provided the driver is a tourist and also obtains a Canadian insurance card. A Canadian insurance card for travelers can be requested from most U.S.-based insurance companies for free.

Other countries, and especially those where English is not one of the native languages, often have different rules about car insurance for travelers. In Mexico, for example, travelers must purchase Mexican car insurance even if they already have American or other car insurance. Mexican car insurance is sold on both sides of the border. If you are found to not have Mexican car insurance while driving in Mexico, you will be jailed until the injured party or parties are satisfied that your financial responsibility to them has been addressed. Furthermore, if the damage and/or injuries are serious enough, you may even face criminal liability for your actions.

Keep in mind that even if you purchase Mexican car insurance, Mexican law requires that you be taken into police custody until it is determined just who is liable for the accident and if the liable party or parties can actually pay for the damages.

Many U.S.-based insurance companies work on a collaborative scale with agencies that are based abroad. Therefore, it is a good idea to first contact your current insurance company and ask if it can recommend an agency that is based in the country that you plan to visit.

If another country's insurance rates are found to be prohibitively high or if the process of obtaining car insurance involves jumping through too many hoops, you may be better off renting a car at your destination country or even hiring a driver service. Most car rental agencies offer car rental packages that include car insurance and even roadside assistance. Driver services take the hassle out of finding your way around unknown geography and indecipherable street signs.