Does Your Auto Insurance Cover Other Countries?
If you are soon going to be driving your car in another country, one of the first things you’ll probably ask yourself is: “Will my car insurance policy cover my car while I’m overseas?” There are many factors involved, so this isn’t exactly a simple question to answer. However, following is some basic information that can help to give you a better idea of how your insurance policy will work (or won’t work) in countries outside of the United States.
Some countries only recognize car insurance policies that are held by local insurers. Mexico is one of these countries. So if you planned on driving to Mexico from your home state, then you’d want to be sure to invest in Mexican car insurance before you make the journey, preferably.
On the other hand, if you’re headed north to Canada, you’ll find that your American insurance policy will cover you as long as your stay is temporary.
If you find that your car insurance isn’t valid overseas, then there is some good news: Most of the major insurers give you the chance to buy traveling or overseas insurance when you need it. Most commonly, these companies work together with insurers located abroad. This foreign insurer would become your point of contact while you’re under their policy in a different country. The types of overseas insurance vary, and most insurers offer several options so that you can get the insurance that your specific situation calls for.
If your plan is to actually move and live abroad, then a temporary overseas insurance policy simply won’t do. In this situation, you’ll need to permanently change your policy to one that meets all of your new country’s regulations.
As you can see, overseas car insurance can be a bit complicated. If you’re going to be driving in a foreign country, be sure to talk to your insurance agent before making the trip to ensure that you’ll be legally covered while overseas.
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