How to Get Car Insurance While Traveling Abroad

Purchasing travel insurance while traveling abroad is always a good practice. However, travel insurance is usually confined to health coverage. If you plan to drive a car, you may need car insurance as well as an international driving permit. Even though it is not necessary in some countries to have car insurance, it is still recommended. And while some rental car agencies honor U.S. driver's licenses abroad, you're best prepared if you have an international driving permit (IDP).

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• International driving permit (IDP)

1. Contact your credit card companies. See if you qualify for insurance for driving abroad. Check fees and shop for rates among all the credit cards you may have.

2. Add a clause for driving in a foreign country while buying travel insurance. Check the difference in the premium and compare it with the fees of your credit card.

3. Rent a car from a major rental car agency. You will most likely be assured of better services and better coverage. Buy temporary insurance from the rental car agency, depending on the number of days that you plan to rent the car.

4. Ask your friends and colleagues that live abroad about insurance if you plan to use their car. It is likely that their insurance policy may cover anyone driving their car.

5. Contact your existing insurance company if you are unsure about your coverage in a foreign country. You may qualify for limited coverage under your own policy for certain days of the year without any additional charge.

6. You can buy an international driving permit (IDP) if you have a valid U.S. driver's license. For information on what an IDP is, where to purchase one and which countries accept them, see the resources below.

Tips & Warnings

• When buying a temporary policy, specify the exact dates you need coverage. If you extend your stay, be sure to extend your policy.
• You can save money and may not need to buy insurance at all if you are on a business trip. Ask your company to cover you for the length of the visit.
• On a vacation, it may be wisest to rent a car and get your insurance from the rental agency. In most cases, this is usually the easiest and most cost-effective process.