Why Do You Need Car Insurance When Travelling Abroad?
When travelling abroad by car, you need foreign car insurance, which offers coverage for the period of time the vehicle will be in the foreign country. However, Canada is the exception to the rule, as American car insurance offers insurance protection in the event of an accident. However, if you are renting a vehicle while traveling, there is no need to worry about insurance, as it will be sold to you with the car rental agreement.
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Laws
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Legal systems in foreign countries differ from that of the U.S. In many places laws that relate to accidents have more severe consequences than those in the United States. For instance, a foreign driver responsible for an accident may be held liable for human loss, hospital bills and any property damage caused by the accident. If the driver does not hold valid automobile insurance purchased from the country he is in, he will be held in police custody until all damages are paid. Valid U.S. or Canadian car insurance is not valid in other countries because it is not backed by an insurance company registered in that foreign country.
Proof of Insurance
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Some countries like Canada will ask for proof of insurance when crossing the border, while other countries may never asked for your proof of insurance and if you don't have an accident you won't have any issue. However, serious problems arise when you don't have valid car insurance and are in some type of accident. Even when you are not at fault, it is not uncommon for you to be blamed for the accident, as you are the foreigner.
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Verification
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Before leaving the United States, be sure to call your car auto insurance company to find out what type of coverage you might have if you leave the country. Some insurance companies offer coverage in Canada only, while others may offer coverage in Mexico up to a few hundred miles, but that coverage will be limited. Other than in these two countries, American auto insurance will not be valid while in the foreign country.
Insurance Purchase
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A foreign auto insurance policy can be purchased once you are in the foreign country for the time period you are traveling through that country, You will see car insurance agencies close to the border crossing and sporadically placed along the first 10 to 20 miles of entering the country. If you plan on traveling through more than one country, you will need to purchase an insurance policy in each country for the time frame you will be there. To purchase foreign car travel insurance you only need your American or Canadian license, your vehicle title and the vehicle permit you receive when entering the country.
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References
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