Does My Car Insurance Cover Me When I Travel Internationally?
When you travel by car internationally, do not count on being automatically covered with car insurance. In some circumstances, your car insurance may provide limited coverage. In other travel situations, your car insurance does not cover you at all. Having automobile coverage during international travel may sound complicated. In truth, it is relatively straightforward.
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States Rules May Vary
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In the U.S., insurance is regulated by states, each with its own rules. Insurance companies within the U.S. offer insurance products that differ from each other. When you purchase an auto insurance policy from one company, you have many choices. Some of these may include low or high limits of liability, choices of deductible amounts for various amounts of coverage, and methods of valuation for your vehicle. In short, the only way to know where and to what to extent you are covered is to know the terms, limits and exclusions of your insurance policy. It is probably safe to say that any policy sold in the U.S. provides no coverage beyond the U.S., its territories and the neighboring country of Canada.
North of the U.S.
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If you intend to drive your U.S. insured car in Canada, you should check with your insurer and verify that your coverage extends into Canada. In all likelihood, you will not need to purchase additional insurance on your car, but you do not know without verifying. Like the U.S., Canada requires proof of insurance. For the most part, auto insurance policies issued by U.S. insurance providers are valid in Canada.
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South of the U.S.
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When you drive your U.S. insured car in Mexico, you enter an entirely different legal system. If you are involved in a car accident in Mexico, Mexico does not recognize or accept U.S. insurance. You must carry Mexican car insurance during your stay. If you drive in any or all of the countries of Central America, the same applies. You can purchase Mexican liability and property damage insurance plans from a number of providers. Plans are available for day-by-day travel as well as on an annual basis.
Additionally, for people who live near the U.S.-Mexico international border and who travel across the border frequently, some U.S. insurers offer a limited endorsement for Mexico travel. Frequently, insurance covers the damage to the vehicle provided it does not travel more than a specified number of miles, such as 25 miles, south of the border. This coverage is not a substitute for Mexican liability insurance and does not constitute compliance with Mexican law.
Overseas
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If you ship your personal vehicle overseas, you would likely insure it overseas. If you rent a vehicle overseas, consider two options for insurance. The rental car company usually offers insurance as part of its rental cost package, and accepting that insurance is one option. Another option is to check with your credit card company prior to your overseas travel. Provided the credit card company offers car rental insurance with the coverage required by the destination country, you may be able to decline the rental company coverage and utilize your credit card coverage. Remember to pay for the rental car with the credit card that provides adequate insurance.
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References
- Photo Credit Toluca Mexico, Cathedra in Main square -Toluca Mexico image by Marcus from Fotolia.com
