Foreign Licenses And Auto Insurance

If you're a foreigner in the US, you can get car insurance with a foreign driver's license, but it may be more difficult than getting insurance with an American license. The rules vary depending on the state you're in and the company you choose. Some insurance companies will sell you coverage with just your foreign driver's license, while others may also require you to get an international driving permit (IDP). If you're only in the US temporarily, you may want to consider short-term auto insurance or rental car insurance.

Foreign drivers in the US must follow the same auto insurance laws as US citizens

For short-term visitors, the most practical solution is to obtain rental car insurance directly from the rental company. This is because short-term visitors are generally not eligible to purchase policies from standalone car insurance providers in the US. Rental companies usually offer a range of insurance options, including minimum liability coverage, collision coverage, loss-and-damage waivers, personal effects coverage, and personal accident coverage.

For those staying in the US for longer, it is possible to get car insurance with a foreign driver's license. However, this varies by state and insurance company. Some insurance companies do not insure foreign drivers, but some major companies, including State Farm, do insure those who meet state requirements. Foreign drivers may need to apply for an international driving permit (IDP), which acts as a translation of a foreign driver's license and is valid for one year.

When it comes to insurance rates, foreign drivers are usually treated as new drivers, even if they have been longtime license holders in their home country. This is because a driver's history from another country does not apply in the US. As a result, foreign drivers can expect to pay higher rates initially.

Non-US citizens can buy car insurance if they have a valid driver's license from their home country

If you're a non-US citizen, you can still buy car insurance in the US, but you'll need a valid driver's license from your home country. Depending on your home country, your original license may be accepted, or you can apply for an international driving permit (IDP). An IDP serves as proof that you are licensed to drive in your home country. It's important to note that an IDP is not a valid driver's license in the US and is instead a translation of your foreign driver's license, which should always accompany it.

The requirements for driving in the US vary from state to state. In most states, you'll be able to drive with your country's driver's license for three months, and with an IDP for a year. After that, you'll need to obtain a US driver's license. Some states may require you to get a driver's license from the state you reside in within 90 days of your arrival in the US.

If you're only visiting the US for a short time, it's best to get temporary car insurance coverage from a car rental company, which will cover any accidents during your stay. However, if you're planning to stay in the US for an extended period and want to buy or lease a car, you'll need to get an insurance policy from a US-based company. Keep in mind that some insurance companies will not issue policies to drivers without a valid US license or social security number.

When it comes to insurance rates, you may face higher premiums due to your lack of a US driving history. Insurance companies may categorise you as an "inexperienced driver" and assess you as high-risk until you establish a track record of safe driving in the US.

Some insurance companies will sell you coverage with just your foreign driver's license

If you're looking to get auto insurance in the US with a foreign driver's license, it's important to note that requirements vary across states and insurance companies. While some insurance companies will only sell policies to US drivers, others will gladly sell you coverage with just your foreign driver's license. However, some companies may require you to obtain an International Driving Permit (IDP) or a local driver's license.

When looking for auto insurance, it's important to be cautious of scam companies and agents that prey on foreigners unfamiliar with the US insurance system. To avoid this, look for insurers with strong reputations, excellent reviews, and high ratings. You can also reach out to a broker or ask friends and family about their insurance providers.

In terms of coverage, most states require you to have at least liability auto insurance, which covers injuries or property damage to others if you are responsible for a collision. Depending on the state, you may also need additional coverage such as personal injury protection or uninsured/underinsured motorist coverage.

It's worth noting that insurance companies consider foreign drivers as "new drivers" due to the lack of a US driving history. As a result, you can expect to pay higher rates initially, even if you have been a longtime license holder in your home country.

Some US states may require you to get a driver's license from the state you reside in

In the United States, automotive insurance is required in most states, but different states enforce this requirement in different ways. While some states require drivers to carry liability insurance, others have more flexible "proof of financial responsibility" requirements.

Some states may require you to obtain a driver's license from the state in which you reside, such as foreign students attending college. This requirement typically applies within 90 days of your arrival in the United States. Obtaining a local driver's license can help you meet the prerequisites for purchasing car insurance and avoid being considered an "inexperienced driver," which often results in higher insurance premiums.

Additionally, each state has its own minimum insurance requirements. For example, California requires a minimum coverage of $15,000 for injury/death to one person, $30,000 for injury/death to more than one person, and $5,000 for property damage. On the other hand, Oklahoma mandates a minimum liability limit of $25,000 per person, $50,000 total for all people, and $25,000 for property damage.

Therefore, it is essential to familiarize yourself with the specific regulations and requirements of the state in which you reside to ensure compliance and obtain the necessary insurance coverage.

If you're a short-term visitor, your best bet for car insurance is to purchase it through your car rental company

If you're a short-term visitor to the US, you'll be glad to know that you can get the necessary car insurance coverage from the rental company. This is a convenient option as short-term visitors are generally not eligible to purchase policies directly from standalone car insurance providers.

Rental companies usually offer a range of insurance options, including minimum liability coverage, collision coverage, loss-and-damage waivers, personal effects coverage, and personal accident coverage. You can choose the options that best suit your needs during your stay in the US.

For instance, if you're only planning to rent a car for a short period, the minimum liability coverage offered by the rental company may be sufficient. However, if you're concerned about adequate protection, you can consider adding supplemental liability protection or a collision damage waiver. These options provide additional coverage in case of accidents or damage to the rental vehicle.

Another option is to purchase a standalone rental car insurance policy, which can often be obtained on a day-by-day basis. This may be particularly useful if you don't require a rental car for your entire trip but still want comprehensive coverage when you're behind the wheel.

Keep in mind that car insurance requirements vary from state to state in the US. Most states only require liability insurance, which covers damage and injuries to others in an accident. However, some states also mandate underinsured or uninsured motorist insurance, which protects you if the at-fault party doesn't have sufficient insurance.

In summary, short-term visitors to the US can conveniently obtain car insurance through rental companies, customising their coverage based on their specific needs and the duration of their stay.

Frequently asked questions