Out-Of-State Adventures: Am I Covered By My Auto Insurance?

Does my auto insurance cover me out of state?

If you're travelling to another state, you might be wondering if your auto insurance will still cover you. The good news is that, in most cases, your car insurance policy will cover you when driving to other states in the US. This is true even if you're driving in a state with different insurance rules than your own. So, whether you're going on vacation, taking a road trip, or commuting to another state for work, you can rest assured that you're covered.

However, there are a few exceptions to this. If you're planning to move to another state permanently, you'll need to update your insurance policy with your new address. Additionally, while your US policy will typically cover you in Canada, it usually won't cover you in Mexico or other countries, so you may need to purchase a separate, temporary policy for driving in those countries.

Does auto insurance cover international travel?

If you're planning a trip that involves driving across international borders, it's important to understand whether your auto insurance policy will cover you. Here's what you need to know about auto insurance coverage for international travel:

In most cases, your auto insurance policy will not provide coverage for international travel. The extent of your coverage will depend on your specific insurance provider and the country you are visiting. Some US auto insurance policies may provide coverage in Canada and Mexico, but this is not always the case. It's important to carefully review your policy or contact your insurance provider to confirm the details of your coverage.

If you're planning to drive in a country other than the US, it's highly recommended to purchase additional insurance. You can typically buy rental car insurance or a temporary insurance policy specifically for driving abroad. This will ensure that you're covered in case of any accidents, damage, or theft while travelling internationally.

Understanding Your Auto Insurance Policy:

Before planning an international trip with a vehicle, it's crucial to review your auto insurance policy thoroughly. Different insurance providers have varying terms and conditions regarding coverage outside of your home country. Some policies may offer limited coverage for specific countries, while others may not provide any coverage at all. Understanding the specifics of your policy will help you make informed decisions about purchasing additional insurance.

Purchasing Additional Insurance for International Travel:

If your auto insurance policy does not cover your destination country, or if you want more comprehensive coverage, purchasing additional insurance is essential. Here are a few options to consider:

• Rental Car Insurance: If you plan to rent a car during your trip, purchasing rental car insurance is a good idea. This type of insurance covers the rental vehicle for the duration of your trip and provides peace of mind in case of any incidents.
• International Auto Insurance: If you're taking your own vehicle to another country, consider purchasing international auto insurance. This type of insurance is designed specifically for individuals bringing their cars to foreign countries and ensures compliance with local regulations.
• Temporary Insurance Policies: Depending on your destination, you may be able to purchase short-term or temporary insurance policies that provide coverage for the duration of your stay. This can be especially useful if you're only planning a brief trip across the border.

Tips for Purchasing International Auto Insurance:

When purchasing international auto insurance, keep the following tips in mind:

• Compare Prices and Coverage: Shop around and compare prices and coverage options from different insurance providers. This will help you find the best value for your needs.
• Understand Local Regulations: Ensure that your insurance complies with the laws and requirements of the country you're visiting. Requirements for insurance coverage can vary from country to country.
• Review Your Current Policy: Before purchasing additional insurance, carefully review your current policy to identify any gaps in coverage. This will help you choose the right supplemental insurance to fill those gaps.
• Plan Ahead: Don't wait until the last minute to arrange your international auto insurance. Allow yourself enough time to research, compare, and purchase the appropriate coverage for your trip.

In conclusion, while your auto insurance policy may provide limited coverage for certain countries, it's generally not designed to cover international travel extensively. To ensure you're adequately protected, purchasing additional insurance specifically for your international travels is highly recommended. This will give you peace of mind and allow you to focus on enjoying your trip.

Does auto insurance cover temporary relocation?

If you're relocating to another state temporarily, you may not need to change your auto insurance policy. Temporary relocations lasting a week or two may not require a new policy. Your insurance provider will usually adjust your plan automatically based on the state where you are driving if you are out of the area during an accident.

For short-term relocations lasting a few weeks to a month, you may need to inform your insurance provider and ask about your options before you leave. Some insurers may offer a plan specifically designed for temporary relocations.

If you're moving to another state for several months to a year, you will likely need to contact your insurance provider and change your policy. You will also need to follow the state guidelines and standards for licensing and registration. It's best to contact the department of motor vehicles to find out the laws for any relocation exceeding one to two months and to determine if you need to register your vehicle.

Your car insurance policy will generally cover you for temporary trips out of state. However, for long-term stays, you may need to update your policy. In general, you should buy car insurance in the state where you spend most of your time. You can't live in one state and buy car insurance in another.

There are, however, special considerations for part-time residents, such as college students and those with multiple residences, who may spend a significant amount of time in different states. In these cases, you must register and insure your car in the state where you are a legal resident. The requirements for vehicle registration depend on the specific state. For example, Arizona requires registration if you live there more than seven months per year, while in Arkansas, it's only six months.

Additionally, some states, like Washington, D.C., require you to register your car with the DMV even if you are not a legal resident. Therefore, it's important to check with the DMV in your temporary relocation state to understand their specific requirements.

Does auto insurance cover permanent relocation?

If you're permanently relocating to another state, you'll need to update your insurance policy with your new address. While your car insurance policy will cover you for temporary trips out of state, for long-term stays, you may need to update your policy. In general, you should buy car insurance in the state where you spend most of your time.

If you're permanently relocating, you'll need to transfer your car insurance and registration to your new state. This is because car insurance is based on your permanent residence, and using an address for insurance that's different from your primary residence is a form of insurance fraud.

There are some exceptions for people who split their time between multiple homes or states. For example, if you live in Connecticut for eight months of the year and Florida for the remaining four months, you would buy insurance in Connecticut, and this policy would cover you in both states.

If you have multiple vehicles kept in different states, you'll likely need separate insurance policies for each vehicle based in the states where they're stored.

If you're a member of the military, most states allow you to continue coverage from your home state while you're stationed elsewhere. However, this may not be the case if you have a permanent change of station (PCS) and spend 20 weeks or more at a new location. In this case, you'll likely need to purchase new coverage.

If you're permanently relocating, it's a good idea to contact your insurance company to ask about your situation and check the requirements in your new state.

Does auto insurance cover driving in Canada?

Driving in Canada? Here's what you need to know about your auto insurance coverage.

In general, your US auto insurance will cover you when driving in Canada. This is due to reciprocal laws between the two countries, which mean that a US insurance policy will cover you in Canada, and vice versa. Most major insurance companies will cover you if you need to make a claim during your trip. However, it's important to check with your insurance company before your trip to ensure you have the proper documents and coverage.

If you are driving your own vehicle or a rental car in Canada, your US insurance will usually protect you with the same coverages and limits that you have at home. Comprehensive car insurance coverage and auto collision coverage, for example, will still apply to damage to your vehicle if you're in an accident while driving in Canada. However, it's worth noting that your insurance rates may increase if you are found to be at fault in an accident in Canada.

If you are pulled over by the police or are involved in an accident in Canada, you will need to show proof of insurance, along with your driver's license and passport. You can request a non-resident inter-province insurance card, also known as a Yellow Card, from your insurance company, which is the form of proof of insurance accepted by Canadian authorities. If you don't have this card, you could be fined or have your vehicle impounded. It's also recommended that you bring a copy of your US auto insurance policy or your US auto insurance ID card as a backup.

If you are renting a car in Canada, your personal auto insurance coverage usually extends to the rental car. However, it's important to ask the rental company if you can drive the vehicle across the border. If you rent the car in the US, the rental company may be able to provide you with the Yellow Card. If you rent the car in Canada, you may be able to purchase additional insurance, such as a collision damage waiver, to supplement your US policy. Your credit card may also include some coverage for a rental car, so be sure to check.

If you are planning to stay in Canada for an extended period, you will need to look into obtaining a visitor's visa or a Canadian insurance policy, as your US policy will only be valid for a certain period of time.

Does auto insurance cover driving in Mexico?

In most cases, your auto insurance will not cover you for driving in Mexico. Mexican law requires all vehicles to have car insurance, and US auto insurance policies are not recognised by Mexican authorities. If you are driving in Mexico without valid insurance, you could face serious consequences, including jail time.

Some US insurance companies may offer limited coverage for driving in Mexico, but this is usually restricted to a certain number of miles from the US border and a limited number of days. For example, The Hartford offers coverage within 25 miles of the US border for trips of 10 days or fewer. However, this limited coverage does not fulfil the Mexican legal requirement in the case of an accident. Therefore, it is essential to purchase a separate Mexican liability insurance policy from a licensed Mexican insurance company. This can be done directly through a Mexican insurance company or via a US company that works with Mexican insurers, such as Baja Bound or Geico.

Before driving to Mexico, it is important to carefully read your US auto policy and contact your agent to highlight any coverage limitations. You should also consider purchasing additional coverage types, such as physical damage coverage, medical payments, legal assistance, roadside assistance, and medical evacuation.

Frequently asked questions