International Car Insurance: Rules for Driving Outside the U.S.

What Is International Car Insurance?

International car insurance is any car insurance policy you get in another country. Standard coverages depend on the minimum requirements in the country you're visiting. Typically, drivers need a minimum of third-party liability car insurance, which pays for damage you may cause to other cars and their passengers.

Depending on your destination country's laws and the insurance provider, you may be able to add protections. For instance, you may be able to buy comprehensive coverage, roadside assistance, personal injury benefits and more.

U.S.-based umbrella insurance may provide you with extra coverage too. This type of policy may follow you anywhere in the world, but only above the required underlying insurance. So you'll still need to buy personal liability insurance when you're driving in another country for your umbrella policy to cover you.

Does My Car Insurance Cover Me in Canada?

U.S. car insurance usually protects you automatically while driving in Canada. This means you'll have coverage whether you're driving your own car north of the border or renting a car when you get there. Before heading out, check with your insurer to confirm that you have coverage. You also may be able to increase your policy limits or add coverages before your trip.

And remember to bring the following documents with you. You'll need them to legally drive in Canada.

• A valid government-approved travel document, such as a passport
• A valid U.S. driver's license
• Your vehicle registration
• A copy of your auto insurance card or a Canada Non-Resident Inter-Province Motor Vehicle Liability Insurance Card, which you can request from your insurance company

Does My Car Insurance Cover Me in Mexico?

Most U.S. car insurance policies won't provide coverage when you're driving in Mexico. But you'll need to contact your insurance company to confirm.

If your policy doesn't extend south of the border, you'll need to buy a separate Mexico auto insurance policy to stay protected and follow the law.

At minimum, drivers in Mexico must carry:

• Bodily injury and death liability coverage worth a minimum of 100,000 Mexican pesos (roughly $5,000 U.S.)
• Property damage liability coverage of at least 50,000 Mexican pesos (about $2,450 U.S.)

The policy must be purchased from a Mexican-licensed insurer. Many U.S. insurers, such as Geico and Progressive, work with licensed providers in Mexico. Ask your insurance carrier if it can sell you a policy. After buying coverage, carry your proof of insurance whenever driving in Mexico, along with your driver's license.

Does My Car Insurance Cover Me Overseas?

With the exception of Canada, your U.S. car insurance policy likely won't cover you abroad. So if you're planning to drive overseas, you'll need to buy a separate car insurance policy that meets requirements in the country you're visiting.

It's a good idea to do some research in advance. Auto insurance laws vary by country, and you may need to buy certain types of coverage or provide proof of insurance before you're allowed to drive.

Here are some ways you can find auto insurance requirements and traffic laws for a specific country:

• Head to the U.S. Department of State's website and type in the country you're visiting. Then scroll down to the "travel and transportation" section for information.
• Reach out to the appropriate foreign embassy or consulate. A representative may be able to give you the information or point you in the right direction.
• Contact a government tourism office and ask for information.
• If you're renting a car, contact the car rental company and ask about insurance requirements.

Frequently Asked Questions

The Bottom Line

Research your insurance needs before leaving for a trip abroad. Your car insurance policy covers you while driving in Canada, but it doesn't offer protection in Mexico or other countries. You'll need to find the minimum insurance requirements in your destination country and then consider whether you want additional coverage.