Following is some great information I received from Reviews.com
Auto insurance for foreign and domestic travel
For many people, auto insurance is a monthly expense that probably doesn’t get a second thought when the fee comes out of one’s account. But for travelers, the world of auto insurance can be very complex. Safe driving is key to a great trip, whether you’re traveling within your home country or internationally.
When traveling inside the U.S.
Auto insurance is absolutely essential for a domestic road trip. If you’re due for a policy update, be sure you’re covered in these basic areas, as outlined in Reviews.com’s guide to auto insurance.
- Bodily injury liability – covers injury to people caused by the policyholder
- Collision – covers damage caused by a crash with another car or object
- Comprehensive – covers damage or theft caused by something other than a crash with another car/object
- Personal injury protection (PIP)/medical payment – covers injury to the driver or passengers of the policyholder’s car
- Property damage liability – covers damage to other people’s property caused by the policyholder
- Uninsured/underinsured motorist (UM/UIM) – covers costs of an accident involving uninsured drivers, underinsured drivers, or hit and run drivers.
Remember that price shouldn’t be the only factor you consider when choosing your insurer. Cheaper isn’t always better, and since the average driver gets in an accident once every 18 years (maybe 3 times in their life), being fully covered will save you money in the long run. For more information on finding a great policy, you can check out their full guide here: https://www.reviews.com/auto-insurance/
Driving through to Canada and Mexico
When crossing the border between the U.S. and Canada, an existing U.S. auto policy typically will cover your international travel, according to DMV.org. Always confirm your coverage before you leave for your trip to ensure you fulfill minimum coverage requirements.
When crossing the border between the U.S. and Mexico, an existing U.S. auto policy typically does not cover you. Most drivers will need to purchase temporary Mexican auto insurance to ensure they’re covered in the event of a collision and to avoid breaking insurance laws. You can read more about temporary auto insurance in Mexico here.
Renting Internationally
Overall, it’s important to make sure that you have auto insurance that fully covers you for whatever may happen in your travels. In the event of an accident, minimum coverage may mean that you’re still paying out-of-pocket costs for medical coverage or property damage. Typical U.S. auto insurers do not cover overseas travel. The only way to know is to ask your current insurer, who may be able to help coordinate coverage for you if you aren’t currently covered.
Check with your credit card company for additional coverage, as this is a benefit for many who book their car rental through their card. This is a great perk that comes with your card, but dive in deep before you rely solely on this coverage. Sometimes these policies only cover the car you’re in, but not other drivers hurt in the accident. Be sure to contact your credit provider for a full explanation of coverage. Nerdwallet has a great list of questions to ask to make this a successful and informative conversation.
Rental car companies typically offer insurance as part of your rental package. If you feel uncomfortable with the coverage (or lack thereof) from your current auto policy or insurance from your credit card provider, this may be a great way to go. The most important part here is to do your homework before you travel, as this is a big upsell for rental companies and you may truly not need it.
What are your thoughts? Have you had experiences with insurance?
