Car Insurance is 100% possible in America for anyone living as a foreigner. However, the process is alittle more complicated for anyone living as a US citizen or resident.
Whether you're moving temporarily or doing some college/university work overseas, traveling on a working visa, or simply living in the United States for more permanent reasons, Car Insurance is required in most states for anyone driving a car.
Here's a step-by-step guide to help foreigners get Car Insurance in America.
1. Determine Your Legal Status and Duration of Stay
Before applying for car insurance you should tell us what kind of stay you are going to have:
Especially short stay (less than a year) - Tourists and visitors may rent a car and use the insurance offered by the rental agency.
Long-term stay (more than one year): students, workers or expatriates who want to own a car will need a standard car insurance policy.
Your visa type and the length of time you 're staying will determine the coverage and policy options available to you.
2. Obtain a U.S. Driver’s License or Permit
While some insurers will accept a valid foreign driver's license, a lot require that you have a U. S. driver's license (or an IDP) in addition to the foreign license. Some states will give you permission to drive with a foreign license for a set amount of time, but it really helps to get a U. S. license so you'll have a greater chance at getting a better insurance deal.
3. Gather Necessary Documentation
To apply for car insurance, you'll typically need:
- ü A valid foreign or U.S. driver’s license
- ü Proof of legal presence (visa, passport)
- ü Proof of residence (lease agreement, utility bill)
- ü Vehicle registration and title
- ü Driving history (if possible translated and certified from your country of origin )
Note that not having a U. S. driving record might cost you more (sometimes insurers will take a factor of international driving experience into account).
4. Compare Insurance Providers
Some insurance companies in the US are very specialized in offering policies to foreigners/non resident drivers.
Large national companies like GEICO, Progressive, State Farm, and Allstate might offer plans depending on your state of residence and status, but I would also look at companies with experience in providing services to expats and/or international students.
If you don’t have a Social Security Number (SSN), some insurers will probably still accept an Individual Taxpayer Identification Number (ITIN) or not even ask for a SSN at all.
5. Use Different Formation Plans
Except for a
minimal liability insurance that is required in most states, it is highly
recommended that you take up higher coverage:
ü Liability coverage: This pays for the injuries
and damages caused to other persons in accident situations which were your
fault.
ü Collision coverage: This coverage pays for the
damages on your car in case of an accident.
ü Comprehensive coverage: Buy this insurance to
pay for the damage that is non-collision related such as theft, fire, and
natural disasters.
ü Uninsured/underinsured motorist coverage: You
should buy it in order to protect yourself if the other driver doesn’t have
enough funds in his or her insurance plan.
Foreign drivers,
especially those who do not know anything about the U.S. legal and medical
systems, can opt for higher coverage to avoid high out-of-pocket costs in the
event of an accident.
6. Anticipate Higher Premiums at the Beginning
Given that most
foreign drivers don’t have a U.S. driving record or credit history, the
Insurance companies would see them as higher risks, and thus charge them higher
premiums, often the case for the first year. However, with time, if you
maintain a good driving record, the rates will fall.
7. Shop for Bundles or Temporary Insurance
Some insurers offer products, like temporary insurances, for short trips, or insurance policies in bundles, in case you also procure a home or an apartment policy from the same company.
Some of these packages come with smaller prices or are
more convenient.
In some cases, the foreign insurer may have a partnership with the U.S. insurance company.
If you bring the insurance from where you are from, you may want to talk with your insurer to know if they are working with any U.S. insurer.
Not all foreign
insurances would have similar applications in the U.S.
8. Speak to a Broker or Specialist
Another option could be to call a broker who will be able to offer you the products of a number of the insurance providers and can help you choose the one that is most flexible.
Some though are brokers who particularly cater to the necessities of
students, business travelers, or immigrants, have more experience working with
them and can act as a good source of information.
Summary
Even more, as a foreigner, American car insurance can be arranged if you come prepared and are willing to pay a little extra.
If you know the ropes, gather
the necessary documentation, and know what you need to look for in a provider,
you can drive around with peace of mind, as a law-abiding motorist, and who
will be financially shielded in case of an accident.