Car insurance for foreign drivers in USA

Do I need to buy car insurance if I visit the U.S.?

If you are driving almost anywhere in the U.S. (with the exception of New Hampshire), you are required to have car insurance. This is true if you are a long-term visitor on a visa, but it's also true if you're only visiting for a few days. Most rental car companies offer car insurance for foreign drivers when you pick up your vehicle, making it easy to get on the road if you are just here for a brief visit.

However, if you are bringing your own car with you to the States, you still need to purchase car insurance from a U.S. provider, with few exceptions. Talking to an independent licensed insurance agent can be one good way to find the best policy and provider for your needs. They can suggest the right amount of coverage and help you search for the policy that best fits your needs. Most U.S.-based car insurance providers also offer the ability to purchase a car insurance policy online.

U.S. car insurance for short-term visitors

If you are only in the U.S. for a short time, planning your car insurance needs before you come can help streamline your arrival and get you on the road quickly. If you are renting a car, you can meet your car insurance requirements by purchasing rental car insurance from the company supplying you with a vehicle. You may be able to do this when reserving your vehicle, and it’s typically easier than purchasing a separate, standalone policy for your visit.

In all likelihood, a rental car company will have a range of coverage options to choose from. The most basic type of coverage is liability insurance, which is required in most states and generally covers vehicle damage and injuries to the driver and passengers in the other car if you cause an accident. Other types of coverage available may include collision insurance, personal effects coverage and personal accident coverage.

If you are on a short visit to the U.S. from Canada, however, you may not need to worry about it at all. In most cases, a Canadian car insurance policy is valid in the U.S., and may even extend to cover a rental vehicle. When planning your trip, however, it’s a good idea to talk with your insurance agent to ensure that this is indeed the case for your policy, and to check that the coverage is adequate for your needs.

U.S. car insurance for long-term visitors

Your car insurance needs may be slightly different if you are a long-term visitor—for example, if you are here on a student visa or are working in the U.S. for an extended period of time. If you purchase or lease a car to drive while you are in the States, you will need to find affordable car insurance to protect your finances and comply with the law while you are here. As mentioned above, if you lease or finance a car in the U.S., you’ll be required to purchase a full coverage policy.

Keep in mind that car insurance in the United States is not a case of one-size-fits-all. Every policy is tailored to the person who purchases it, based on specific factors unique to them. You also have some choice in regards to the kinds of coverage you want, whether you opt for a low-cost minimum coverage policy that just meets state requirements or instead choose a full coverage policy that provides more robust financial protection (which is usually required if you lease or finance a vehicle in the U.S.). Comparing quotes, whether online or with an agent, is the best way to find the right car insurance for your situation.

International drivers permits

If you plan on temporarily driving in the U.S. with a driver’s license from your home country, be aware of the local rules about how long you may legally operate a vehicle with a foreign license. You may only be able to drive with a driver’s license from another country for up to three months.

If you intend on staying stateside longer than a handful of weeks, some states advise you to get an international driver’s permit (IDP). Even if an IDP is not mandatory, having one may be a good idea. The document doesn’t replace your foreign-held driver’s license — it serves as an accompanying translation of it. If you get pulled over, the officer can look up the translation of your driver’s license from your home country in the IDP booklet in the language of their choice and see that you are a valid driver.

To get an international driver’s permit, contact your home country’s traffic or motor vehicles agency to apply for one before you plan to leave. It may take around two weeks or longer to receive your IDP, so be sure to apply well in advance. An IDP is typically valid for one year from when you get it and includes your information displayed on the driver’s license. You will likely need to provide a passport-style photo that the agency can attach to the IDP.

Can I use an international driver’s permit without a license?

An international driving permit (IDP) is essentially a translation document that complements, but does not replace, the driver's license from your home country. It's important to understand that an IDP on its own does not grant you the legal right to drive a vehicle in the United States or elsewhere. Instead, it serves to provide a clear, internationally recognized translation of your existing driver's license, which can be useful if your license is not in English.

To drive legally in the U.S., you must carry your foreign driver’s license along with the IDP. The IDP is recognized in many countries and is useful for both identification purposes and to aid local authorities in interpreting your original driver’s license. However, it is not a standalone document for legal driving. If you are found driving without a valid driver’s license from another country, but with only an IDP, it could be considered driving without a license, which is a serious offense.

U.S. car insurance requirements

Car insurance for international drivers in the U.S. also depends on where you plan on staying. Each state in the U.S. has its own rules and insurance requirements. Most states only ask for liability insurance to legally drive, which helps pay for damage and injuries others sustain in an accident you cause. A small number of states also require you to have underinsured/uninsured motorist insurance, which kicks in to help pay your expenses if the party at fault does not have insurance.

In no-fault states, drivers usually carry coverage for personal injury protection (PIP) and/or medical payments to cover their medical expenses regardless of fault in addition to liability coverage. PIP pays for medical and burial costs, lost wages, childcare expenses and other household services, regardless of who was at fault in the accident. Medical payments coverage only covers medical payments.

Car insurance rates by state will vary based on local factors such as local cost of living, population density and crash statistics. Your car insurance rates will also vary based on whether you have full or minimum car insurance coverage. While minimum coverage car insurance is typically cheaper, it can leave you financially vulnerable in the event of an accident. If your car insurance doesn’t cover the full amount of damages, you may end up having to pay out-of-pocket. Minimum coverage also does not include coverage for damage to your own vehicle. Full coverage car insurance, on the other hand, includes coverage for your vehicle, may include other optional types of coverage and is more likely to protect your finances.

Frequently asked questions