If you are planning to take your car to another country with you here are seven areas to focus on to ensure your car is properly insured.
1. Length of Visit
If you are driving to a country for a visit prior to relocating there, your car insurance may cover you for the trip. However, once you move to a foreign country you will most likely need an additional insurance policy. It depends primarily on the length of time you will be spending abroad.
A simple extension to your insurance policy may be sufficient to cover you for a short trip, but if you plan to be away for more than thirty days at a time, or your total time in another country exceeds an annual limit of ninety days, then this add-on is no longer an option. You will need an additional international car insurance policy.
2. Destination and Nationality
If you live in the European Union (EU), and are driving solely through other EU member states, then European insurance cover may match your needs. Some companies offer a European wide insurance, which also includes non-EU states.
Other insurance companies cover you in all countries that are part of the Green Card or International Motor Insurance Certificate scheme. The related document provides proof that you have the minimum compulsory third party international insurance and lists all the participating countries.
Domestic insurance plans do not usually cover U.S. citizens for international driving, regardless of the length of their trip. It is possible to obtain international car insurance, for example, for driving solely in Mexico, or only in Canada, so your intended destination is important when determining the insurance cover you need.
3. Local Requirements
Contact your embassy, consulate or foreign office for advice prior to taking your car overseas for an extended period. Some countries have strict regulations about car insurance for international drivers so check before you finalise your insurance cover. It is even the case that in some locations you must arrange your car insurance locally in your host country for the policy to be valid.
4. Level of International Insurance Cover
International insurance cover ranges from the legal minimum of third party cover (covering only damage done to another vehicle) to comprehensive cover, which includes elements such as accidental damage, theft, fire, severe weather, civil unrest and liability.
When you are looking for an international policy consider if it specifically includes:
• hotel costs should your car not be drivable
• break down assistance and towing costs
• a replacement car whilst repairs are carried out
• car parts and labour costs for repairs overseas
5. Costs
In general, the more comprehensive your insurance policy is, the more costs you incur. Prices will also vary depending on the countries you intend to drive in. For a U.S. citizen, insurance for travel in Mexico is often more expensive than for driving in Canada because of the perceived risks.
However, rates do vary greatly between insurance providers so shop around and compare services to find the cover and price which best suits your needs; Expat Finder’s search and quote tools can help you do this.
6. Claims Payment
If you are overseas for an extended or indefinite period, check that your provider will make any payments due to you in your local currency and to the bank of your choice in your host country. This way you have access to the money whilst overseas, and do not face unnecessary bank or currency commission charges.
7. Driving Licence Validity
It is illegal to drive without car insurance, and without a valid driving licence, you invalidate your car insurance. In some countries, you may drive for a limited time with a foreign or international driving licence and after this period, you must obtain a local licence. It is therefore vital to ascertain the requirements in your host country pertaining to a driver’s licence.
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Amanda van Mulligen
