Types of Car Insurance Policies
Firstly, contact your current car insurer and ask whether you are already covered for overseas travel in your vehicle. If not, enquire about an extension to your existing insurance policy. Note that this usually only provides you with cover for a maximum of thirty consecutive days overseas. Furthermore, if you plan to be overseas for more than ninety days through the course of a year such an add-on policy is not a valid option. The same restrictions apply to a European car insurance policy, which many providers also offer.
For international businesses and expatriates, a separate international car insurance policy will offer more flexibility and a higher level of protection over a longer period. This type of insurance is also referred to as expatriates’ car insurance.
Don’t Over or Under Insure: Know Your Cover
As at home, the risk of under-insuring your car to save money is ill advised if you are going to transport or buy a car and run your vehicle overseas.
Comprehensive coverage will usually include*:
- Accidental damage
- Collision
- Criminal damage such as armed robbery, rioting or hijacking
- damage
- Liability
- Theft
- Severe weather such as hurricanes, earthquakes or flooding
- Protection in the event of windscreen damage
- Protection for breakage of audio equipment
If your car is new (less than one year old), it is also advisable to make sure that your insurance cover provides payment of the purchase price in the event of serious damage or theft of your car.
Arranging Insurance Cover
Prior to arranging any insurance cover for your car overseas, check the requirements in your host country through the foreign office. In some countries, it is mandatory to arrange a policy through a local company. To this end, some international insurance providers will represent you and arrange the right cover with a trusted local company in your destination country.
In other cases, insurance companies offer policies directly, through a subsidiary company overseas or via a broker. Check a company’s website to see how they arrange and secure their policies.
Claims
Prior to signing up for a policy, check with insurers how accidents and claims determine premium increases. Asking for this information whilst you are shopping around could save you a considerable amount of money in the future.
Check also that your insurance company will pay any claim awards into your local bank and in your local currency to avoid that you pay unnecessary commission and bank charges.
Shop Around
The costs of your international car insurance policy will depend primarily on two factors. Firstly, the price will fluctuate depending on the country you are living or travelling in. For example, insurance companies deem U.S. citizens taking their cars into Mexico far riskier than driving them through Canada. The insurance premium prices reflect this risk.
Secondly, your personal circumstances, driving history and experience will help determine insurance policy costs. Insurance providers consider your driving record, traffic offences, at-fault accident history, claims history, age and even gender to assess the risk of insuring you and determining your premium charges. Many will also offer discounts for safe drivers so shopping around and negotiating can provide a good reduction on your policy costs.
Many companies offer insurance cover online and carefully comparing services and cover can certainly save you money - Expat Finder saves you time with a quote service, providing multiple quotes at once so you can shop around with ease.
Here is an overview of the information insurance companies may want from you:
- Personal information such as address, date of birth, gender, licence information
- Car information such as make and model, age of car, VIN, primary use of vehicle, fuel type, alarm type
- Type and amount of coverage you want
- Insurance history: obtain a letter of proof from your last insurance company
- Details of drivers on the policy
Finally, when you have a shortlist of providers read what their customers say about them in testimonials and reviews.
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Amanda van Mulligen
