Who Should Have International Auto Insurance?

Anyone who is planning on driving anywhere outside of the country, international auto insurance should be considered carefully. Even if you have had the same auto insurance coverage for years, all of the rules change when it crosses national boundaries, and unless you have the right auto insurance coverage, your personal liability could be quite high if you are involved in an accident.

Domestic auto insurance coverage will not usually be sufficient, even for travel to Canada, and when going to Mexico or some South American locations, insurance companies automatically increase the risk assessment, to account for laws and customs that are not as safety aware as most American driving regulations.

International auto insurance is going to be a bit more expensive than domestic insurance, as noted. In some cases, a monthly coverage would cost the same as a full year's policy in the United States. Even with the best available rates, you can expect international auto insurance to run in the neighborhood of 2 to 3 times normal coverage.

Because most international driving is only for a short period of time, such as a vacation, international auto insurance is quite flexible as far as term period is concerned, and policies are usually available for anywhere from 1 month to 1 year in duration. Be warned, though, that the shorter the period of coverage, the more expensive the premium is likely to be. Insurance companies view out-of-country coverage as a high risk policy to begin with, and a shorter duration decreases the insurance company's opportunity to deflect possible damages through collected premium payments.

In addition to personal and commercial vehicles coverages for international auto insurance, the same type of coverage may be purchased for rental vehicles, as well. This allows you to rent a more comfortable vehicle, such as a van or luxury sedan, and save the ear and tear on your personal vehicle. This can be a great benefit if your personal vehicle is an older model, because having a mechanical failure while on a long international trip could be a dangerous and costly situation.

International auto insurance is well worth the investment for anyone traveling outside of the United States. If you are involved in an accident in another country, and don't have sufficient international auto insurance, you could be imprisoned if you do not enough cash on hand to pay for damages. For travelers abroad, having international auto insurance is the safest and least expensive route to take.