Foreign Car Insurance
When it comes to driving in a foreign country and making sure you are covered, it’s all about planning ahead. Sometimes we are more covered than we think we are and end up paying more than we need, or sometimes we are less covered than we think, and end up pay for it.
Just like the US, most countries have laws saying how much coverage a vehicle should have, and you will get fined or worse if these rules are not met. In some places rental car companies can get in trouble too for letting people drive with too little coverage.
There are three main ways to be covered: buy coverage through your insurance company specifically for the country you are going to, which they may offer or may have a partner that does; get it from the rental car company, much like one does here in the US; or go through your credit card company.
Going through the rental car company is definitely the easiest, though it may cost you the most. In some countries the insurance is added on, in some it’s included in the price. To get the insurance removed from your bill can sometimes cause a huge headache for you as that is where the car company generally makes most of their money. Make sure you have proof either from your insurance company or your credit card company that you are covered, as they will definitely NOT take your word for it.
If you decide to go through your credit card company, make sure you go through all of the fine print. They often will have very specific rules about where you can and cannot drive, even the types of roads that you can drive on. Make sure you understand all the rules thoroughly before you go.
You can also check with your insurance company that covers you already. Some companies will have partners in other countries that can cover you or your policy might even cover you already. A lot of policies will cover people up to 50 miles into Mexico and Canada, so give your agent a quick call to check.
By getting all your ducks in a row before you leave home, it is then one less thing that you have to worry about when you go on vacation. After all, who wants to think about car insurance when there’s sightseeing to do.