Everything You Need to Know About International Car Insurance
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International travel is only getting more popular, with hundreds of millions of tourists visiting other countries so far in 2025. As fun and exciting as traveling abroad is, though, it also comes with extra considerations, especially if you plan to drive.
Purchasing proper auto insurance abroad for your trip is an essential part of adhering to local laws and managing your financial risks. But if shopping for international car insurance seems intimidating, don’t worry. Discover all your coverage options in this guide, plus tips for securing cost-effective protection.
How International Car Insurance Works
Most American car insurance policies only cover you while driving in the U.S. and Canada. If you’re driving in other countries, you’ll probably need international auto insurance. The exact type of coverage you should purchase depends on where you’re going, how long you’re staying, and how much risk you’re willing to accept.
Overseas driving insurance options include:
- Rental coverage: You can often purchase liability insurance and other coverage directly from the car rental company wherever you’re traveling.
- Temporary third-party coverage: Alternatively, you can buy coverage from a local insurance provider for the duration of your trip.
- Permanent coverage: If you’re relocating permanently to another country, buy local car insurance, just like you would buy a domestic policy while living in the U.S.
Like domestic auto insurance, international insurance breaks down into several types of coverage:
- Liability for damage to other people or personal property in accidents you cause
- Collision for damage to your vehicle
- Theft in case someone steals your vehicle
- Excess liability in case you exhaust your primary auto liability insurance policy’s limits
When You Need Local Insurance vs. Your U.S. Policy
If you have U.S. car insurance and are only traveling to Canada, your existing domestic policy may cover you on your trip. Some U.S. policies even extend coverage to traveling in Mexico.
However, your domestic policy likely will not cover you while traveling in any other countries. When you're traveling outside of the U.S. beyond Canada and Mexico, it can be best to purchase local auto insurance abroad. Luckily, you have plenty of options to choose from, such as:
- Top-up policies: For international insurance for road trips, consider top-up policies that offer coverage abroad in addition to any existing coverage you have.
- Foreign service/expat policies: If you’re traveling between multiple countries, a foreign service or expat policy from specialized insurance providers can cover you worldwide.
- Standard local insurance: Get a local plan if you’re permanently relocating to another country and planning to own a vehicle there. Or, if you’re going to drive but not purchase a vehicle, consider non-owner car insurance.
Essential Tips for Securing International Car Insurance
To avoid legal trouble or unnecessary financial risk, your best bet is to secure your international car insurance before you leave. While you’re shopping for your policy, keep these key tips in mind:
- Check coverage gaps: You may have some international auto insurance coverage through your domestic policy or your credit card company. Check what coverage you already have so you know what gaps in insurance you'll need to fill in with additional overseas motor insurance.
- Understand International Driving Permit (IDP) requirements: If the country you’re visiting requires an IDP, you can apply by mail or in person at an AAA branch office. You must be at least 18, have a valid U.S. driver’s license, complete an application, and pay the $20 permit fee. Make sure to carry both your international driver’s license and domestic license when driving abroad.
- Decide on your coverage options: Like domestic auto insurance, international policies can include collision, comprehensive, third-party liability insurance, and other types of coverage. Decide which you want to purchase based on the risks where you’re traveling and the local requirements.
- Compare policies: Don’t just purchase the first international automobile insurance policy you find. Make sure you’re getting the best deal on the coverage you want by comparing policies from multiple insurance companies.
Get Customized International Car Insurance Quotes
Finding the best international car insurance can be tricky. When you’re planning your trip, you don’t want to waste time trying to hunt down the best coverage at affordable prices. Instead, try EverQuote.
In just a few minutes, you can compare customized insurance quotes. Get your free auto insurance comparison from EverQuote today.
FAQs
Is there such a thing as international car insurance?
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Premiums are sourced from over 30,000 zip codes across 200 insurance companies. We estimate premiums based on public filings for policies seeking 50/100 in liability with $500 deductibles for collision and comprehensive coverage. Estimated rates are based on a 35-year-old single female with a good credit score and no history of accidents or violations driving a 2023 Toyota RAV4 LE. We partner with Quadrant Information Services to source our data and assume no unique benefits or discounts are applied for these rates (unless otherwise stated). Your own rates may be different.