The good news is that you can travel outside the state where you live without much change about your car insurance. You don’t need to have a car insurance provider in every state. Your car insurance from your home state is just enough to cover you while on something like a road trip. However, when that trip goes into Canada or Mexico, or another person is driving the car, there are some stipulations. So, while there is no such thing as “travel car insurance,” it’s all about making sure your standard car insurance meets all the requirements before going on a trip.
1 What Car Insurance Covers During Travel
Everyone gets car insurance for the same reason –they want to be covered for any injuries and damages in a car accident. While on the road elsewhere, you’ll naturally want these same protections. Car accidents can truly break the bank if uninsured. Not to mention, it’s also illegal in most states and countries to drive without auto coverage. As stated before, car insurance from one state (usually the one you live in) will cover you as you travel around the United States. It’s a standard road trip practice to have multiple drivers switch off in shifts. Because car insurance follows the car and not the driver, this can cause discrepancies. So that’s why you should consider the following additions to your policy:
- Named driver – This specifically lists drivers by name and entitles them to all protections listed by the policy of the car. These are drivers that typically are in the same household as the policyholder. This is also one of the foremost add-ons parents use for new, young drivers until they get their car.
- Permissive use – This functions the same as named driver, but for drivers not explicitly listed or named on the policy. Permissive use is usually applied to friends and acquaintances who don’t live with you but join you on the trip. Always check with your insurance company to see who has permissive use.
2 Traveling to Another State And Car Insurance
Your car insurance will be active throughout the United States as long as it is a visit. When you become a resident (staying at least six months there in a year), you may be required to register your car with the state and get insurance from a provider. For the sake of this post, we are just talking about visiting. Both your basic and full coverage will be active on a road trip. This includes comprehensive collision and roadside assistance coverage. If you are moving to a new state, you can see if your current insurers provide coverage for that state, so you don’t have to change.
3 Traveling Internationally And Car Insurance
There are two significant destinations that road trippers of the United States often drive –North to Canada and South to Mexico. So, that raises the question of if their car insurance will work while there. The answer is a bit of both:
- Canada – When traveling to Canada on the road, your United States car insurance should carry over with all the entitled coverage. Several insurance companies that provide coverage in the US also service Canada. However, if your stay is longer than three months, you will be required to get Canadian car insurance.
- Mexico – Traveling to Mexico in a car requires specialized insurance. Even visitors must have car insurance from a provider based in Mexico. Your insurer can help you find the right coverage and provider in Mexico before traveling. If you rent a car during your stay, the rental company will offer you upfront insurance.
Renting a Car For Travel And Car Insurance
If you’re flying to your destination and picking up a rental car on arrival, insurance is relatively easy since it is often offered at the check-out counter. When traveling to Mexico, it’s best to rent a car there and not drive a rental from America there as it can cause some insurance discrepancies. However, when it comes to driving rental cars to Canada, the insurance should carry over since some rental car companies do have operations in Canada. So, in conclusion, review your personal car insurance policy before traveling to see what protections may follow you on your trip.
