You need car insurance to drive in the United States, even if you are not a U.S. citizen.
If you are a short-term visitor and want to rent a car, you can get the necessary coverage from the rental company. But, if you plan to stay here for a long time, you may need to buy car insurance for non-U.S. citizens from a U.S.-based insurance company.
Keep reading to learn all about car insurance for non-U.S. citizens.
- Non-U.S. citizens can buy car insurance if they have an international driving permit and a valid driver’s license issued by their home country.
- Not all states recognize international driving permits; requirements vary by state.
- Car insurance providers consider age, driving history and credit history when deciding whether or not to insure a foreign driver.
Car insurance requirements in the United States
For stays extending beyond a month, purchasing or leasing a car may be more cost-effective than long-term rentals, depending on your needs and circumstances.
To drive in the U.S., you must have a valid license and an auto insurance policy for non-U.S. citizens that meets state-mandated requirements. Most states require drivers to carry liability coverage, which varies by state but typically includes property damage and bodily injury protection.
Types of car insurance coverage in the U.S.
- Liability coverage: Liability covers the other driver’s bodily injury and any property damage if you are at fault in an accident. It protects you from financial loss and legal consequences, ensuring victims are compensated for their losses.
- Collision coverage: Protects you if you’re at fault in a collision and your car is damaged.
- Comprehensive coverage: Protects your vehicle from weather-related damage, theft, animal/vehicle collisions, and vandalism.
- Underinsured/uninsured motorist coverage: This helps you pay medical bills and even covers property damage if the other driver, who is at fault, does not have auto insurance.
- Personal injury protection: PIP covers the cost of medical treatment after a collision regardless of who is at fault.
How do foreigners get car insurance in the U.S.?
Your international driving permit proves you can drive in the United States. However, some states require you to have your IDP and your foreign license.
If you have an IDP and your foreign license is valid, getting car insurance may be simple. Look for a car insurance carrier you trust, get a few quotes and shop for the best car insurance.
Zhaneta Gechev founded One Stop Life Insurance, which sells online life insurance. She is originally from Bulgaria and is based in Las Vegas. She also has had firsthand experience looking for auto insurance with an international driver’s license.
She says even if you find an insurer who will cover you, you’ll want to shop for quotes to get the best rate and coverage.
“The best thing you could do is simply reach out to a broker,” Gechev says. “You could ask friends and family who they have insurance with.”
Can I drive a car in the U.S. with a Mexican driver’s license?Many national and regional U.S. auto insurers offer policies to foreign drivers if they have a valid driver’s license from their home country and an international driving permit, according to Mark Friedlander, director of corporate communications for the St. Johns, Florida-based Insurance Information Institute.
“However, some states may require you to get a driver’s license from the state you reside in – such as foreign students going to college – within 90 days of being in the United States,” he says.
Getting auto insurance in the U.S. without a U.S. driver’s license can be difficult
Like shopping for any other insurance policy, compare policies and insurers – but remember that not every carrier will clamor to sign you up.
“When we arrived in the States in 2005, we did not have U.S. driver’s licenses and had to search for companies that would offer us auto insurance,” Gechev says.
Even though Gechev worked for State Farm then, she couldn’t get car insurance from State Farm.
“At that time, you were considered an inexperienced driver if you hadn’t had your U.S. license for more than three years. So, even with the U.S. license, I had to seek out other carriers,” Gechev says.
That’s why it can be hard to find car insurance for foreigners in the United States: If you haven’t been driving for a long time or at all in America, an insurance company doesn’t know whether you’re a safe driver or one who will take a lot of risks. Since you have no substantial driving history in the United States, it’s hard for an insurance company to determine a price for your monthly premium.
What factors do car insurance carriers look at for non-U.S. citizens?
Several things could make it harder or easier to get car insurance if you are a non-U.S. citizen and hoping to drive in the United States with a foreign license – or even if you’re a non-U.S. citizen and you have a state driver’s license:
- Your age: Insurers tend to look more favorably on non-U.S. citizens seeking car insurance who are 25 or older (that’s the case for American drivers as well). Even if you have an IDP or a state driver’s license, if you’re younger than 25, you may have trouble getting insured – and you’ll likely pay higher monthly premiums than older immigrants. If you are younger than 18 and a non-U.S. citizen, your odds of getting car insurance are very low.
- Your driving history: If you’ve had any accidents or speeding tickets, that might hurt your chances of being insured, but it definitely will increase your premiums.
- Your credit history: Insurers can use your credit history to determine your insurance eligibility and rates, except in California, Hawaii, Massachusetts and Michigan.
Per Mark Friedlander with the Insurance Information Institute, Canadian residents are allowed to drive in the United States with a Canadian driver’s license and Canadian plates on their vehicle. Mexican residents can drive in the U.S. for up to one year using an international driving permit and a valid Mexican driver’s license.
If you’re a Canadian visiting the United States on vacation, there’s no need for additional insurance coverage; your existing Canadian policy should cover you. But suppose you’re moving permanently from Canada to the United States. In that case, you’ll need to register your vehicle with the relevant Department of Motor Vehicles in your new state of residence and then purchase car insurance in the U.S.
“For U.S. drivers visiting Canada and Canadian drivers visiting the U.S., no additional insurance coverage is needed when driving over the border. U.S insurance covers all 50 states, its territories or possessions, Canada and between their ports,” says Julie Jakubek, an Allstate agency owner in Phoenix. “For U.S. drivers visiting Mexico, they’ll need to have an insurance policy issued to drive into Mexico. Several insurance agencies in many bordering U.S. states will offer insurance coverage to drivers from Mexico. Note that your U.S. insurance most likely will not cover you driving into Mexico.”
Car insurance for foreigners or short-term U.S. visitors
If you are visiting the United States temporarily, it may not be worth buying a car insurance policy. It is best to get temporary car insurance coverage from any car rental agency, covering any accidents during your stay in the United States.
This type of coverage is equal to liability coverage, which protects against costly damages caused by unintentional collisions with other vehicles on the road.
Car insurance for long-term international visitors to the U.S
If you are going to stay in the U.S. for an extended time and plan to buy or lease a car, it is crucial to get an insurance policy. In every state except New Hampshire, driving a vehicle requires auto insurance.
Companies that offer car insurance for foreign drivers
Although not every insurance company works with foreign drivers, many do. Below is a look at some of the insurers willing to offer car insurance to foreign drivers:
- Progressive
- Geico
- Bristol West
- Dairyland
- Infinity
- Kemper
- Hallmark
- Assurance
Other small insurance companies may be willing to offer foreign drivers car insurance. Take the time to shop around and explore all the options available.
Documents non-U.S. citizens need to get car insuranceHere’s what you’ll need in some states:
- International Driving Permit
- Valid driver’s license from your home country
In other states, you’ll need to obtain a U.S. driver’s license If you’re moving to the U.S. full-time you will want to get a U.S. driver’s license in your state of residence.
Car insurance with an international driving permit (IDP)
An international driving permit, commonly known as an IDP, is a document from your home country that proves you are licensed.
However, an IDP is not considered a valid driver’s license in the United States. Instead, it is a translation of your foreign driver’s license. A license from your home country should always accompany it.
You also must fulfill your native country’s driving requirements to obtain a legal driving license. A legal driving license and an IDP are enough to prove your driving ability – so you do not have to take a driving test in the U.S.
How do you get an IDP?
You can apply for an international driver’s permit if you are at least 18 years or older and possess a valid driver’s license. You must check with your home country’s transportation and regulations department to get your IDP.
Also, ensure you get your IDP before arriving in the U.S. You can only get an IDP from the country where your license was initially issued.
Do I need a foreign driver’s license to drive in the U.S?
To drive in the U.S., you must have a foreign driver’s license. Apply for an international driver’s permit (IDP) before leaving your home country—the IDP is issued from the driver’s home country.
Learn which countries have reciprocal agreements for driver’s licenses with the U.S.
Will my driving history in another country impact my insurance rates in the U.S.?
Typically, your driving record from another country doesn’t carry over to the United States. Consequently, when obtaining a quote, you’re regarded as a new driver without any prior driving background.
Your insurance premiums are likely higher due to your lack of driving history, regardless of your extensive driving experience in your home country. The primary reason for facing elevated rates as a newly licensed immigrant is the absence of a driving record in the U.S. Even if you’ve been driving for 20 years, your driving record begins when you’re issued a U.S. license.
Consequently, insurance companies categorize you as an “inexperienced driver” and assess you as high-risk since there’s no documented driving history to reference in the motor vehicle records maintained by each state. You’ll likely continue to pay higher premiums until you establish a track record of safe driving, which may take several years.
Car insurance for undocumented immigrants in the U.S.
Undocumented immigrants who move to the U.S. permanently might struggle to get car insurance. That’s because most car insurance companies require drivers to hold a valid U.S. driver’s license.
Undocumented immigrants who are eligible for the federal Deferred Action for Childhood Arrivals program with a Social Security Number and an employment authorization document can obtain a driver’s license in any state by passing the standard driving tests.
For undocumented immigrants not eligible for DACA, 19 states and the District of Columbia allow undocumented immigrants to obtain a U.S. driver’s license. Depending on the state you live in, the driver’s license issued might be different from a standard driver’s license.
With driving privileges officially granted, undocumented immigrants can shop around for an insurance company willing to issue a policy.
What to do if involved in an accident as a foreign driver
If you are involved in an accident in the U.S. as a foreign driver, start by ensuring you and your fellow drivers are safe. Here’s what to do:
- Prioritize safety. Moving the vehicle to the side of the road, checking for injuries and calling 911 should be the first things you do.
- Gather your documents. As you wait for the police, gather your insurance documents and driver’s license to provide to the authorities.
- Document the accident scene. Take time to document the incident. This should include taking pictures of the scene and exchanging information with the other parties involved.
- Talk to your insurance company. Let the company know you’ve been in an accident. They’ll guide you through the next steps.
The bottom line
Although obtaining car insurance as a non-U.S. citizen can be challenging, the right level of coverage is required to drive on U.S. roads. Make the effort to obtain the coverage you need.
In conversation with experts
The right approach to obtaining insurance can streamline the process. Experts share their opinions below.
How to lower car insurance premiums as a foreign driver
Obtaining the right level of car insurance matters. But no one wants to overpay.
“For short-term visitors, opting for rental car insurance can be a more economical choice, as many rental companies offer comprehensive insurance packages,” says Shahzad Ayub, partner at Affinity Lawyers in Ontario, Canada.
Ayub also recommends shopping around for quotes, “Obtaining multiple quotes from various insurers is essential. This enables drivers to compare rates and find the best coverage tailored to their needs.”
What challenges do non-U.S. citizens face when getting car insurance?
“Many insurance companies perceive non-citizens as higher-risk drivers, leading to increased premiums,” Ayub says. “Some insurers may have restrictive policies for non-residents, limiting the available options.”
In addition to relatively high premiums, non-U.S. citizens often have to jump through hoops to obtain coverage. And when coverage is available, it’s typically more expensive.
Avoid common insurance pitfallsIf you are seeking out an international driving permit (IDP), scams are common. Get your documents from a reputable institution. Unfortunately, there are many scams offering quick international licenses or world-recognized licenses. To avoid falling for a scam, seek out your IDP from AAA and check your state’s DMV office for specific regulations.
FAQs: Car insurance for non-U.S. citizens in the U.S.
How long will my international driver’s permit be valid?
International driving permits expire after a year, depending on your home country. Keep track of your license expiration date because your IDP will expire if you lose your driver’s license.
What happens if you don’t apply for your IDP before arriving in the U.S.?
Apply for an international driving permit in person before arriving in the U.S. According to AAA, other countries cannot issue IDPs to be used in conjunction with a U.S. driver’s license. An IDP accompanying a U.S. driver’s license can only be issued in the U.S. An IDP must be issued in the same country as the traveler’s driver’s license.
Can I rent a car instead of purchasing auto insurance?
Renting a car is the best option if you only visit briefly. Rental car insurance — a collision deductible waiver — can be purchased at the rental counter. An international driving permit allows you to drive and rent a car and travel wherever you like.
What are the benefits of obtaining a U.S. driver’s license?
There are many reasons to get a U.S. driver’s license. Here are a few:
- Reduce the risk of fines: Obtaining a driver’s license for non-U.S. citizens reduces the risk of being fined.
- Makes communication with local authorities easier: It is always a good idea to have documents that make it easier to interact with local authorities.
- Lower car insurance premiums: Getting a U.S. driver’s license can help foreigners save money on car insurance. Not having one makes it difficult for insurers to assess the risk you pose, so you’ll pay higher rates.
- Discounts: Having a U.S. driver’s license, especially in your state, can get you discounts to parks, events, golf courses, spas and more, especially in the off-season.
Sources
- National Conference of State Legislatures “States offering driver’s licenses to immigrants.” Accessed November 2024.
- AAA. “International Driving Permit.” Accessed November 2024.
Ask the Insurance Expert
Laura Longero
Executive Editor
Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
Ask the Insurance Expert
John McCormick
Editorial Director
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
Ask the Insurance Expert
Leslie Kasperowicz
Executive Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
Ask the Insurance Expert
Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.