Car insurance in the US for tourists and non-US citizens

Can a tourist get car insurance in the US?

Yes. Most US insurers want a US driver's license, but Progressive and National General insure drivers without one. What decides your options is the address: a standard policy needs a "garaging address" where the vehicle is actually kept. If your vehicle has living quarters, such as a motorhome or a truck with a camper, full-timer coverage does not need one. Without either, only expensive non-standard insurers will cover you.

Proof of insurance is not required to register a vehicle in Montana, but insurance is required to drive it on public roads. This guide covers who will insure you, what address to give, which coverages you need, and how policies are priced and cancelled.

This is an article about insuring a vehicle in the United States, written for tourists, travelers, foreigners - anyone who doesn't live in the US, but wants to buy, own, and drive a vehicle here.

‍

Insurance agents for international drivers

The US auto insurance industry is set up to serve drivers with a US driving history and credit score, whose vehicle generally spends every night at the same address.

In other words, the US auto industry is not built for international travelers.

Having an agent that knows how different insurers and policies work with international drivers can mean the difference between the insurance company honoring or denying any claim that you might need to make.

visitor.us is not a licensed insurance agent, so we can't sell or arrange a policy. For vehicles with living quarters, we work with a partner that can.

With more than 30 years of experience insuring international drivers in the US, Thum Insurance is that agent.  

Thum writes full-timer policies for vehicles with living quarters: motorhomes, and truck/trailer or truck/slide-in camper combos. For other vehicles, see the insurers below.

‍

Insurers that accept a foreign driver's license

If you’re buying a vehicle as an international visitor to the US, you probably don’t have a US driver’s license.

There are a few high-quality auto insurers that don’t require a US driver’s license.  Those insurers are:

‍

The easiest way to start researching coverages and prices is to play around with the quote engines at those websites.

Note: these insurers' websites might not be accessible from outside of the US.

‍

What address to give your insurer

The first thing an insurer will ask for is your address.

For us Americans, that’s easy - 98% of the time we provide our home address.

For international visitors traveling around the US, the address question can be a bit unclear, so let's discuss the fundamentals.

Insurance is a regulated service. And in the US, there is no national insurance regulator. Insurance is regulated by the US states.

So US insurance policies are issued in one US state or another. And US auto insurance policies issued in any US state are valid in all US states and territories, as well as Canada.

Question: In which US state should an auto insurance policy issued?

Answer: In the US state in which the risk mostly occurs.

US auto insurers determine where the risk mostly occurs by asking for the vehicle's "garaging address," or where the vehicle is normally kept overnight.

I can hear you now: "But I'm going to be on a road trip - I'm not going to be anywhere normally."

If you want to buy a vehicle in the US, these are the rules of the game.

‍The right address to provide is one where the vehicle will actually spend time. 

A friend's or relative's address works only if the vehicle really is kept there. Listing an address where the vehicle never stays can give the insurer a reason to deny a claim.

‍

Using visitor.us' Address (Don't Do It)

If you hire visitor.us to register your vehicle, you may be tempted to give our address to your insurer. Our terms of service prohibit using our address as a garaging address. If your vehicle has living quarters and a full-timer policy, you are welcome to use our address as that policy's mailing address.

The reason for this is simple: we don't want your insurer to deny any claim that you might have because you list a garaging address where your vehicle won't spend any time.

‍

Vehicles with living quarters: full-timer coverage

If your vehicle has living quarters - a motorhome, or a truck/trailer or truck/slide-in camper combo - you are eligible for full-timer coverage, insurance designed for people who live in their vehicles full-time.

Full-timer coverage does not require a garaging address. It is typically only available once the vehicle has living quarters: if you buy a truck in January and a camper in February, coverage will typically start in February.

‍

No garaging address and no living quarters

If you don't have a garaging address and your vehicle doesn't have living quarters, you aren't eligible for a standard auto insurance policy.

You may be able to buy a policy from a non-standard insurer such as Prime Insurance, but it will be extremely expensive, on the order of $1,000 a month.

Can my vehicle be registered in Montana and insured in another state?

Yes. There is no absolute rule that a vehicle must be registered and insured in the same state. Each US state requires its own residents to register their vehicles there, but if you are not a resident of any US state, those rules don't apply to you. Our Insurance FAQ explains the exceptions, and why some insurance agents say otherwise.

‍

Coverages

Generally, there are two types of auto insurance:

• Liability, or third party, insurance, which is legally required to drive
• Comprehensive and Collision, or first party, insurance, which is optional (but recommended)

‍

Liability (third party) insurance

Liability insurance protects you financially if you're responsible for injuring someone else, or damaging their property.

Liability insurance is legally required to drive a vehicle on public roadways.

Examples of things that auto liability insurance covers include

• Injuries you cause to someone else while driving,
• Damage you do to someone else's vehicle while driving,
• Damage you do to someone else's property, like a fence or a garage, and
• Legal expenses for accident-related lawsuits.

‍

Liability insurance comes with pre-determined limits, which are the maximum that the insurer will pay.

You are responsible for any damage or injury that you cause over your liability insurance policy's limits.

Most auto liability policies have limits that are expressed as follows:

          $50,000 / $100,000 / $25,000

Where those numbers mean the following:

• Bodily injury liability per person: $50,000 is the maximum amount your insurance company would pay out for injuries you're liable for, per person,
• Bodily injury liability per accident: $100,000 is the maximum amount your insurer would pay out for injuries you're liable for, per accident.
• Property damage liability per accident: $25,000 is the maximum amount your insurer would pay out for damage to someone else's vehicle or property you're liable for, per accident.

Many travelers choose liability limits of $100,000 / $300,000 / $100,000.

If you would feel more comfortable with higher insurance limits, you might consider an umbrella insurance policy, which provides excess liability coverage, usually up to $1mln or more.

‍

Collision and comprehensive (first party) insurance

Collision insurance can pay to repair or replace your vehicle in the event of an accident with another vehicle or a stationary object.

Comprehensive insurance can pay to repair or replace your vehicle in the event of unexpected damage that's not caused by a vehicle collision, such as theft, vandalism, fire, flood, and falling items.

Neither collision nor comprehensive insurance are legally required in any US state. But they are a good idea to have.

Both collision and comprehensive insurance coverages are subject to a deductible (known as "excess" in other parts of the world), which you must pay before your insurance coverage kicks in.

Standard deductibles are $500 or $1,000, although you may raise or lower them to achieve your preferred mix of cost and coverage.

‍

Other coverages

Roadside assistance covers costs such as towing your vehicle to a service station, jump-starting your vehicle, locksmith services, and help changing a flat tire.

Uninsured motorist coverage can pay to repair or replace your vehicle if it is struck by an uninsured vehicle, or in a hit-and-run accident where the other driver is not identified.

Underinsured motorist coverage can pay to repair or replace your vehicle if it is struck by a vehicle whose liability insurance is insufficient to cover the damages to your vehicle.

Depending on your state, your insurance company may offer other coverages, such as medical payments or personal injury protection coverage.

Our advice on other coverages is straight-forward: better to have and not need, than need and not have.

‍

Policy period

A typical US auto insurance policy lasts six months, and a typical RV insurance policy lasts 12.

Your insurer may offer you a monthly payment option; a 10% discount for paid-in-full is standard.

You can cancel your insurance policy at any time and receive a refund of your unused premium, less a fee (usually 10% of the unused premium value).

You should also know that insurance agents get rewarded for policy renewals and penalized for policy cancellations.

So if the agent that you speak with declines to offer coverage after you tell them that you only want a two-month policy, don’t be surprised.

‍

Frequently asked questions

Can a tourist get car insurance in the USA?

Yes. Progressive and National General insure drivers without a US driver's license. You will need a garaging address where the vehicle is kept, unless your vehicle has living quarters and qualifies for full-timer coverage.

Can I get car insurance without a US driver's license?

Yes, from insurers such as Progressive and National General. Most other US insurers require a US driver's license.

What address do I give my insurer if I'm traveling?

The garaging address, meaning the address where the vehicle spends most of its time. Don't list an address where the vehicle is never kept: an insurer can deny a claim if the garaging address is wrong.

Do I need insurance before I register my vehicle?

Not in Montana. Proof of insurance is not required to register a vehicle in Montana, but insurance is required to drive on public roads.

Can my vehicle be registered in one state and insured in another?

Yes, there is no absolute rule against it. Residents of a US state must register their vehicles there, but a visitor who is not a resident of any US state is not covered by those rules.

Is there insurance for RVs and campers without a fixed address?

Yes. Vehicles with living quarters, such as motorhomes and truck/camper or truck/trailer combos, can get full-timer coverage, which does not require a garaging address.

Is visitor.us an insurance agent?

No. visitor.us is not a licensed insurance agent and cannot sell or arrange an insurance policy.

Conclusion

If you want to buy a vehicle in the US - and legally drive it on public roadways - you'll need liability (third party) insurance.

And you'll probably want collision and comprehensive insurance to cover against damage to your vehicle.

The key thing to remember when you're shopping for a US auto insurance policy is that insurance is regulated by the US states, not the national government.

We Americans (stationary Americans, anyway) don't have to think much about this: we take out an insurance policy in the state in which we live.

But if you're an international visitor that doesn't live in the US, figuring out the US state in which to take out an insurance policy will take a bit more thought.

Once you've decided the state in which you'll take out your insurance policy, find an insurer that doesn't require a US driver's license (if you don't have one) and choose the coverages that you feel most comfortable with.

If you haven't registered your vehicle yet, you can do that first: proof of insurance is not required to register in Montana. visitor.us registers vehicles for international visitors in their own name, with no LLC. See how Personal Registration works.

‍

If you’d like to keep learning, please check out the following resources:

• How to buy a vehicle in the US as an international visitor
• How to register a vehicle in the US as an international visitor

‍

Thanks for reading!