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- According to Clements International, most U.S. insurance policies do not provide coverage in other countries. If you are planning a trip to Canada or Mexico, however, your U.S. policy may protect you while on your trip. Those planning an extended stay in a country abroad should purchase an international insurance policy to ensure adequate coverage while living in another country.
- If your U.S. policy covers you while traveling in another country, you should research the local insurance requirements to ensure you have adequate coverage. The policies issued by rental car companies may not provide enough coverage to meet the minimum requirements in the local area as well.
A policy issued by an international insurance company should have representatives that understand the local requirements to ensure your policy meets the requirements. The laws in the local area may require the insurance provider have a representative in the country as well. You may also be required to purchase liability coverage from a local insurance company, according to Clements International. - Plan to purchase liability coverage to meet local requirements from the international insurance provider or a local insurance company. Liability coverage pays another driver involved in an accident with you while traveling abroad. The policy should provide coverage for bodily injury and property damage to the other driver. An international insurance company may provide excess liability coverage to pay for the other driver's injuries or damage, which can protect you from lawsuits. Inadequate coverage while traveling abroad may also result in a lawsuit in the U.S.
- When purchasing insurance for travel or an extended stay in another country, ensure you completely understand the language in the policy. An international insurance provider should have the resources available to provide you with a translation of your policy.
U.S. Policy Coverage
Local Requirements
Liability Coverage
Translation
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