If you’ve just arrived in the U.S. and are planning to drive, understanding car insurance for foreign drivers is one of the first steps you’ll need to take. Car insurance is required in most states, so let’s walk you through the key points you need to know about auto insurance in the U.S.
Driver’s Licenses and Car Insurance for Immigrants
To drive legally in the U.S., you need two things: a driver’s license and, in most states, vehicle insurance. The requirements for both can vary depending on where you live. Most states require a social security number (SSN) to obtain a driver’s license, but don’t worry—if you don’t have one, some states still allow you to get a license. Be sure to check with your local Department of Motor Vehicles (DMV) for specific requirements in your area.
Can I Buy Auto Insurance with an International Driver’s License?
Yes, you can. Depending on your country of origin and the state you’re in, you may be able to drive using your home country’s driver’s license or an International Driver’s Permit (IDP). In many states, you can use your foreign license for up to three months. An IDP could extend that to a year.
Many insurance companies, including State Farm, offer coverage for foreign drivers, provided they meet state requirements. However, some insurers may have restrictions or higher rates for drivers without a U.S. driving history.
Do I Need to Start from Scratch with Auto Insurance?
While you may have years of driving experience in your home country, having a driving history in the U.S. is what matters when it comes to insurance. In the U.S., you’re considered a “new driver” if you don’t have a local driving record. As a result, your premiums may be higher at first, even if you’ve driven safely for years elsewhere.
Why Is Auto Insurance Required in the U.S.?
Auto insurance is required in the U.S. because it protects you and others in the event of an accident. Without insurance, you could be liable for not only the cost of repairs but also medical bills for anyone injured, including yourself and the other driver. Liability insurance helps cover these costs up to the policy limits you choose.
What Minimum Coverage Do I Need?
Each state has different minimum coverage requirements for car insurance. Generally, you’ll need at least liability insurance, which covers property damage and medical costs for injuries caused by an accident in which you’re at fault. However, liability coverage doesn’t cover your own medical expenses or damage to your car.
In certain states like Michigan, Delaware, Florida, and New York, you may also be required to have Personal Injury Protection (PIP) or Medical Payments Coverage (MPC), which helps pay for your medical costs. However, damage to your own car would not be covered by PIP or MPC. For that, you would need collision coverage, which is optional in most states but could be a good choice if you can’t afford to repair your car out-of-pocket.
Additional Minimum Coverages in Some States
Some states also require additional types of coverage, such as Uninsured/Underinsured Motorist Coverage. This protects you if you’re involved in an accident with a driver who doesn’t have insurance or doesn’t have enough coverage to pay for the damages.
What Happens if I Drive Without Insurance?
Driving without insurance can have serious consequences. If you’re caught without coverage, you could face fines ranging from $50 to several thousand dollars. In some cases, your driver’s license and registration could be suspended or revoked—especially if you’re caught driving without insurance multiple times.
Getting Help from a State Farm Agent
Navigating the rules around auto insurance can be overwhelming, but you don’t have to do it alone. A State Farm agent can explain the details in a way that’s easy to understand, and many agents are bilingual, so you can communicate in your preferred language. They can help you find the right insurance coverage for your needs.
If I’m Vacationing from Canada, What Do I Need to Know?
If you’re visiting from Canada and already have a Canadian driver’s license and insurance, you’re allowed to drive in the U.S. using your current Canadian coverage. However, if you’re moving to the U.S. or planning to stay long-term, you’ll need to register your car at the DMV in your new state and obtain U.S. auto insurance.
Conclusion
Driving in the U.S. as a foreign driver means understanding the requirements for both a driver’s license and auto insurance. Whether you’re here on a short visit or planning to stay, ensure you’re covered before getting behind the wheel. Working with an experienced insurance agent can help ensure that you get the right coverage to stay protected.