What is the Best Way to Get International Student Car Insurance?
If you plan to buy or lease a car while studying in the United States, you’ll need to apply for and secure an auto insurance policy. However, in the U.S. car insurance follows the car rather than the driver. That means you may not need additional coverage to borrow and drive a friend’s car if it’s already insured.
Continue reading to learn more about how auto insurance works in the United States, how much you need, and how to get it as an international student.
Decide What Kind of Car Insurance You Need?
In the United States, drivers in just about every state (except for New Hampshire) are required to have car insurance to legally drive. As previously mentioned, car insurance follows the car and not the driver. That means if you’re borrowing a car from a friend or host family, you won’t need to pay for your own insurance. If you plan to borrow the car often, you may want to look into non-owner car insurance.
Instead of borrowing a car, you may decide to rent if you only need the transportation for a short period of time. When renting, you often set up insurance through the rental company. On the other hand, If you do decide to purchase or lease a car, you’ll need your own insurance and the required coverage levels vary from state to state. You can view the state by state requirements here.
5 Common types of Car Insurance
Collision: Property and bodily injury coverage to other drivers in an accident in which you are at fault.
Liability: Coverage for you and your vehicle in the case of an accident.
Comprehensive: Covers damages that occur from things other than an accident (i.e. vandalism)
Medical Payments or Personal Injury Protection (PIP): Covers medical bills for you and any passengers in the case of an accident with injuries.
Uninsured and underinsured Motorist Coverage: Protection for when you’re in an accident with an uninsured motorist.
Do you Need a U.S. Driver’s License to Apply for Auto Insurance?
You can often legally drive using your international license, but in order to apply for your own insurance you’ll most likely need a U.S. based license. Some auto insurance companies do accept international driver’s permits, but they probably won’t offer you the cheapest rates. Planning on staying in the U.S. for a longer period of time? We suggest applying for a driver’s license in the State your school is located within.
How to Get a U.S. Drivers License as an International Student
Pass a vision exam
Pass a Written test
Pass an in-person driving test
Check the Governor's Highway Safety Association (GHSA) to view the state by state licensing laws.
Best Car Insurance Companies for International Students
The overall cost of your car insurance in the U.S. varies based on factors like your age, driving record, driving record, credit history, address, and the type of vehicle you drive. This information along with knowing the amount of coverage you need, will help you determine the best company and plan for your situation. International drivers may face higher rates with certain insurance providers, so we recommend a company that often deals with international student.
Common Car Insurance Providers for International Students
Progressive
Allstate
Travelers
Geico
State Farm
Liberty Mutual
It’s always a good idea to check with your university as most U.S. colleges run programs to help international students buy auto insurance in the states.
How to Save on Car Insurance Premiums
Even as an international student, there are ways to find discounts and save on your policy and premium. The first and best thing you can do to ensure lower auto insurance payments is to start off with and keep a clean driving record. An at fault accident may raise your rates a considerable amount. On the other hand, it’s always a good idea to shop around for insurance. Most companies allow you to put all your information into an online form to generate and compare quotes within minutes.
Another way to keep your premiums low is to maintain good credit. As an international student you may not yet have a U.S. credit history and score built up. We suggest following this guide to ensure you start off on the right track in building your credit as a non-citizen. Another sure-fire way to reduce your car insurance costs is to raise your deductible. This is the amount you pay out of pocket in case of claim, the higher your deductible is, the lower your monthly insurance premiums will be. Finally, before finalizing your insurance, ask about relevant discounts. You may qualify for a discount for being a student, enrolling in driver safety courses, setting up autopay, and plenty more.
Looking for additional personal finance advice as an international student in the U.S? Upwardli has you covered with additional resources to help you find the financial services you need to build your credit and more.
