Understanding Car Insurance in the United States

Some important facts about insurance coverage for expats in the United States:

  • Even though you are not a U.S. citizen, car insurance is still required. If you have a vehicle and your state requires it, it is mandatory.
  • Insurance coverage is not mandatory in some states (for ex: Alabama, Iowa, Mississippi, New Hampshire, Pennsylvania). These states have financial responsibility laws.
  • You must show proof of insurance at the time of vehicle registration. Protect yourself and your car by having insurance.
  • Not every insurer offers every kind of insurance, particularly the optional add-ons or discounts. You’ll want to check with your policy or your insurance agent to find out which types of coverage are available to you.
  • Almost every state has minimum requirements for insurance, such as you must have a driver’s license and insurance before legally driving.
  • There are many different types of coverage. We’ve outlined the most common types below.

Different Types of Coverage

Liability: If you cause an automobile accident, and are found to be at fault, you are liable for the damages. 2 types of liability insurance: Property damage liability insurance (repairs to things like folded fenders and dented doors). Bodily injury liability insurance (repairs to people). This is the basic coverage and can be added on from there.

Uninsured motorist: In addition to covering the cost of your repairs when the at-fault, or liable, driver doesn’t have any or enough insurance, this coverage will pay for injury and death expenses. It can also come into play if you’re involved in a hit-and-run accident.

Comprehensive: Covers the repair or replacement of a vehicle that’s damaged from something other than an accident with another vehicle. These are mainly things outside our control like an animal or weather.

Personal injury protection: Aka no fault coverage. This will pay your medical bills and the people in your car if you get into an accident. Medical: This is normally optional. It covers you and the passengers in your car for medical treatment.

Collison: Pays for repairs when you hit another object with your car. For example, a fence or street sign. So unlike comprehensive which just covered weather and animal situations. This covers objects you could hit.

Gap: Most helpful for people who have long finance terms. Gap coverage works when your new – or newish – car is totaled or stolen. That’s when the difference between the value of your car and what you owe on it really matters.

Additional resources and sources:



5 Types of Car Insurance Coverage in the United States

At International AutoSource (IAS) we can help you get insurance for your new vehicle. This doesn’t have to be an overwhelming process. For example, if you rent a vehicle from IAS insurance is included. We are here to help you every step of the way and can point you in the right direction to help you find the right insurance coverage at the right price. To learn more contact us.

Call us 24/7 at +1 (833) 347-4489

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