Understanding Auto Insurance for Foreign Drivers in the U.S.

Driving in the United States as a foreigner can be a complex process, especially when it comes to understanding auto insurance requirements. Whether you’re visiting for business, tourism, education, or temporary residence, it’s crucial to know the rules and regulations to ensure you’re legally covered on the road. At O1ne Mortgage, we aim to provide you with the essential information you need to navigate this process smoothly. For any mortgage service needs, feel free to call us at 213-732-3074.

Do You Need Auto Insurance as a Foreigner in the U.S.?

Foreign drivers in the U.S. must adhere to the same auto insurance laws as U.S. citizens. This is because your driving history in another country doesn’t apply in the U.S., so you’re treated like a brand-new American driver. Car insurance requirements vary from state to state, so it’s important to understand the specific laws in the state where you’ll be driving.

Here are four scenarios where you should consider U.S. auto insurance as a foreign driver:

• You’re visiting the U.S. on a business trip.
• You’re visiting the U.S. as a tourist.
• You’re attending school in the U.S.
• You’re living in the U.S., even temporarily.

To purchase car insurance as a foreign driver, you’ll need a valid driver’s license from your home country. Depending on your home country’s requirements, you might also need to apply for an international driving permit (IDP). Generally, car insurers offer policies covering six or twelve months, but some may offer shorter-term policies. If you’re renting a car, you may be able to purchase temporary coverage through the rental company.

How to Get Auto Insurance with a Foreign Driver’s License

If you have a foreign driver’s license and plan on staying in the U.S. for an extended period, follow these steps to obtain U.S. auto insurance:

1. Determine License Validity

First, figure out whether you can use your foreign driver’s license. It may allow you to buy car insurance, or you may need to apply for an IDP. Typically, you can drive in the U.S. with a foreign license for three months or an IDP for one year.

2. Search for Insurance Companies

Look for insurance companies that offer coverage to non-U.S. drivers. Some insurers only sell policies to U.S. drivers, so it’s important to find one that accommodates foreign licenses.

3. Assess Coverage Needs

Determine the type of coverage you need based on your driving status. If you have a foreign driver’s license, you’ll need coverage that lasts up to three months. If you have an IDP, you’ll need a one-year policy. If you plan to stay in the U.S. for more than a year, you may need to obtain a U.S. driver’s license.

4. Understand State Requirements

Each state has different coverage requirements. Nearly every state requires at least a minimum amount of liability coverage. Make sure you understand the specific requirements in the state where you’ll be driving.

5. Shop for Coverage

Once you’ve determined your coverage needs, compare quotes from at least three insurers. As a foreign driver, you may initially pay a higher rate, even if you’ve been a longtime license holder in your home country.

How Long Can You Use a Foreign License in the U.S.?

If you’re planning a long-term move to the U.S., you can drive with a foreign license for a certain amount of time, which varies by state. Typically, you can drive with a foreign license for three months or an IDP for one year. If you plan to stay in the U.S. for more than a year, you’ll likely need to obtain a U.S. driver’s license.

A state-issued driver’s license allows you to drive anywhere in the U.S. To obtain one, you’ll need to find out the license requirements for the state where you’re living. Each state has a government agency, often called a department of motor vehicles (DMV), that handles driver’s licenses. In some states, it’s a simple process of bringing your foreign-issued license to a DMV and getting a state-issued license. In other states, you might need to submit a license application and take a driving test.

Keep in mind that you might need to provide certain documents, such as an H-1B visa approval notice, before a state will issue a driver’s license to you.

Do I Need an IDP to Drive in the U.S.?

Not every U.S. state requires that a foreign citizen carry an IDP. However, if you do have an IDP issued by your home country—proving that you hold a valid driver’s license from that country—you can legally drive in the U.S. for up to one year. An IDP expires one year after it’s been issued.

The U.S. government does not issue IDPs. To get an IDP, contact the motor vehicle department of the country that issued your foreign driver’s license. You may not need to take a driving test to get an IDP.

The Bottom Line

Navigating U.S. car insurance requirements with a foreign driver’s license can be challenging. Remember that driver’s license requirements vary by state and insurance company, so be sure to understand the rules of the road before getting behind the wheel. For any mortgage service needs, O1ne Mortgage is here to help. Call us at 213-732-3074 for expert assistance.