How Does Auto Insurance Work If You Are Outside of the Country?

We have many customers who enjoy traveling, so it’s common for us to field questions about driving in other states, and even other countries. Our neighbor will be driving to Mexico to visit family for Christmas, so they naturally wondered about insurance coverage. As a general rule, a typical auto policy will provide coverage across the U.S. and Canada, and even in parts of Mexico.

At our agency, a policy is valid within any of the fifty United States, and will also protect you if you're driving in any United States territory (such as Puerto Rico, Guam, the U.S. Virgin Islands, etc.). If you cross into Canada, your policy will cover you throughout all Canadian provinces and territories, and between all ports, so you'll be well covered no matter where your trip takes you.

If you are crossing south into Mexico, be aware of some special considerations. Some policies are exempt when traveling over 25 miles past the border. They may also limit the number of days you may stay on each separate entry into the country. If you’re traveling deeper into Mexico or for longer than 10 days, any accidents you’re involved in will be subject to Mexican law. So plan ahead, and familiarize yourself with Mexico’s state and national insurance requirements. In some situations it’s probably wise to purchase insurance from a company licensed in Mexico. Play it safe and you will avoid having your car impounded, or possibly spending time in jail.

Make sure your insurance company provides claim service wherever you will travel, and that the claims representative is familiar with that particular state’s (or country’s) laws and regulations. That will get you back on the road as quickly as possible.