Will my auto insurance cover international rentals? (2024 Coverage Details)
Will my auto insurance cover international rentals? Most U.S. auto insurance policies don’t cover rentals abroad, meaning you’ll likely pay $1 to $30 per day for rental car insurance. However, the cost of international car insurance coverage varies by state. Compare internal rental car policies to ensure you're protected.
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Jeff Root
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Jeff is a well-known speaker and expert in insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading fina...
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UPDATED: Nov 4, 2024
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UPDATED: Nov 4, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.
On This Page
Will my auto insurance cover international rentals? Most U.S. auto insurance policies do not extend coverage for rentals outside the country, which can leave travelers financially vulnerable in case of an accident or damage.
It’s essential to understand your options before renting a vehicle abroad, as you may need to purchase additional coverage, which typically costs between $1 and $30 per day. The cost of international car insurance coverage can vary, and while providers like State Farm and Geico offer favorable rates, be sure to review your existing policy.
Additionally, many car insurance companies also require local liability insurance, especially in countries like Mexico. To avoid unexpected costs, compare insurance coverage for rental cars abroad and foreign auto insurance options. This will help you travel with confidence.
Read more: Why is my car insurance so expensive?
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- Most U.S. auto insurance policies do not cover international rentals
- Additional rental car insurance is often needed, costing $1 to $30 daily
- Compare insurance options before renting abroad for proper coverage
U.S. Auto Insurance Coverage for Renting a Vehicle While Traveling Internationally
The most likely answer is no. According to the U.S. Department of State, U.S. auto insurance coverage generally doesn’t protect drivers outside of the United States or Canada (more on that below).
If you plan to rent a car while traveling abroad, consider buying rental car insurance from a provider in the destination country. However, note that the law may require you to buy auto liability insurance from a company based in the country you’re visiting before you can rent a vehicle.
Furthermore, When renting a vehicle abroad, U.S. auto insurance typically doesn’t cover international rentals. This is why travelers should consider car rental insurance abroad or for those visiting the U.S., car rental insurance for foreigners in the USA. Rental companies often provide these options to ensure drivers are protected while navigating unfamiliar areas.
For more extensive coverage, consider worldwide coverage for car insurance or policies that offer car insurance coverage for vehicles overseas. Providers like State Farm may offer insurance coverage for rental cars, but it’s important to confirm what is included before traveling. This ensures you’re fully protected wherever you rent a car.
Read more: Auto Insurance Coverage for Rental Cars
U.S. Auto Insurance Coverage for Car Rentals in Mexico and Canada
Generally speaking, U.S. auto insurance will cover rentals in Canada but won’t cover rentals in Mexico due to insurance laws in each country.
Here’s how some of the largest auto insurers in the United States handle coverage for U.S. drivers in Canada and Mexico:
U.S. Auto Insurance Coverage in Canada and Mexico
| Company | Canada | Mexico |
|---|---|---|
 | Same coverage as in U.S. | You should purchase insurance from a Mexico-based company |
 | Same coverage as in U.S. | You should purchase insurance from a Mexico-based company (Geico can get you in touch with a partner insurer) |
 | Same coverage as in U.S. | You should purchase insurance from a Mexico-based company |
 | Same coverage as in U.S. | Ask your local agent about your policy and alternative coverage |
 | Same coverage as in U.S. | You should purchase insurance from a Mexico-based company (USAA may cover loss or damage within a certain distance of the U.S.-Mexico border) |
 | Same coverage as in U.S. | You should purchase insurance from a Mexico-based company (Liberty Mutual can get you in touch with a partner insurer) |
 | Same coverage as in U.S. | You should purchase insurance from a Mexico-based company (Farmers may cover loss or damage within a certain distance of the U.S.-Mexico border) |
 | Same coverage as in U.S. | You should purchase insurance from a Mexico-based company |
Regardless of your insurance policy, if you’re taking a trip south of the border, you’ll need to purchase liability insurance. This is because Mexico requires all drivers to have liability coverage from a Mexican insurance company.
In addition, U.S. auto insurance typically doesn’t provide full coverage for rentals in Mexico or Canada. Providers like Erie offer insurance coverage for rental vehicles as extended protection for those traveling abroad. It’s essential to verify your policy, as most U.S. insurers won’t automatically include insurance coverage for car hire abroad, leaving you vulnerable without proper coverage.
For international drivers, Geico auto insurance for drivers with foreign licenses provides a reliable solution tailored to non-U.S. travelers. Reviewing your international auto insurance policy details is crucial to ensure you’re fully covered and avoid unexpected expenses while renting a car overseas.
Read more: Rental Coverage Auto Insurance
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Where to Find Temporary International Auto Insurance
There are a few options for insuring your rental car when traveling internationally. Keep in mind that you may need to have two or more of the coverage options listed below to be adequately protected.
- Rental Location Insurance: Car rental insurance purchased at the rental location is typically more expensive than alternatives, but it’s still much better than driving uninsured.
- Pre-Purchased Auto Insurance: Auto insurance purchased in advance can save you significant money and time, and you can even buy rental insurance online.
- Credit Card Rental Coverage: Many credit cards offer coverage for rentals outside the United States. According to the Insurance Information Institute, credit card coverage is usually secondary, so it won’t replace standard rental insurance entirely. Contact your credit card issuer to check if your card offers rental coverage and what’s included.
- Travel Insurance Collision Coverage: Some comprehensive travel insurance policies include collision coverage for rental cars.
Ensuring you have the right protection for your rental car while traveling internationally is crucial for a stress-free experience. Options like Geico auto insurance for international car rentals can provide the necessary coverage. Additionally, exploring car rental insurance options for foreigners in the USA and considering international car insurance for rental vehicles can help you stay protected.
By combining different types of coverage, such as rental location insurance, pre-purchased auto insurance, and travel insurance collision coverage, you can create a comprehensive plan that meets your needs and allows you to travel confidently without the worry of being uninsured.
Check out our rental car insurance FAQ to learn how to get the right coverage for your rental car, giving you peace of mind while traveling.
What Rental Insurance Covers
“Rental insurance” from the rental car company actually consists of a few different types of coverage that are frequently purchased together. It may make sense to only purchase some or even none of these when renting a car for international travel. That depends on the coverage you already have.
Rental Car Insurance Breakdown
| Type of Coverage | What It Does | How Much is It? |
|---|---|---|
| Loss Damage Waiver (LDW) | Renter will not be responsible for damage to or theft of the vehicle | $9 to $30/day |
| SLP (Supplemental Liability Coverage) | Provides up to $1 million in liability coverage | $7 to $15/day |
| PAI (Personal Accident Insurance) | Provides medical and accidental death benefits if you are injured or people are killed in the accident | $1 to $7/day |
| PEC (Personal Effects Coverage) | Reimburses renter for the value of property stolen from the rental vehicle | $1 to $5/day |
| RAP (Roadside Assistance Protection) | Renter is not financially responsible for chargeable roadside incidents | Varies |
It’s worth noting that loss damage waivers are sometimes called collision damage waivers (CDW). In some places, CDWs and LDWs are purchased separately. The former covers collisions, and the latter covers theft.
It’s also important to know that the rental car coverage on your policy has nothing to do with coverage for a rental car. It’s better known as rental reimbursement and pays for a rental car while yours is being repaired due to a claim.
Explore our guide on car insurance rental reimbursement coverage to learn how it keeps you covered while your car is being repaired after a claim.
Car Insurance Coverage for Rental Cars in Europe
It would help if you compare auto insurance before going on your trip, as you could save a lot of money. If nothing else, knowing the insurance options at your destination will make it easier to decide what you need to purchase at the car rental.
It can be particularly helpful to plan ahead if you’re renting a car in Europe. This is because you’ll want to make sure that any auto coverage you purchase in Europe is valid in every country you plan to visit.
Subsequently, when renting a car in Europe, it’s essential to understand the insurance coverage for international car rentals to ensure you’re adequately protected. Most U.S. auto insurance policies do not cover rentals abroad, so checking your current policy is crucial.
If you are insured with State Farm, you can explore renting a car with State Farm insurance coverage, but it’s important to confirm the details regarding international rentals.
To ensure you have adequate protection while renting a car in Europe, consider exploring car insurance coverage for rental cars in Europe or auto insurance coverage for international rentals to address any coverage gaps. Additionally, obtaining out-of-country car insurance can offer extra security during your travels.
If you’re planning to travel extensively, auto insurance for vehicles overseas can provide valuable peace of mind. By thoroughly assessing these options, you can enjoy your European adventure without concerns about your insurance needs.
Read more: Types of Auto Insurance Coverage
What to Consider Before Purchasing Auto Insurance for International Rentals
Before purchasing auto insurance for international rentals, it’s essential to consider several key factors. First, verify whether your U.S. auto insurance covers you in the country you plan to visit. It’s also a good idea to check with your U.S. insurance provider to see if they can help you find a local insurer.
Additionally, confirm whether your credit card provides coverage for rentals outside the United States, as this can offer valuable protection. You may also want to explore the option of buying car rental insurance before your trip, which can save you time and money.
Lastly, assess if you can decline some or all of the insurance options offered by the rental company based on the coverage you already have. By taking these steps, you’ll be better prepared for your international travels.
Read more: Auto Insurance Coverage: What events are and are not covered by your policy?
Understanding Car Rental Insurance for International Travel
When planning to travel internationally, it’s crucial to understand car rental insurance for international travelers to ensure a smooth journey. Before renting a vehicle, verify whether your current US car insurance coverage in Europe is adequate, as many U.S. policies might not offer sufficient protection while abroad.
Securing the right insurance coverage when renting a car in Europe can help you avoid unforeseen expenses and allow you to enjoy your adventure with peace of mind.
Most U.S. auto insurance policies do not cover rentals outside the country, so it’s important for travelers to purchase additional coverage before renting a car abroad.
Kristen Gryglik Licensed Insurance Agent
Also, consider the different options available for insurance coverage when hiring a car abroad. While rental companies do provide their own insurance packages, these can often be costly and may duplicate the coverage you already have through your credit card or personal auto insurance.
By understanding your car rental insurance for international travelers, you can make informed decisions and ensure you have the right protection during your travels.
Discover our guide on cheap auto insurance in California, where you’ll find affordable options that can help you save money while ensuring reliable coverage for your vehicle.
If you’re looking to lower your auto insurance premiums, enter your ZIP code into our free quote comparison tool below to compare your rates against the top insurers.
Frequently Asked Questions
Does Allstate auto insurance provide coverage for international car rentals?
Allstate auto insurance typically does not extend coverage for international car rentals. It’s important to check with Allstate directly or review your policy details to understand any specific limitations or options for coverage while traveling abroad.
Does Erie auto insurance cover rental cars internationally?
Erie auto insurance generally does not provide coverage for rental cars used internationally. If you plan to rent a car outside the U.S., it’s advisable to contact Erie for detailed information on your coverage and explore additional insurance options. Find the best auto insurance rates no matter how much coverage you need by entering your ZIP code below into our comparison tool today.
Do I need car insurance to rent a vehicle outside the US?
Yes, having car insurance is crucial when renting a vehicle outside the U.S. Many rental companies require proof of insurance, and having adequate coverage can protect you from significant financial liability in case of an accident.
Read more: Will my auto insurance cover other cars?
Is car insurance necessary when renting a car in Europe?
Yes, car insurance is necessary when renting a car in Europe. Most European countries require drivers to have insurance, and rental companies typically offer insurance options. Always review your current policy to see if it covers you while driving in Europe.
Does my credit card include coverage for international car rental insurance?
Many credit cards offer some level of coverage for international car rental insurance. However, this coverage often acts as secondary insurance, so it’s essential to contact your credit card issuer to confirm the details and limitations of the coverage provided.
Does U.S. auto insurance cover international rentals?
Most U.S. auto insurance policies do not cover rentals outside the United States, especially in countries like Mexico. For international travel, it’s recommended to purchase additional insurance to avoid liability and ensure full coverage while driving abroad. Find out how auto insurance companies determine your premiums.
How much does international car rental insurance cost?
The cost of international car rental insurance varies by country and can range from $1 to $30 per day. Prices depend on factors like the type of coverage, the rental company, and the country’s regulations.
Do I need additional car insurance to rent a car in Mexico and Canada?
U.S. auto insurance generally covers rentals in Canada, but not in Mexico. Mexican law requires all drivers to have liability insurance from a Mexican insurance company. It’s crucial to buy this coverage when renting a car in Mexico to avoid legal issues.
What types of rental car insurance should I consider when traveling internationally?
When renting a car abroad, you may need several types of coverage, such as liability insurance, collision damage waivers (CDW), and theft protection. Reviewing your current policies and understanding what your rental company offers will help you determine the coverage you need.
Can I buy rental car insurance before my trip?
Yes, you can purchase rental car insurance ahead of time. This is often a good idea, as it allows you to compare rates and coverage options, potentially saving you time and money when you arrive at your destination.
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Jeff Root
Licensed Insurance Agent
Jeff is a well-known speaker and expert in insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading fina...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.