Auto Insurance for Foreign Drivers in the USA

Whether you’re visiting the USA for a short trip, or a long-term stay, it is crucial for you to learn about the auto insurance requirements here if you intend to drive. Here in the USA, auto insurance is mandatory in 49 out of 50 states except New Hampshire.

Now you might be wondering, what about foreign drivers? Do the same rules apply? Yes, they do! So, whether you’re planning to drive your own car, or a rented one, it is mandatory for you to have a valid auto insurance policy.

If you’re caught driving without auto insurance, then you can face serious legal consequences such as a fine of up to $500, or more, license suspension and even 6 months to 1-year jailtime. Don’t worry, you won’t get arrested the first time, but if it’s a repeat offense then you may, along with more strict legal consequences.

Can Foreign Drivers Get Auto Insurance in the USA?

Yes, the good news is as a foreign driver you can purchase auto insurance here in the US. But it’s not as simple, and straightforward as it is for US citizens or long-term visitors. If you’re visiting the US for a short-term stay, whether it’s a few days, weeks, or months, it can get quite challenging to get auto insurance.

Some insurers here have stricter eligibility criteria, and require documents such as a valid visa, local address, or, in some cases, a Social Security Number. Additionally, since you don’t have a U.S. driving history, insurers may classify you as a new driver, leading to higher premiums.

So, that’s why you should explore, and shop around to find insurers that provide auto insurance to foreigner drivers at a competitive rate from a reliable auto insurance agency.

While it can be done, it can still be somewhat challenging to acquire auto insurance for foreigners in the US, but it isn’t that difficult either. If you have a valid driver’s license, and a few essential documents, getting auto insurance shouldn’t be much of a hassle, especially if you know what need.

This guide has been constructively created by our dedicated insurance experts here at PLPD insurance to help foreigners seamlessly find the best auto insurance policy.

What Do Foreign Drivers Require to Get Auto Insurance in the USA?

As long as you have a valid driver’s license, VISA and your passport, you typically fulfill all the essential requirements to get auto insurance as a foreign driver in the USA. Then again, for a clearer understanding here’s a detailed breakdown as follows.

Valid Driver’s License – Either International Driving Permit (IDP) or US Driving License

You might be wondering whether you need a US driving license or if it is possible to use your home country driving license. As a foreign national visiting the US, you may not be eligible to apply for a US driving license, especially because you’re not a permanent resident here in the US.

So, the next best alternative is to get an International Driving Permit commonly abbreviated as IDP. If you’re already located in the US, then you will have to apply for it through their official website.

Once you have applied for it, it can take up to 2 to 4 weeks including processing and shipping time. After obtaining your IDP, you’re now eligible to apply for auto insurance anywhere in the US. Typically, the IDP is an officially certified translation of your home driving license.

Although, you can purchase auto insurance using the IDP as an alternative to the US Driving license, it can only be used for up to 1 year. After that if you’re staying in the US, and if you intend to drive, you will have to get a US driving license.

Passport, and Visa

Your passport and visa are crucial documents even to apply for auto insurance here in the US. Your VISA typically shows that as a foreigner you’re legally staying here in the US. Whereas your passport is your official ID card which contains your name, date of birth, country of origin, and other essential information.

So, while applying for auto insurance make sure to also provide digital copies of your VISA and passport to your insurer.

Local Address

As a foreign driver here in the US, you may not have a permanent residency, but it is always essential to provide an address. So, whether you’re staying at a hotel, a house or an apartment, you need to provide your current address/local residency.

Typically, your local address is used as a contact information, and to evaluate risk factors. For instance, some areas are more prone to car theft, or natural disasters like flood, storm or earthquakes. So, depending how secure your neighborhood is, and how safely you’ve parked your car can play a significant role in determining your auto insurance rate.

How Should Foreign Drivers Get Auto Insurance in the US?

The process of purchasing auto insurance for foreign drivers can significantly vary depending on your duration of stay in the US. Here's a detailed guide on securing auto insurance in the US, whether you're a short-term visitor or planning a long-term stay. Additionally, if you’re visiting from Canada, the conditions can significantly differ which is discussed in the following sections.

Short Term Visitors Can Get Auto Insurance from a Rental Car Company

If you’re visiting in the US for short term stay, then the easiest and most practical option is to rent a car. Rental car companies in the US have affiliations with auto insurance companies. So, instead of dealing with the hassle of finding auto insurance on your own as a foreign visitor, you can purchase the insurance via a rental car company.

The main advantage of getting auto insurance from a rental car company is, they will handle the paperwork and guide you through the process. Plus, they can recommend the best coverage options, help you understand policy limits, and ensure you're legally compliant.

So, if you’re looking to save time, and opt for convenience then acquiring car insurance from a rental company is a great idea. After all, you’re here in the US for a short time, that’s why it’s best to make the most of your time to enjoy your visit while relying on the official matters to the professionals.

Long Term Residents Should Directly Contact Local Insurers

If your visit in the US is long term, whether you’re an international student or you work here, it is essential for you to get a proper auto insurance, especially if you need to drive. Remember, auto insurance is mandatory in almost every state in the US, so without it you can get into various legal complications.

So, the best option for you is to find a suitable local insurance company, and purchase at least the mandatory minimum coverages. However, if you can afford multiple types of auto insurance coverage with higher limits then you should definitely go for it. In most cases, the minimum coverage isn’t adequate to cover severe accidents that incur hefty costs and compensations.

Auto Insurance for Canadian Visitors in the US

If you’re visiting the US from Canada, the conditions are significantly different compared to foreign visitors from other countries. In the US, your Canadian driver’s license and auto insurance is recognized, and it can be applied.

So, if you already have a driver’s license and auto insurance in Canada, you don’t have to go through any additional steps while you’re visiting the US. But if you’re not insured, then you can purchase auto insurance here.

Plus, if you're bringing your own vehicle into the U.S., you'll need to register it with the local Department of Motor Vehicles (DMV).

Auto Insurance for Undocumented Immigrants in USA

If you’re an undocumented immigrant here in the US abiding by local laws, and trying to figure out ways to get officially documented as a legal resident, you should consider getting auto insurance especially if you need to drive.

The main key requirement of purchasing auto insurance is to have a driver’s license. As of March 2025, there are 19 states that allow undocumented immigrants to obtain a driver’s license which includes the following.

• California
• Colorado
• Connecticut
• Delaware
• Hawaii
• Illinois
• Maryland
• Massachusetts 
• Minnesota 
• Nevada 
• New Jersey 
• New Mexico 
• New York 
• Oregon 
• Rhode Island 
• Utah
• Vermont 
• Virginia 
• Washington 
• Washington, D.C.

You can apply for it at the local DMV, or through Deferred Action for Childhood Arrivals (DACA) program in the 19 above mentioned states. Once you have a driver’s license, you can apply for auto insurance and purchase it in any of these 19 states.

If you’re really trying to get official immigration here in the US, acquiring auto insurance would be a huge step, as it shows your commitment to the local state laws in the US.

Types of Auto Insurance Coverages Recommended for Foreigners

When it comes to auto insurance the same laws, and regulations apply for citizens and non-citizens in the US. Even as a foreigner you need to abide by the local auto insurance requirements in the state that you’re located in.

Apart from New Hampshire, liability auto insurance is mandatory in every state throughout the US. Some states require you to have personal injury protection (PIP) insurance. Additionally, there are a few optional auto insurance coverages that are very essential for adequate financial protection.

ere are the key types of auto insurance foreign drivers should consider purchasing.

Liability Auto Insurance

Liability auto insurance is a mandatory auto insurance coverage that provides financial compensation to the other driver for bodily injuries, vehicle and property damage for an accident in which you’re at-fault. It also covers the medical expenses of any passengers of the other vehicle, pedestrians or any third party harmed in the accident.

In most states in the U.S., the minimum liability auto insurance is $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage. Although the minimum auto liability coverage that you need to purchase can vary from one state to another.

For instance, in Michigan, the minimum liability coverage that you need to purchase is significant higher which includes: 

• $50,000 for bodily injury per person 
• $100,000 for bodily injuries per accident 
• $10,000 for property damage

So, before purchasing liability auto insurance you should definitely check what is the minimum coverage limit in your state.

Personal Injury Protection (PIP) Insurance

Personal injury protection (PIP) is a no-fault auto insurance coverage that pays for your medical bills, and non-medical medical benefits such as loss of income, household services, caregiver services childcare, disability, and even funeral expenses, regardless of whoever is at-fault for the accident.

PIP insurance is mandatory in 16 states which includes Delaware, Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, and Utah.

Typically, the minimum coverage limit of PIP insurance can significantly vary depending on the state that you’re located. As each state has different coverage limits, but in general it mainly varies from $10,000 to $50,000.

While Michigan has some exceptional options for the mandatory PIP coverage limit which includes with either of the following according to your choice:

• Unlimited coverage 
• Up to $500,000 in coverage 
• Up to $250,000 in coverage 
• Up to $250,000 in coverage with PIP medical exclusion(s) 
• Up to $50,000 in coverage with Medicaid 
• PIP medical opt-out, if you have Medicare Part A and B

Collision Auto Insurance

Collision auto insurance is an optional type of auto insurance coverage that pays for your car’s repair and replacement costs if it gets damaged in a collision, regardless of whoever is at-fault of the accident.

Whether your car crashes into an object such as a tree, guardrail, a building or if it collides with another vehicle and gets damaged your collision auto insurance will pay for the repair and replacement costs based on your car’s actual cash value up to your coverage limit.

Accidental crashes and collisions are common in the US. According to NSC, there have been 5.2 million medically consulted injuries and 46,027 deaths as of 2022 due to motor vehicle crashes in the US. Based on NHTSA report there have been 6 million police reported car crashes which led to 29,135 deaths.

As car crashes are so high in the US, it is crucial for everyone to have collision auto insurance. Whether you own the car, or it’s rented, without collision auto insurance you will have to cover the repair expenses out of your own pocket after an accidental crash. So, that’s why it’s crucial for both locals and foreign nationals to prioritize getting collision auto insurance.

Comprehensive Auto Insurance

The comprehensive auto insurance is another highly essential optional auto insurance coverage that compensates vehicle damages that’s beyond your control such as theft, damage due to vandalism, fire outbreak, animal collision, natural disasters like flood, earthquake, and severe storms.

There are many areas in the US that have a high crime rate, so that puts your car at substantial risk of being stolen, or vandalized. Not to mention, every year there are severe weather conditions that can damage to the point it’s beyond repair.

Either way, there are so many possibilities of your car getting critically damaged due these incidents. So, even as a foreigner in the USA, it is crucial for you to consider having comprehensive auto insurance with adequate coverage to stay financially protected.

Just like collision auto insurance, comprehensive auto insurance also pays for damage repairs or replacement costs based on your car’s actual cash value up to your coverage limit.

Final Remark: Should I Get Auto Insurance as a Foreign Driver?

Car accidents are very common in the US, no matter how careful you’re, there’s always a substantial risk of getting into a car accident at any moment. Whether you’re visiting the US for a short visit or a long stay, just one car accident is enough to financially ruin you.

Starting from expensive hospital bills to hefty vehicle repair and liability compensations can strain you financially. On top of that, if you’re caught without auto insurance then you can get into legal issues.

So, to protect yourself financially and to stay legally complaint, you should consider acquiring adequate car insurance. If you’re interested to learn more about car insurance and purchase it in Michigan, then contact us right away to get a free quote and consultation with us today.