What Happens if You Move to Another Country With a U.S. Auto Insurance Policy?

As a responsible motorist, you’re likely well aware of the importance of auto insurance. However, international borders can present significant complications regarding your coverage, especially if you plan to cross them permanently or for an extended period of time. At Venegas Insurance & Tax Services, our knowledgeable team can help you navigate this process.

5 Key Auto Insurance Steps When Moving Abroad

If you’re relocating from the U.S. to another country, your auto insurance needs will change significantly. U.S. auto insurance policies generally do not provide coverage outside the country, although occasional exceptions may be made in Canada and Mexico. Regardless, it’s important to take proactive steps before and after your move, such as the following:

1. Notify your insurer. Let your insurance company know about your move. This helps avoid issues with billing or claims and ensures your policy is properly closed or adjusted.

1. Cancel or suspend your policy. If you’re selling your vehicle or won’t be driving in the U.S., contact your insurer to cancel or suspend your policy. Some insurers offer a “storage” or “non-use” option if you’re keeping your car in the U.S. but won’t be driving it.

1. Secure coverage abroad. Auto insurance is mandatory in many countries. Research local insurance requirements and purchase a policy that meets or exceeds the minimum coverage. If you’re renting a car, rental agencies often offer temporary insurance.

1. Maintain proof of policies. If you plan to return to the U.S., keep documentation of your foreign insurance. U.S. insurers may consider you as having a lapse in coverage if you can’t prove continuous insurance, which could raise your premiums.

1. Consider international coverage. Some U.S. insurers or specialty providers offer international auto insurance. This can be a good option for short-term stays or frequent travelers.

We’re Here to Help

Contact Venegas Insurance & Tax Services in Novato, California, to discuss this complicated topic before your big move.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.