Making the transition to study in the United States can be a bit confusing on top of assimilating into a new culture and possibly a new language. In addition to those challenges, international students studying in the United States may find driving and the auto insurance process even more perplexing. Most states in the U.S require auto insurance before driving any vehicle. In the United States driving without auto insurance is a violation of the law.
Auto insurance works for drivers’ protection. In the event of a car accident, most students on a budget may not be able to cover the damages incurred from an accident. However, auto insurance will cover these damages so students do not have to pay them out of pocket. When purchasing car insurance there are a few measures international students may take to secure the cheapest student car insurance possible.
Shop Around for Student Car Insurance Deals
When looking for car insurance, some car insurance providers penalize international students. Some insurance providers require that international students possess a three year minimum driving record to become eligible for more coverage and lower rates. Look for companies that overlook the international student's driving history for the best inexpensive car insurance deals. A few car insurance companies will consider foreign driving experience in exchange for lower rates and deductibles, but the majority will overcharge for less coverage.
Additionally, when seeking the most inexpensive car insurance, ask potential auto insurance providers about fixed rates. Signing up for a six month or twelve month fixed rate policy locks in insurance rates, even in the event of an auto accident during the term of the contract. The longer the fixed rate policy the better, in terms of saving more money on auto insurance.
Amount of Car Insurance Required
By law, the minimum amount of auto insurance required is liability coverage. Liability coverage pays for damages caused to others and their vehicles, including medical costs if injury occurs. Liability coverage does not cover damages for the driver that caused the auto collision. If an auto insurance policy only includes liability coverage and a driver causes an accident, the damages to repair the driver’s vehicle that caused the accident comes out of pocket. In this instance, it may be wise for international students to purchase a car insurance policy which includes liability and physical damage coverage.
Furthermore, comprehensive car insurance will cover financial losses when a vehicle is stolen or destroyed by means other than an accident. While physical damage coverage and comprehensive coverage are not required, a vehicles current market value directly relates to the need to have physical damage and comprehensive auto insurance.
Insuring an Older Car vs. Newer Car
A car's market value declines as the car ages. The need for physical damage and comprehensive car insurance corresponds with a car's age. As a car’s market value declines the amount of physical damage coverage required declines as well. The amount of physical damage coverage declines until the auto insurance premium equals or surpasses the costs of repairing or replacing the car. According to International Student Resources, as a general rule If the car is five years or younger, select an auto insurance policy including liability and physical damage coverage. If the car is six years or older, save money by selecting a car insurance policy that only includes liability coverage.
A good place to start when looking for international student car insurance is free online car insurance quotes. These can provide a variety of quotes to select from when searching for the most inexpensive car insurance. Finding international student car insurance may be a bit tricky, but it boils down to thoroughly researching to find companies who do not penalize foreign drivers.
Reference
IStudentCity.com. International Student Insurance Center. (accessed July 7, 2010)
International Student Resources (ISR). Insurance Information. (accessed July 7, 2010)
Giselle Banks - I am a student working part-time as a freelance writer. I have been a 'ghost' writer for a nearly a year writing on topics ranging from ...
Join the Conversation