Auto Insurance For Foreingners

Whether you're visiting the country for business or pleasure, you will find that life and the U.S. hinges on having ready transportation. And while many major cities have superior public transportation resources available, there's nothing like driving your own vehicle, when you want to - on your own terms. However, you need to realize that in every state, maintaining at least minimal amounts of liability insurance is a legal requirement.
It's the law - and there are stiff penalties for not following it including:

• Fines;
• Loss of driving privileges;
• Impounding of your vehicle;
• Possible jail time;

And if you're involved in an accident, especially if you're at fault, without being able to show proof of having valid automobile insurance, you may be subjected to the following:

• Paying for all damages to property and persons, including yourself, or
• Financial ruin;

So it's obviously very important for all foreign visitors to the United States to have a solid plan for obtaining the cheapest auto insurance available. Here's how to do it:

• Obtain an international driver's license from your home country. You will not be permitted to purchase a vehicle or insurance without it.
• Compare the coverage and cost plans here at the site. Be sure to get quotes from industry leaders like Geico, Progressive, Allstate and AIG.
• If you have a friend or relative in the United States, then you will want to see if you can be included on their insurance policy. This can be easier done and save you money.
• Remember that if you're renting a car, the rental company will provide insurance for you. Make sure you understand your coverage limits - and compare rates between different rental companies.

Other tips for finding the cheapest auto insurance for foreign visitors to the United States:

• Find out if the company that issues your credit card will provide you with foreigner automobile insurance.
• See if it is possible to add a clause for automobile insurance coverage to your travelers insurance policy that you have from your home country.
• Remember that there is a 1 year validity period for international driver's licenses. If you will be staying longer than that, then you will want to obtain a US drivers license from the state that you are residing in.

The Contents of your Insurance Policy

Your automobile insurance policy is a binding legal contract. But don't let that keep you from reading it, because it's actually very important to do so.

Your personal auto policy, or "PAP", will have five distinct parts (scroll down or click to see the definitions):

1. Declarations
2. Insuring Agreement
3. Definitions
4. Exclusions
5. Conditions

In most personal auto policy documents, some of these parts will be combined. But they'll all be there. Here's what each section means to you, the insured:

Declarations:
This section will likely be the first thing in your auto insurance policy, and it's almost always its own section. Unlike the rest of your policy, it will have been prepared especially for you.

The declarations lists all relevant information about your personal auto policy. This includes:

* the year, make,and model of your car
* its VIN (vehicle identification number)
* the name of the insured (you or you and your spouse)
* the dates the policy is effective
* the policy's coverage types and limits
* the policy's cost (your premium)

Sometimes other information is included (like whether you use the vehicle for business or for pleasure). And if your car is financed, the lender who holds the lien on the vehicle will be listed here as the "loss payee". (If the car is "totalled", they'll need to be reimbursed.)

Insuring Agreement:
This section is the centerpiece of the personal auto policy. It outlines exactly what the insurance company promises to provide in return for the payment of your premium.

The type and extent of each coverage you've purchased will be described in detail here. This section will also outline exactly who is covered under each provision. It's a long and complicated section, but it's probably the most important part of your auto insurance policy.

Definitions:
Want to guess what this section's all about? Yep. All annoying insurance jargon will be clarified here.

Sometimes this section is simply written into the insuring agreement. But in either case, you can be sure that every relevant term will be narrowly defined, so as to cut down on the possibility of a misunderstanding between the you and the insurance company.

Exclusions:
This is an important section, because it lets you know what, when and who won't be covered by your policy. The insurance policy exclusions section is really just a list of all possible circumstances that would free the insurer from the responsibility of paying a claim.

An example: most auto insurance contain an exclusion that exempts the insurer from having to pay in the case of intentionally caused damage or injury. (We hope that never happens!) Make sure you understand the exclusions, because you don't want to be caught relying on some kind of coverage that you don't actually have.

Conditions:
This will become a very important section should you ever be involved in an accident. It lists your duties and responsibilities as the insured in the event of a claim situation.

This part of an auto insurance policy usually includes guidelines for contacting the insurance company, obtaining a police report, and filing a claim. Information on auto insurance policy cancellation will be outlined here, too
Author: Marvin

Get free insurance quotes here!