International Insurance

I’m traveling to another country and renting a car. What do I need to do with my insurance?! Insurance and questions about different coverages on said insurance seems to be the majority of questions that I get – especially from customers traveling internationally. Do I need to let my insurance company know that I am renting a vehicle internationally? Who do I trust to give me the correct information? Doesn’t my credit card cover me? These are all valid questions and can be quite confusing to the average consumer.

Under most situations, I would say to go ahead and contact your insurance company and ask them what your specific coverages are for renting a vehicle internationally. They may or may not know. Don’t settle for an “I don’t know”. Ask for a manager or someone who can answer your questions. Once you find the answers you seek, you may find that you don’t have coverage for international. At this point, you should ask your insurance company if you can add a “rider” (additional coverage for a short time period) to your policy. This will effectively extend your coverage while you are renting the vehicle internationally. If your insurance will not cover you under any circumstances, read on…

Next step would be to contact all of your credit cards. Alert them that you are going to be traveling and renting a vehicle right away. Ask them what they cover and make sure that applies to the country or countries that you are traveling. In most cases, credit cards will be secondary to your personal insurance. This means that they will only cover AFTER all other insurance coverages are exhausted including ANY other insurances that may apply. If you still can’t get coverage, keep reading…

A few weeks ago, I took a trip to Mexico. Doing all of the due diligence that I’m accustomed to when renting a car, I contacted my insurance company, credit cards, and verified coverages, etc. Upon my arrival to the rental car provider (will remain nameless), I produced all pertinent information to the rental agent. I was at that point informed that I did not have sufficient coverage under Mexico law to be provided with the vehicle. Of course, I was not happy about the prospect of having to purchase insurance because I was under the impression that I was covered (which I was).

Mexico has some interesting laws regarding vehicle accidents. When two persons are involved in an accident, it is the police officer’s responsibility to determine the at-fault party at that time. For instance: If I would have rented that vehicle without purchasing the insurance from the rental car provider, and had been found to be at-fault in an accident, I would have been required to pay for the full amount of the damages on the spot to the other party. If I was unable to do so at that time, I would have to be placed in custody (read: Mexican jail) until I was able to pay in full. This applies to anyone who is NOT a citizen of Mexico.

In summation, make sure that you are covered. If you aren’t covered or if you aren’t sure if you are covered, purchase the insurance from the rental company. While it may not have been budgeted in your trip expenses, an unforeseen accident (or time in jail!) probably isn’t anything that would be planned either!