Do You Need Auto Insurance as a Foreigner in the U.S.?

Foreign drivers in the U.S. must adhere to the same auto insurance laws as U.S. citizens. This is because your driving history in another country doesn’t apply in the U.S., so a foreign driver is treated just like a brand-new American driver would be. Keep in mind that car insurance requirements vary from state to state.

Here are four scenarios where you should explore U.S. auto insurance as a driver:

• You’re visiting the U.S. on a business trip.
• You’re visiting the U.S. as a tourist.
• You’re attending school in the U.S.
• You’re living in the U.S., even temporarily.

To buy car insurance as a foreign driver, you’ll need a valid driver’s license from your home country or, depending on your home country’s requirements, you might need to apply for an international driving permit (IDP).

How to Get Auto Insurance with a Foreign Driver’s License

If you have a foreign driver’s license and plan on staying in the U.S. for a long period of time, follow these steps for getting U.S. auto insurance:

1. Figure out whether you can use your foreign driver’s license. It may allow you to buy car insurance, or you may need to apply for an IDP. You usually can drive in the U.S. with a foreign license for three months or an IDP for one year.
2. Search for insurance companies that offer coverage to non-U.S. drivers. Some insurers sell policies only to U.S. drivers.
3. Look into what type of coverage you need depending on your driving status. If you have a foreign driver’s license, you’ll need coverage that lasts up to three months. If you have an IDP, you’ll need a one-year policy. If you plan to be in the U.S. for more than one year, you may need to obtain a U.S. driver’s license.
4. Determine what types of coverage you need in the state where you’re living. Coverage requirements differ from one state to another. Nearly every state requires at least a minimum amount of liability coverage, though.
5. Shop for coverage. Once you’ve settled on your coverage needs, compare quotes from at least three insurers. Because an insurer considers a foreign driver a “new driver,” expect to initially pay a higher rate—even if you’ve been a longtime license holder in your home country.

How Long Can You Use a Foreign License in the U.S.?

If you’re planning a long-term move to the U.S., you can drive with a foreign license for a certain amount of time. This time period differs from state to state. However, you typically can drive with a foreign license for three months or an IDP for one year.

Are you looking to stay in the U.S. for more than a year? If so, you probably must get a U.S. driver’s license to drive legally.

A state-issued driver’s license lets you drive anywhere in the U.S. To obtain one, you’ll need to find out the license requirements for the state where you’re living. Each state has a government agency, often called a department of motor vehicles, that handles driver’s licenses.

In some states, it’s a simple process of bringing your foreign-issued license to a DMV and getting a state-issued license. In other states, you might need to submit a license application and take a driving test.

Keep in mind that you might need to provide certain documents, such as an H-1B visa approval notice, before a state will give a driver’s license to you.

Do I Need an IDP to Drive in the U.S.?

Not every U.S. state requires that a foreign citizen carry an IDP. But if you do have an IDP issued by your home country—proving that you hold a valid driver’s license from that country—you can legally drive in the U.S. for up to one year. An IDP expires one year after it’s been issued.

The U.S. government does not issue IDPs. To get an IDP, contact the motor vehicle department of the country that issued your foreign driver’s license. You may not need to take a driving test to get an IDP.

The Bottom Line

Navigating U.S. car insurance requirements if you have a foreign driver’s license can be trickier than navigating a winding road in the mountains. Just remember that driver’s license requirements vary by state and insurance company, so be sure you understand the rules of the road before getting behind the wheel.

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