Car Insurance For Foreign Drivers in the USA

Yes, foreigners can get car insurance in the United States, but the process differs from what U.S. citizens experience. Anyone driving in the U.S. must have car insurance, except in New Hampshire and Virginia where it's optional (though still recommended).

Key Points for International Drivers:

• Long-term residents: Need to purchase a policy from a US insurance company
• Short-term visitors: Can often get coverage through rental car companies
• Student visa holders: Eligible for regular policies with potential student discounts
• Work visa holders: Can get standard coverage with proper documentation

The main challenge isn't eligibility—it's finding insurers that work with foreign licenses and understand international drivers' needs.

Foreign drivers can get car insurance in the U.S., even without a local license, but it requires more documentation than standard applications. Here's what you need to know.

International students encounter unique challenges when getting car insurance in the United States, whether they’re on an F-1, J-1 or another type of student visa. 

You'll need your valid passport and current student visa, along with your I-20 (F-1 visa) or DS-2019 (J-1 visa) forms. 

Your international driver's license or home country license works for most insurers, though some states require an International Driving Permit. You'll also need school enrollment verification and U.S. address documentation, whether it's a dorm assignment or off-campus lease.

International students often qualify for major insurance discounts that can help balance the higher premiums foreign drivers usually pay. Good student discounts offer up to 25% off for maintaining a 3.0+ GPA. Defensive driving course completion provides additional 5 to 15% discounts, and bundling with renters insurance creates even more savings opportunities.

If you're only visiting the United States for a short time, you can buy insurance from your car rental company. Rental companies offer three main components: liability insurance, a collision damage waiver and personal accident insurance.

Coverage limits for each component may vary depending on the rental company and your personal preference. Insurance coverage from a rental company may cost up to $50 per day, depending on how much coverage you purchase.

Most visitors from Canada who are driving their own car are covered by their own insurance company. However, drivers from Mexico need to purchase additional coverage.

Foreign drivers staying long-term in the U.S. can find the most affordable auto insurance in Virginia and Idaho.

The best and cheapest car insurance companies nationally may not be the same as the best companies in your state. Insurance is regulated at the state level, and insurance companies may offer different service levels across state lines. Rates from the same insurance company can vary from state to state.

For example, Progressive offers the cheapest car insurance in California. But that doesn't mean Progressive is the most inexpensive in every state. The cheapest car insurance also varies depending on your driver profile, which is influenced by your age, gender and driving history. Before purchasing an insurance policy, compare rates from multiple providers to get the best deal.

State Farm offers the most affordable car insurance for international drivers at $93 per month for a full coverage policy. 

The company explicitly offers insurance policies to drivers with international licenses, while Progressive and Farmers both allow applicants to provide information from international driver's licenses during the application process, indicating openness to offering coverage to drivers with a license from abroad.

Finding the right car insurance as an international driver requires working with companies that explicitly accept foreign licenses and understand the unique needs of non-U.S. citizens. 

Based on our analysis of rates, acceptance policies and customer service, State Farm, Farmers and Progressive are the best and most affordable on average in each state and in the nation's capital.

Comparing rates from multiple providers is key to finding affordable car insurance as an international driver in the US. Visa status and international driving history affect premiums, but State Farm, Progressive and Farmers offer the most budget-friendly insurance options for non-citizens.

Navigating car insurance as a foreign driver in the U.S. can be challenging, but it's essential for legal and financial protection. These frequently asked questions address coverage options, eligibility and tips for securing affordable insurance.

Study Overview

For foreign drivers, one common challenge is finding U.S. insurers that accept international licenses while providing competitive rates. We designed this study to identify which companies actually work with international drivers and what coverage costs across different states and visa situations.

Data Sources and Depth

We gathered 83,056 quotes from 46 insurance companies across 473 ZIP codes to find the most affordable options for drivers with foreign licenses. Our data comes from Quadrant Information Services and state departments of insurance, focusing on companies that explicitly accept international documentation.

Driver Profile

Our research used a 40-year-old driver with a clean record, driving a Toyota Camry LE approximately 12,000 miles annually. 

We selected this profile because it represents a common scenario for international workers and long-term visa holders in the U.S. Since foreign drivers can't leverage U.S. credit history or driving records initially, this baseline helps isolate how companies price policies for international applicants.

We calculated rates across all 50 states plus Washington, D.C., adjusting for each location's minimum coverage requirements and typical international driver circumstances.

Coverage Levels and Deductibles Explained

Before your insurance provider reimburses your claim, you need to pay your deductible out of pocket. On average, comprehensive and collision coverage, commonly referred to as “full coverage” insurance, has the most extensive financial protection.

When it comes to auto insurance, 100/300/100 refers to:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $100,000 property damage liability

Meanwhile, 50/100/50 stands for:

• $50,000 bodily injury liability per person
• $100,000 bodily injury liability per accident
• $50,000 property damage liability

Minimum coverage meets each state's legal requirements, including mandatory liability limits and any required coverages like personal injury protection or uninsured motorist coverage. These rates reflect the minimum cost to drive legally, but most financial advisors suggest higher limits for international drivers who might deal with language barriers or legal issues following an accident.

Your deductible is what you pay out-of-pocket before insurance covers the rest after a claim. Comprehensive coverage protects against theft, vandalism and weather damage, while collision coverage pays for accident repairs regardless of fault.

Learn more about MoneyGeek's methodology.