Many drivers believe that their auto insurance covers them in the event of just about any serious problem that arises, and that just isn’t the case. Whether you’re traveling abroad, or you’re just motoring around in a rental car, if you get into an accident without collision coverage, you may not get the results you may have been expecting.
Liability versus Collision
There’s a significant difference between liability and collision coverages. Liability only covers the other vehicles, people or property that you damage in your accident; it does not cover you or your vehicle. On the other hand, collision will cover your vehicle as well as any of the injuries that you sustain during the accident. That’s why it’s important to consider strongly whether you want to add collision onto your insurance policy or not. This additional coverage is often mandatory if you have a loan out on the vehicle. Be careful to look over the limits that are covered by the policy overall.
How Traveling Works with Car Insurance
If you travel outside your current state, you don’t have to worry about paying for additional car insurance. Most insurance companies will continue to cover you even when you leave the borders of your home state. Heck, many will even cover you when you cross over into Canada. Not only will you still be covered, but most insurance companies will step up your coverage if you get into an accident in a state that has higher minimum liability coverage limits than what your current state requires. That means you don’t have anything to be afraid of while driving out of state, as long as you have liability insurance.
Consider Rental Car Insurance
It’s important to look at whether or not your current insurance company covers rental cars if you are out in a rental and you cause an accident. Most rental companies will try to sell you additional rental insurance, and sometimes it’s a good deal, while at other times it is simply a waste of your money. Many insurance policies today will cover your rental car while you are your spouse is behind the wheel. Sometimes even your credit card company will cover you if you paid for the rental with their card. That’s important to realize and can save you some serious money. In any case, you need to make sure that’s the case by looking at your policy closely.
International Car Insurance
While you are covered when traveling through any of the 50 states, and likely in Canada as well, things get a bit trickier when you head into the many other countries around the world. Depending on the current insurance company that you have and where you are going, you may or may not need to purchase additional auto insurance. Before you head out on your trip, make sure that your current policy covers you in the country that you’re going to if you plan on driving. If you are not covered, you should take the time to find an International insurance policy before heading over for your trip. Make sure that your coverage is active by the time that you reach the country, and you’ll be good to drive around safely.
If you get into an accident while traveling, having the right insurance is crucial. While it might not cost you a dime to be covered, reading your policy benefits and restrictions can save you headaches, hassles, and unnecessary expense. You don't want the memory of your vacation to be that of an expensive accident.