Auto insurance is a significant cost aspect of driving.  Often times this expense is overlooked when making an automobile purchase.  Premiums vary based on cost risk aspects for insurance coverage;  with factors including vehicle type (performance, replacement value), levels and types of coverage, driver’s experience/risk, and deductible(s).    All 50 US states, the UK, Ireland, and Canada have mandatory minimum auto insurance requirements.  New Zealand has a nationwide no-fault personal injury insurance, administrated by the Accident Compensation Corporation.   Auto Liability in New Zealand is covered by a Motor Vehicle Account; premiums for the same are levied on fuel surcharges and vehicle licensing fees.

Although government mandated coverage may be burdensome to some, comprehensive coverage of all drivers on the road benefits all drivers as a whole

The basic auto insurance products include:

1.  Liability:  Coverage for personal injury and property damage to third parties.

2.  Collision: Coverage for damage for your own vehicle.

3.  Comprehensive:  Coverage for damage/loss of your own vehicle from theft, force majeure (natural), fire, etc.

4.  Uninsured/Underinsured Motorist:  Coverage injury/damages to you, your passengers, and your vehicle, for third party drivers without insurance or insufficient insurance.

5.  Medical:  Coverage for medical costs associated with an accident to you or your passengers.

Most car insurance policies have exclusion for coverage when traveling abroad.  Therefore care should be taken in reviewing your policy carefully.  In most circumstances you should acquire auto insurance specific to the country where you will be driving to ensure full coverage and compliance a given country’s rules and regulations.  With an international auto insurance policy, you can obtain coverage for the specific country where you will be driving. After securing an international policy, drivers should verify with each country’s specific rules, regulations, and insurance regulations before driving.

In most circumstances you can contact your domestic insurance agent/broker for international insurance questions.  Alternatively, some international insurance leaders include: GEICO, AIG, Clements, and Esurance.

Another resource for international car insurance information can be found at the embassies and consulates of the countries you plan on driving in.