Did you know that your current auto insurance policy might not cover your auto while you are driving in most countries around the world? In fact, the majority of basic auto insurance policies written in the U.S. may only cover you if you are driving in neighboring countries such as Mexico and Canada, and countries south of Mexico. If you are driving your vehicle anywhere else in the world, you will need to purchase an overseas auto insurance policy.Overseas auto insurance is a special type of insurance that covers your auto while you are traveling outside of the United States (either short or long-term or if you are actually living outside of the United States), whether the reason for the move is due to a work transfer, military, or personal.The different types of international auto insurance policies available typically include liability, comprehensive, and collision coverage. There are two types of liability insurance: bodily injury liability and property damage liability. If you are involved in an auto accident and it is determined that the accident is your fault, bodily injury liability insurance protects you if the other party is injured or killed. Property damage liability insurance covers any damages to your automobile and someone else's vehicle or damages to something on someone else's property such as a mailbox, fence, or even landscaping.Collision auto insurance covers the cost of damages to your vehicle or replacing your vehicle, regardless of who is at fault. Comprehensive auto insurance covers losses to the vehicle resulting from fire, theft, vandalism, earthquake, flood, hail, riot, explosion, or any other forces beyond your control. It also covers losses resulting from falling objects and glass breakage.While auto insurance policies typically vary from country to country, it is important to keep in mind that some international auto insurance companies/policies do not cover vehicles that will be used specifically for business overseas and some may not cover rental cars if the rental is not being used while your insured auto is being repaired. When selecting an international auto insurance policy, always make sure that you are clear on what’s included and what is not.
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