Auto insurance when traveling abroad: what you need to know

Auto insurance when traveling abroad: what you need to know


Renting a car on vacation offers a lot of freedom. However, to choose the auto insurance that meets your needs adequately, you will need to consider several options. How do you make the right insurance choices before you hit the road?

When you drive in Quebec, bodily injury is insured by the public automobile insurance plan of the Société de l'assurance automobile du Québec (SAAQ). Outside of Quebec, you are covered for any injuries you may suffer, but it is your auto insurance that covers civil liability as well as property damage.
Plan for a better ride

Before leaving, the best thing to do is to check the coverage of your auto insurance policy at the same time as that of your travel insurance. If necessary, be prepared to adapt your protection.

There are three main options you can choose to get adequate coverage: personal auto insurance, insurance provided by your credit card, and rental agency insurance.
1. Personal auto insurance

In Quebec, car owners must have a liability insurance policy of at least $ 50,000. This is protection that may well be insufficient if you are driving abroad. In the United States, for example, it is recommended to increase the amount of liability insurance to $ 2 million. That's the equivalent of an additional twenty dollars a year.

When it comes to property damage, the endorsement called FAQ-27 protects the rental vehicle as if it were your own. This clause is included in most comprehensive protection contracts and is valid in Canada and the United States. It is always best to confirm this clause with your insurer and check if the amount of coverage is sufficient for the type of car rented.
2. Credit card

A large selection of credit cards offer auto insurance if you pay for the rental with the card. CAA-Quebec recommends validating the scope and conditions of the protection offered. If you're traveling through multiple countries, for example, you might not be covered everywhere. There may also be constraints in the length of coverage or in the choice of certain vehicle models such as vans, luxury cars or recreational vehicles. Above all, make sure you have "third party liability" protection which is not always offered by default.
3. Rental agency

Insurance offered by the rental company is often more expensive than previous options, and the prepaid plan is more economical than buying locally. Prices are determined according to the vehicle model, location of rental, age of the driver and the number of people who will share the wheel. To avoid paying twice, make sure you aren't already covered for $ 2 million liability and property damage with the FAQ-27 rider.
Know how to protect yourself everywhere

Before departure, take the time to learn about the laws specific to the countries you will be crossing. The Highway Code and road signs are also subject to change. Also contact your insurer to let them know your itinerary and validate your coverage.
United States

In addition to liability insurance of $ 2 million, the SAAQ suggests having collision insurance. When a third party is responsible for an accident, this protection prevents you from having to go to court to obtain compensation.

In the vast majority of states (Georgia is an exception), it is not necessary to have an International Driving Permit (IDP). The class 5 driver's license is normally sufficient to rent a car or a recreational vehicle. However, the minimum age can vary between 21 and 25 years old.
Mexico

Most insurance policies in Quebec do not protect you while traveling to Mexico. If you are renting a car in the United States with the intention of traveling to Mexico, the SAAQ recommends that you notify the landlord. For a vehicle rented on Mexican soil, it is preferable to take out the full coverage offered by the rental company.
Europe

Your personal insurance policy does not apply in Europe and you will need to purchase the rental agency's policy for adequate protection. In Italy, for example, a government-imposed insurance policy is already included in the price of the package. European buy-back plans generally include full coverage.

The international driving license