Traveling And Car Insurance: How To Prepare For A Road Trip

Your existing car insurance policy protects you while road-tripping in the States, but you may need additional coverage when driving internationally.

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Written by:

Dash Lewis , Writer

Written by: Dash Lewis Content Writer

04/04/2024 01:08 PM

Key Points:

Your existing car insurance coverage will cover you while driving in any of the 50 U.S. states.
A travel insurance plan can add additional protections for trip costs incurred as a result of an accident.
Required coverage minimums and accident costs vary by state, and a comprehensive policy with high coverage limits can provide extra peace of mind while traveling.
If you’re traveling to Mexico, you may need a policy from a Mexico-based car insurance company.

In the years since the pandemic, road travel has been steadily recovering, but it’s taken some time. According to the U.S. Department of Transportation, Americans finally topped pre-pandemic travel rates in 2023. In fact, U.S. motorists clocked more road miles than ever before with an estimated 3.263 trillion miles traveled.

If you’re one of millions of Americans prepping for a road trip this year, it pays to educate yourself about best practices. You’ll want to make sure you have the best car insurance coverage to protect your vehicle during your adventures. Below, we’ll break down how car insurance works when traveling and which coverages you may want to check into before hitting the road.

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How Does Car Insurance Work For Road Trips?

Even if your bags are packed, you’re not ready to go if you haven’t thought about car insurance. While there’s no particular policy intended for road trips, it’s a good idea to ensure you have the right types of coverage in place for extended driving. Below, we’ll look at the types of auto insurance that are particularly relevant for road trips.

Liability Coverage

Before you begin your expedition, inspect your current auto policy to figure out how much liability insurance coverage you have. If you only carry your state’s minimum liability insurance, you may be underinsured. Accidents can be expensive, and liability coverage only takes care of the damages caused to others.

Minimum liability car insurance can quickly run out if you’re at fault for a significant auto accident. When heading out on a road trip, it’s wise to carry at least $100,000 per person and $300,000 per accident for bodily injuries, though higher limits could be even more helpful.

Uninsured Motorist Coverage

Uninsured motorist coverage will pay for your medical bills and lost wages if you’re injured in an accident caused by an uninsured driver. It’s often tied to underinsured motorist coverage, which pays for damages incurred by a driver who doesn’t have an adequate insurance policy.

The Insurance Research Council found that about 14 percent of motorists were uninsured in 2022, adding up to about one in seven drivers. If your trip is upended by an accident caused by an uninsured driver and you don’t have uninsured motorist coverage, you’ll be responsible for covering your expenses.

Collision Coverage

The average American driver could experience multiple auto accidents in their lifetime. If your car is damaged by a crash in the middle of your road trip, collision coverage can shield you from expensive repair and replacement costs.

Comprehensive Coverage

State Farm alone reported over $600 million in auto claims related to hail damage in 2022. If you get caught in bad weather during your road trip, comprehensive car insurance will protect your pocketbook by covering personal property damages. The same goes for issues caused by theft, vandalism, and many other situations that could cause physical damage to your vehicle.

Roadside Assistance

Getting a flat tire in an unfamiliar location or locking your keys in your car far away from home can be stressful. Adding a roadside assistance plan to your existing car insurance policy can go a long way toward ensuring peace of mind on your road trip.

Travel Insurance

Travel protection or insurance is a separate insurance policy that covers financial losses related to accidents and other issues you may encounter while traveling. Think of it as add-on coverage that you can start and stop as needed for your trip. Travel assistance plans typically include trip interruption reimbursement, baggage and personal items coverage, rental car and lodging coverage, plus medical expenses and accidental death coverages.

If You’re Driving Your Vehicle

If you’re traveling in your own car on a long-distance road trip, consider two critical factors regarding your auto insurance coverage: who’s covered and what happens in an accident.

Who Is Covered While Driving The Vehicle?

If you carry an auto insurance policy, other people can drive your vehicle as long as they’re licensed, not under the influence, and not explicitly excluded from your policy. Since auto insurance is meant to protect the vehicle, your auto coverage remains in place even if your friend takes over the wheel.

What Happens If I’m Involved In An Out-of-State Accident?

Each state maintains different minimum requirements for auto insurance. Let’s say your home state only requires policyholders to have $15,000 for bodily injury coverage, but your at-fault accident occurs in a state that mandates at least $50,000.

While you may seem underinsured, your insurance carrier won’t penalize you for carrying the lower coverage limits legally set by the state you live in. In most situations, your insurance carrier should increase policy limits if you’re involved in an out-of-state crash. If you feel like you need more coverage when traveling, you can always contact your insurance agent ahead of your trip to ask about purchasing additional coverage.

If You’re Renting A Car

If you’re hitting the road in a rental vehicle, you’ll need some type of rental car insurance. Fortunately, various options can provide coverage for your adventure.

Insurance Offered By Rental Car Companies

Your personal auto insurance policy may provide protection for rental car damage while you travel, but that’s not guaranteed. Check your policy to find out whether it covers rental cars. Either way, most car rental companies offer options for coverage.

Rental Car Coverage	What It Covers
Collision damage waiver (CDW)	This somewhat mirrors collision insurance by covering damages to a rental car due to an accident.
Loss damage waiver (LDW)	An LDW is the equivalent of comprehensive coverage, helping out against theft, vandalism, or environmental damages. CDWs and LDWs are typically pricey, but they provide extensive protection.
Supplemental liability insurance (SLI)	This is the equivalent of liability auto insurance, so many drivers’ policies will transfer coverage over to car rentals. If your policy doesn’t or if you lack personal car insurance, you should pick up SLI coverage, since liability insurance is required by law.
Personal accident insurance and personal effects coverage	Personal accident insurance covers medical and death benefits after a rental car accident, while personal effects coverage protects belongings stolen from a rental vehicle. These two types of insurance get purchased less often and are rarely, if ever, required.

Alternatives To Rental Car Insurance

There are a couple routes you can take to insure a rental car that don’t include the options above.

Use personal car insurance coverage: In many cases, your full-coverage car insurance policy will extend to collision damage incurred while you’re driving a short-term rental car. If you have collision coverage as part of your existing policy, you might be able to opt out of paying for a CDW from the rental car company.

Leverage credit card benefits: Many major credit card companies offer built-in collision coverage for rental cars. If you use one of these cards to secure the rental, the carrier may cover the CDW at no additional cost. Before counting on this coverage, make sure your credit card actually provides this benefit.

If You’re Leaving The Country

What special considerations should you keep in mind for road trips that cross international borders? That largely depends on whether you’re heading to Canada or to Mexico.

If you’re traveling to Canada: Most American auto policies will cover drivers who cross into Canada. Keep in mind that you may need to provide proof of insurance to border agents.

If you’re traveling to Mexico: Your U.S. car insurance won’t be valid once you cross the border. Uninsured driving in Mexico can lead to steep fines and even jail time, so get Mexico car insurance when you visit the country. The process for purchasing Mexico car insurance tends to be relatively simple, and major providers can easily assist you in purchasing the required coverage.

Tips For Preventing Accidents On Road Trips

According to the National Highway Traffic Safety Administration (NHTSA), traffic accidents accounted for more than 42,000 deaths in the U.S. in 2022. Here are some tips for avoiding accidents on your next road trip.

Don’t Text And Drive

The NHTSA reported that more than 3,300 people were killed due to auto accidents involving distracted drivers in 2022, so put the phone away while you’re driving to help ensure the safety of everyone on your road trip.

Always Stay Alert While Driving

Driver fatigue contributed to over 1,300 deaths in 2021, according to the NHTSA. Always be well-rested before hitting the road, and don’t drive if you’re impaired or too tired.

Inspect Your Vehicle Before And After Your Trip

It’s important to conduct thorough maintenance inspections before, after, and even during your road trip. Paying close attention to your car’s condition will help you identify mechanical problems that could come up while you’re traveling.

Keep Up With Regular Vehicle Maintenance

Keeping up with regularly scheduled vehicle maintenance such as oil changes and tire rotations can lessen the likelihood of unexpected breakdowns and mechanical failures while you’re on the road.

Traveling Car Insurance: Our Take

If you’re traveling in the U.S. and already have liability insurance, your policy will travel with you. However, keep in mind that different states require different minimums of insurance coverage. While many policies will extend to meet minimum requirements as you travel, you’ll want to confirm this with your insurance company before traveling. To ensure you’re well-protected, we recommend purchasing a comprehensive car insurance policy with a minimum of 100,000 per person and 300,000 per accident bodily injury coverage.

If you’re looking for a policy with higher coverage limits and want to explore free quotes, consider the options below. We’ve researched and ranked dozens of insurance companies, rating each on factors like coverage availability, policy rates, customer satisfaction, and coverage options. For traveling, we like State Farm and Progressive.

State Farm: Best Overall Provider

State Farm earned the highest score of any provider we reviewed and our designation as the best provider for most adult drivers. State Farm’s policy rates are affordable and the company has a strong selection of optional coverages and discounts to fit a variety of driver profiles. Based on quotes we received from State Farm, the company is also a great choice for teens and young drivers who need comprehensive coverage while traveling before college or with friends.

Read more in our in-depth State farm insurance review.

Progressive: Best For Usage-Based Insurance

If you’re a safe driver, you can get good discounts through usage-based insurance from Progressive, another of our top-rated insurance companies. However, Progressive stands out in this review because it offers specialized insurance for driving in Mexico. The company partners with MexPro, which helps connect you with a Mexico-based provider, but you can start the quotes process through Progressive’s website. Progressive also offers reasonable rates for high-risk and young drivers.

Read more about the company in our Progressive insurance review.

FAQ: Traveling And Car Insurance

Below, we cover some of the most frequently asked questions about car insurance requirements while traveling:

What car insurance covers all 50 states?

A standard policy typically provides out-of-state car insurance coverage for all traveling vehicles. For this reason, there’s no need for insurance companies to offer multi-state car insurance policies. However, remember that some accidents may max out your liability policy’s limits, so it pays to seek coverage with higher coverage maximums, especially when traveling in the U.S.

Is travel insurance worth it for a road trip?

If you’re looking for ways to boost your peace of mind while on the road, travel insurance can be a good call. If your insurance provider offers it and you qualify, you can typically add this coverage to your existing auto insurance policy.

Do I need additional insurance while on a road trip?

If you already have liability coverage on your vehicle, your policy will follow you as you travel in the U.S. However, minimum insurance requirements vary by state, and some accidents can surpass the limits of liability policies. We recommend investing in a full-coverage insurance policy with high coverage maximums for the best protection for your vehicle and its passengers as your travel.

Can you insure cars in different states?

No, your car must be insured in the same state in which it’s registered. Because insurance policies travel with your vehicle, you should be covered by your existing policy if you’re involved in an accident in another state. If you have questions about your coverage maximums, contact your provider or check your contract for more information.

Does my car insurance work internationally?

No, most U.S. auto insurance policies don’t cover you while driving abroad. In some situations, your policy may provide coverage for driving in Canada or Mexico. If you’re planning on traveling abroad and need to rent a car, budget for purchasing rental car insurance directly from the same company as well.

Does my car insurance cover me if I drive a rental?

Your current car insurance policy will typically cover rental cars. In most cases, you’ll have the same coverage limits and deductibles in play while driving a rental as you would your personal vehicle. However, if you don’t have an existing insurance policy, you’ll need to purchase one from the rental car company.

How We Rate Auto Insurers

Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:

Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.

*Data accurate at time of publication.

Dash Lewis Content Writer