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Why Insurance Is Tricky for International Drivers
Getting car insurance can feel overwhelming for international students in the United States. Most insurers view drivers without a US driving record as riskier, leading to significantly higher premiums.
On top of that, students often need to present additional documents when applying for coverage with a foreign license. Without the right preparation, costs can quickly add up.
Fortunately, comparison platforms like Beem make the process easier by helping international students evaluate multiple policies in one place and find affordable coverage tailored to their needs.
Can International Students Get Car Insurance in the US?
The good news is that most major insurers in the US allow international students and foreign license holders to purchase car insurance. Students don’t have to wait until they obtain a US driver’s license to get on the road legally. However, requirements vary: some insurers ask for a foreign driver’s license and an International Driving Permit (IDP), while others may accept a foreign license independently.
In certain states, insurers also set time limits, requiring students to transition to a US license within a specific period, typically 6–12 months. Because these rules differ, international students should confirm requirements with their insurer before purchasing a policy.
Read related blog: How to Make Money as an International Student in the US
Documents International Students Typically Need
When applying for car insurance in the US, international students are often asked to provide more documentation than domestic students. The following items are most commonly required:
1. Valid foreign driver’s license: This serves as proof of driving eligibility in the US until a state-issued license is obtained, and it is typically the first requirement insurers request.
2. International Driving Permit (IDP): Although not mandatory in every case, this permit translates a foreign license into English, helping insurers validate the driver’s credentials more easily and reliably.
3. Passport and visa information: Insurers may request details such as passport identification and student visa type (F-1, J-1, etc.) to verify legal presence and eligibility for coverage.
4. Proof of US residence: Documents like a signed lease agreement, dorm housing assignment, or recent utility bill showing name and address are required to confirm local residency.
5. Vehicle registration and proof of ownership: If the student purchases a car, insurers need registration documents and ownership records before issuing coverage, ensuring the vehicle is legally titled.
Having these documents ready can streamline the application process and avoid delays. Students should also keep digital and physical copies for easy access.
Read related blog: Car Insurance for International Visitors And Non-US Citizens
Why Insurance Rates Are Higher for International Students
One of the biggest challenges international students face is the higher insurance cost than their domestic peers. Several factors contribute to this pricing difference:
1. No US driving record: Insurers categorize students as high risk without a local driving history since they lack data to evaluate safe driving habits.
2. Age factor: Many international students are under 25, which is already associated with higher accident rates and premium costs.
3. Limited credit history: Credit scores influence insurance pricing in most states. Without an established US credit record, students often pay more.
As a result, international students can expect premiums that are 50%–70% higher than those of US students with similar driving profiles. For example, while a domestic student may pay $2,000 annually for coverage, an international student may face costs closer to $3,500 for comparable protection.
Read related blog: Adjusting Insurance After a Major Life Change
Average Costs for International Students
Insurance costs vary by state, city, and driving profile, but international students should prepare for higher-than-average expenses. Typical ranges include:
- Liability-only coverage: $1,800–$3,000 per year. This is the minimum level of insurance required in most states and is often chosen by students driving older vehicles.
- Full coverage: $3,500–$5,000 per year. This includes liability, collision, and comprehensive coverage, protecting the driver and their vehicle.
These figures can shift significantly depending on whether a student lives in a busy metropolitan area or a small rural town, the type of car being insured, and any prior driving history in the US. Even small details, such as where the vehicle is parked overnight, can influence the final premium.
Read related blog: Financial Planning for International Relocation: Costs, Fees, and Best Timing
Ways International Students Can Lower Insurance Costs
International students often face high car insurance premiums in the US, but there are proven strategies to reduce costs. From choosing the right type of coverage to leveraging discounts and comparison tools, smart decisions can make policies more affordable without sacrificing essential protection.
Choose Liability-Only for Older Cars
Liability-only coverage can keep costs manageable if a student drives an older or low-value car. While it won’t cover damages to the student’s vehicle, it fulfills state legal requirements and is often the most budget-friendly choice. Students with vehicles worth less than $5,000 frequently benefit most from this option.
Enroll in Telematics or Usage-Based Programs
Telematics programs use smartphone apps or in-car devices to track driving behavior, such as braking, acceleration, and mileage. By demonstrating safe habits, international students can earn significant discounts, sometimes reducing premiums by 20% or more. This option also helps build a positive driving profile in the US, which can pay off with lower costs over time.
Ask About Student Discounts
Many insurers offer discounts specifically for students. Common options include good student discounts for maintaining high grades, bundling discounts when combining renters and auto insurance, and reduced rates for completing driver safety courses.
International students should always ask insurers about eligibility, as these savings can increase quickly.
Get a US Driver’s License
Transitioning from a foreign to a US driver’s license can dramatically lower insurance costs. Insurers offer better rates to drivers with state-issued licenses because they provide clearer verification of driving records and eligibility. While the process varies by state, making this switch within the first year of arrival can lead to long-term savings.
Compare Multiple Insurers
Rates for international students can differ widely between insurers, with some companies specializing in coverage for foreign drivers. Comparing multiple quotes is the most effective way to ensure affordability. Beem, for example, helps international students quickly evaluate a range of insurers that cater to new-to-country drivers, ensuring that students can find policies that fit their budget and needs.
Alternatives for Students Who Rarely Drive
Not every international student needs a full car insurance policy. For those who don’t own a car or drive only occasionally, there are alternatives:
1. Non-owner car insurance: This option provides liability coverage for students who borrow or rent cars but don’t own one. It is often less expensive than standard policies.
2. University car-sharing or rental programs: Many colleges offer access to shared vehicles on campus. Students can avoid the cost of ownership and traditional insurance by using these services.
3. Pay-per-mile policies: For low-mileage drivers, usage-based insurance can be far cheaper than traditional coverage, since costs are based on the miles driven each month.
These options are ideal for students who primarily rely on public transportation or campus resources but occasionally need access to a vehicle.
Read related blog: Car Insurance After Moving States: How to Switch Without Gaps
FAQs – Car Insurance for International Students
Can I get insurance with just my foreign license?
Most insurers allow students to purchase car insurance using only a foreign driver’s license. However, some providers may also request an International Driving Permit (IDP) to help verify driving credentials more clearly.
Do I need an International Driving Permit in the US?
Not always. An IDP is recommended since it translates your foreign license, but many insurers and states will accept a valid foreign license alone.
How long can I use a foreign license before switching to a US license?
The timeline depends on state laws, but most states allow international students to drive with a foreign license for six to twelve months. After this period, transitioning to a state-issued US license becomes necessary.
Are international students eligible for car insurance discounts?
International students can often qualify for discounts such as good student savings, safe driver reductions, or multi-policy bundles. Asking insurers about available discount programs is the best way to maximize potential savings.
Can I get non-owner insurance if I don’t own a car?
Non-owner car insurance is available and protects liability when renting or borrowing vehicles. It’s often a practical, affordable solution for students who don’t own cars but occasionally need coverage.
Conclusion – Driving in the US With Confidence
For international students, navigating US car insurance can be challenging, with higher premiums and added documentation requirements. Still, with the right preparation, costs can be managed effectively.
Choosing liability-only coverage for older cars, taking advantage of telematics, applying for student discounts, and transitioning to a US driver’s license can all make policies more affordable. Above all, comparing multiple insurers is the most reliable way to secure a cost-effective policy.
Beem simplifies this process by helping international drivers evaluate quotes quickly and select the coverage that best fits their needs. Download the app now! With the right strategy, international students can enter the US confidently.
