What Car Insurance Do I Need While Traveling Abroad?

Last Updated on December 31, 2025

If you’re traveling abroad and planning to rent a car, don’t assume your U.S. auto policy (or your credit card) automatically covers everything. Coverage rules depend on where you’re driving, what you’re renting, and which insurance options you choose at the rental counter.

This guide explains where U.S. car insurance typically applies, what coverage you may need for an international rental, how credit card rental coverage really works, and when you might need an International Driving Permit (IDP).

Key Takeaways

• Most U.S. auto policies have a “coverage territory” and typically won’t cover rental cars in most countries outside the U.S. and Canada—so you may need local rental insurance abroad.
• For international rentals, focus on two essentials: (1) liability coverage that meets local requirements and (2) damage/theft protection for the rental vehicle (CDW/LDW, credit card coverage, or a third-party policy).
• Credit card rental coverage usually helps with damage/theft to the rental car, but it often does not provide liability coverage and may be primary or secondary with strict rules and exclusions.
• Some destinations require an International Driving Permit (IDP) to rent or drive legally, so confirm IDP rules before your trip.

Does My U.S. Car Insurance Cover Me Abroad?

Most U.S. auto insurance policies are limited by a coverage territory (the geographic area where the policy applies). In many standard policies, that territory includes the United States (often including U.S. territories/possessions and Puerto Rico) and Canada—but not most international destinations.

If you’re planning a road trip, start by checking your policy’s territory rules for Canada and Mexico:

• Canada: many U.S. insurers extend coverage, but you should still confirm before you go: If I drive to Canada, will my insurance cover me?
• Mexico: U.S. coverage often doesn’t satisfy Mexican requirements—many drivers need a separate Mexico policy: If I drive into Mexico, does my insurance cover me?

For most other countries, your U.S. policy typically won’t extend to a rental car abroad. That means you’ll usually need to rely on insurance provided by the rental company, your credit card benefits, a third-party policy, or a combination of these.

If you’re unsure how your policy treats rentals in general, see: Does my auto insurance policy cover rental cars?

What Insurance Do I Need for an International Rental Car?

When you rent a car abroad, there are two big buckets to think about:

• Liability coverage (injuries or property damage you cause to others)
• Damage/theft coverage for the rental vehicle (collision damage, vandalism, theft, glass, etc.)

You may also see optional add-ons like personal accident insurance (PAI), personal effects coverage, and roadside assistance. Whether you need these depends on what’s already included with the rental and what other policies you have.

Your Main Options for Coverage Abroad

Option 1: Buy Coverage Through the Rental Company

In many countries, rentals come with at least some required liability coverage built into the price. But the limits may be low, and you may still be offered upgrades at the counter.

For damage to the rental vehicle, rental companies commonly sell protection as a waiver (not always “insurance” in the traditional sense), such as a collision damage waiver (CDW) or loss damage waiver (LDW). These may reduce what you owe if the rental car is damaged or stolen, but they often come with exclusions and an “excess” (similar to a deductible).

Before you buy at the counter, verify:

• What liability limits are included (and whether you can increase them)
• Whether CDW/LDW is included already (and what the excess is)
• Whether your destination has common exclusions (off-road driving, certain roads, leaving keys in the car, etc.)
• Whether buying their CDW/LDW affects any coverage you planned to use through a credit card

Option 2: Use Rental Coverage Through Your Credit Card

Many credit cards offer rental car protection, but it’s usually focused on damage/theft to the rental car (often called a collision damage waiver benefit). It typically does not replace liability insurance in a foreign country.

Also, credit card rental coverage can be primary or secondary coverage, and it can come with strict requirements (paying with the card, being the primary renter, declining certain waivers, rental length limits, vehicle type exclusions, and country exclusions).

If you plan to rely on a credit card benefit, check your card’s “Guide to Benefits” and review issuer-specific details before your trip:

• American Express rental car insurance
• Discover rental car insurance
• Visa rental car insurance coverage
• Chase Sapphire rental car insurance

Practical tip: If your card covers collision/theft but not liability (common), you may still want the rental company’s liability coverage (or a supplemental liability option) depending on what’s included in the base rental price.

Option 3: Buy a Third-Party Policy for the Trip

Depending on where you’re traveling and how long you’re renting, you may be able to purchase a third-party rental policy that covers rental car damage/theft and sometimes additional liability. This can be useful when:

• You don’t want to use your credit card’s rental benefit (or your card excludes the destination)
• You want broader coverage than what the rental company includes
• You’d rather avoid a large “excess” amount on CDW/LDW

Always compare what’s included, what’s excluded, and whether claims are handled as reimbursement (you pay first, then get paid back) or direct billing.

Option 4: Consider Whether a Personal Umbrella Policy Helps

If you have a personal umbrella insurance policy, it may provide extra liability protection beyond underlying policies. However, umbrella rules vary a lot, and many umbrellas require valid underlying auto or local liability coverage before they pay. Call your insurer and ask specifically whether your umbrella extends to international rental car liability and what underlying coverage they require.

You May Need an International Driving Permit (IDP)

Some countries require an International Driving Permit (IDP) to drive legally or to rent a car. An IDP is not a driver’s license—it’s an official translation of your U.S. license that you carry with your valid license.

If you’re not sure whether you need one (or how it affects rentals/insurance), start here: International driver’s license insurance.

Many drivers obtain an IDP through AAA. If you’re weighing AAA for more than just the IDP (like roadside assistance for U.S. travel), see: Is a AAA membership worth it?

International Rental Car Insurance Checklist

Before your trip, use this quick checklist to avoid surprises:

• Confirm territory: Ask your insurer where your policy applies (U.S., territories, Canada, Mexico, etc.).
• Confirm rental coverage rules: Verify what your insurer covers for rentals (and what they don’t).
• Decide on liability: Make sure you’ll have valid liability coverage that meets local requirements.
• Decide on damage/theft: Compare the rental company’s CDW/LDW vs. your credit card benefit vs. a third-party plan.
• Read the fine print: Watch for exclusions, “excess” amounts, restricted roads, and coverage that becomes void if you violate the rental agreement.
• Check IDP requirements: If your destination requires an IDP, get it before you leave.
• Document the vehicle: Take photos/video at pickup and drop-off (including windshield, wheels, and existing scratches).

Buying Overseas Auto Insurance for Long Stays or Special Situations

If you’re living abroad, staying long-term, or driving more than a typical short vacation rental, you may need an overseas policy designed for expats, military personnel, or extended international use. Some U.S.-based companies also have international/overseas programs—see: GEICO rental car insurance.

For most travelers renting for a week or two, the simplest route is usually a combination of (1) local liability coverage that meets requirements and (2) a clear plan for rental car damage/theft coverage (rental company, credit card, or third-party).

FAQs on Car Insurance When Traveling Abroad

Final Word: Don’t Guess—Confirm Your Coverage Before You Go

International rentals are one of the easiest places to get stuck with unexpected costs. The safest approach is to confirm your coverage territory, verify what the rental includes, and choose liability + damage protection that actually applies in your destination.

A quick call to your insurer and a quick read of your credit card’s rental benefits guide can save you a lot of stress (and money) at the rental counter.