
It’s summertime and vacation season is upon us! When you travel via car, does your auto insurance travel with you? Does it matter if it’s a car that you own? Or if you rented it? When traveling stateside or abroad, it’s important to understand your auto insurance so you know if you’re covered.
The personal auto policy has a territory – meaning the area that the coverage exists. Most auto policies include coverage in the United States of America, its territories and possessions. Also, Canada and Puerto Rico are typically included, but almost every carrier excludes coverage in Mexico. This means that traveling outside the US and Canada leaves you without auto insurance. Renting a car in Mexico or Jamaica? – No coverage.
Speaking of renting a vehicle, technically, when renting a vehicle for personal use within the area we discussed, your personal auto policy will extend the liability coverage to the rented vehicle. (There are many other factors that come into play as well).
But what if you want to rent a car or moped while on vacation in Jamaica? Or what if you are a Snow Bird that spends time close to the Mexican border? Some insurance companies offer an endorsement you can add to provide liability coverage when in Mexico (but not other countries). If your insurance company is not one that offers the coverage (or you want to rent a vehicle outside of Mexico), it will be important to purchase liability coverage in the country you are visiting if you decide to rent a vehicle. In most cases, this can be purchased directly from the rental car company.
Although your auto insurance travels with you, there are limits to how far it will go.
Protect your legacy. Insure your future.
References: 2018 ISO Personal Auto Policy

