Having your child go away for school is an exciting yet daunting venture. To make getting around easier, you may have decided to provide them with one of your cars, or they might be taking their own. Suppose your child is heading off to college or university across the border. In that case, it’s important to understand the process of insuring student drivers abroad who plan to study in the U.S.
Will Ontario Auto Insurance Cover Students Away at School?
For a limited time. Ontario auto insurance doesn’t account for people living abroad but maintain their Canadian citizenship/residency. However, having an Ontario auto insurance policy means your child still has coverage while traveling anywhere in Canada and the U.S. However, this is only for less than six months. So, your child will need to prove that they’re still a resident of Ontario and therefore qualify for Ontario auto insurance. To do this, the car should be brought back periodically – ideally once every six months. For a student, this can be during their reading weeks or breaks.
If your child won’t be coming back within six months, you may be required to find a new insurance company, such as one that allows more than six months of consecutive travel. Ask your isure broker about which companies offer this. In the end, to insure student drivers abroad in the U.S., a trip home is the simplest way to accomplish this…and see your family!
With most insurance companies, having the car out-of-province for longer than six consecutive months will void the terms of your policy.
Is it more expensive to insure a student while away at school?
Having your child driver on your policy will increase your rates, as insurers will consider their inexperience and driving history (or record, if they’ve had any scrapes or violations.) But when that student takes the car and goes off to school, will their premiums rise as well?
Not usually. That’s because the rates will still be based on the home address. Technically, it doesn’t matter where you drive or where your typical “spots” are, but commute distance/annual mileage can be a factor in pricing. If those change, you may need to ask your broker about the recent shift and how your insurance may be impacted. Read more about other factors that can influence your auto insurance premiums.
If your child decides to pick up a part-time job, like driving for Uber, there will need to be a chat with your isure broker as well as this has altered the usage of the car.
Car Insurance Requirements for Canadians Studying in the U.S.
All drivers in the U.S. need a valid driver’s licence and proof of insurance. Nearly every state requires bodily injury and property damage liability insurance. This pays for other parties’ medical expenses and property damage when you cause an accident.
Most car insurance providers in the U.S. offer the above types of car insurance coverage, as well as the following options:
- Personal injury protection (PIP): This type of insurance pays for your medical expenses after an accident and can reimburse lost wages if you miss work due to your injuries.
- Medical payments (MedPay): MedPay covers your medical bills as well as those of your passengers after an accident.
- Uninsured/underinsured motorist coverage: This type of coverage pays for repairs to your vehicle after an accident with a driver with no (or inadequate) insurance.
If you have an auto loan or lease, you’ll almost certainly need to carry a full-coverage car insurance policy. These policies go beyond minimum coverage to include both collision insurance and comprehensive coverage.
Getting a Driver’s Licence in the U.S.
If your child decides to get their driver’s licence while studying in the U.S. to drive or purchase car insurance in the U.S., they’ll need a state-issued driver’s licence. The specific requirements for getting a licence vary from state to state, so it’s best to verify with your state’s Department of Motor Vehicles (DMV) or ask someone in the student affairs department at their school. Your child will typically need a passport, visa, and proof of residence to secure a driver’s licence.
For proof of legal residency, they can provide:
- A recent utility bill
- A bank statement
- A rental agreement
- National I.D.
Once they’ve provided the required documents, they’ll likely need to take the following steps:
- Written test: This test varies by state and evaluates your knowledge of road rules. You can typically find online resources like study guides from each state’s DMV.
- Driving test: This typically involves making a few types of turns, parking and doing some highway driving. Again, this type of test varies by state but focuses on following basic traffic laws.
- Eye exam: If you need to wear corrective lenses during this exam, it will be noted on your license. You’ll be required to wear glasses or contact lenses when driving.
How Canadian Students Can Save on Car Insurance
As mentioned above, as long as your child returns every six months to maintain their Ontario car insurance, they should not need to purchase any other insurance in the U.S. If, however, your child’s specific circumstance requires buying insurance, your child has a few other options for bringing their auto coverage costs down. Here are a few simple strategies visiting college students can use to save money on an auto insurance policy:
- Consider local options: The biggest auto insurers may not be the best options for everyone. International students might find better rates with a small local company. Personal service from a local insurance agent is another advantage of going small.
- Look for discounts: Most providers offer a wide range of car insurance discounts that can help cut premium costs.
Students with good grades are often eligible for reduced auto insurance rates. Safe driver discounts are also common, although they sometimes take several years to earn.
- Increase your deductible: A higher deductible brings with it lower premiums. College students just need to remember that raising their deductible also means they’re responsible for more out-of-pocket costs if an accident occurs.
- Take a driver safety course: Especially for international students without much driving experience, taking a defensive driving course can be an ideal way to unlock savings on regular car insurance payments. This is a great tip for insuring student drivers abroad!
FAQS for insuring student drivers abroad in the U.S.
Will my Canadian auto policy cover me while I’m in the United States?
Yes – Canada and the USA have a reciprocal agreement that allows drivers from both countries to use their auto insurance while traveling across the border.
Should I get any additional insurance coverage to drive in the USA?
In most provinces in Canada, it’s mandatory to have a minimum of $200,000 in third-party liability coverage. This will protect you if you’re found at fault for an accident that injures someone or damages their property. If the state your child is staying in has a minimum requirement that’s higher than what you currently have on your policy, then you may need to upgrade your coverage limit to ensure you’re adequately protected.
Insurers typically recommend $1-$2 million in third-party liability coverage. But be sure to check the specific requirements of the state you’re traveling to.
Is it possible to purchase car insurance with an international driver’s license?
As long as you have a valid licence to drive in the United States, you can purchase car insurance. And your child won’t necessarily need to have a license issued in the U.S. Depending on where you’re from and which states you’ll be driving in; you may be able to use your foreign licence after arriving in the United States. Otherwise, you can apply for an International Driving Permit (IDP).
If you have a driver’s licence, you can apply for an International Driving Permit or International Driver Document to drive in another country for leisure purposes. The IDP is proof that you possess a valid driver’s licence issued by a competent authority in Canada. It translates your driving qualifications into ten of the world’s most commonly used languages. It allows you to drive in over 150 different countries without having to take tests or submit other applications.
Do international students pay more for car insurance?
In general, international student drivers pay higher car insurance premiums than many other motorists. This is due to many factors, with age being perhaps the most significant. International students typically don’t have much credit history, which is another factor providers use to set rates.
Can I get car insurance on an F-1 visa?
Yes. International students can buy car insurance as long as they have a valid U.S. driver’s licence or international driver’s permit.
Due to their age, lack of credit history and inexperience behind the wheel, your child may have trouble finding affordable car insurance that fits their budget and needs. However, ensuring that your child returns home for a visit every six months will maintain your Ontario auto insurance coverage. If you have questions regarding how to insure student drivers abroad who are studying in the U.S., contact one of our isure representatives today. We’ll be happy to discuss the best types of coverage to keep your child safe while studying across the border.
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