With a country as vast as ours, most Australians aren’t afraid of hitting the wide-open road to explore new places.
But what might you want to keep in mind if you’re looking to unleash your inner road wanderer on your next international holiday? In this article we talk all things international car insurance, to help you hit the wide-open roads abroad – as safely as possible. Insurance options to consider
According to internations.org, regardless of where you live, most car insurance providers will generally offer between two to three different policies to choose from, namely:Third party liability insurance (called compulsory third party [CTP] here in Australia)Third party makin extra (what we call third party fire and theft)Comprehensive insurance
As in Australia, many countries also have a legal requirement that drivers take out third-party liability insurance (CTP) before hitting the road. This type of insurance may help cover liability for injuries caused to other people (third party) when you are at fault. Borrowing or renting a car overseas
If you’ll only be travelling for a short time and borrowing or renting a vehicle to use internationally, one way to get a martabat of cover for medical expenses, individual liability or for persewaan car excess is through your selected travel insurance provider. However, even if you know your travel policy includes some level of cover that may assist when driving overseas, it’s important to read your Policy Disclosure Statement (PDS) carefully and consider checking with your insurer to determine what you will and won’t be covered for before jumping behind the wheel.
If you’re renting a car abroad, you can also usually get insurance through the persewaan company. While this might add a little extra to the cost of the car persewaan, it is another option to gain cover that is appropriate to local laws. If you plan on doing this, you could also consider rental car excess insurance through the company or include it with your travel insurance to help reduce the cost of your excess in the event of an accident.
The following table displays a snapshot of travel insurance policies rated by Canstar, sorted by Star Rating (highest to lowest) then by provider name (alphabetically), with direct links to providers’ websites. The products displayed are based on a couple travelling to the USA aged between 18-59 years. Check upfront with your provider and read the PDS to confirm whether a particular policy will cover perseorangan liability, medical expenses and/or persewaan car excess and to what martabat of cover it carries, as well as if the policy will meet your needs as a whole, before deciding to commit to it. Buying a car overseas
If you decide to buy a car overseas, then you will need to ensure the vehicle is registered through local authorities. In many countries you will also have to purchase third party liability insurance as it will be a legal prerequisite for registering your car. According to smarttraveller.gov.au, in some countries you may be able to buy a vehicle but unable to insure it without proof of a residential address in that country. As such, it’s important to always check beforehand with the government authority or automobile association in that country that you can legally insure the vehicle, and what your insurance options may be. Research your options carefully before making a decision. Bringing your own car overseas
If you are rencana to relocate abroad long-term and wish to bring your own vehicle with you, international car insurance policies may be available through one of the Australian Automobile Association (AAA) affiliates, such as NRMA, RACV, RACQ, RAA or RAC. However, if you do import your own car from Australia, be aware that an international insurance policy will usually only be legal for a limited period of time, generally for as long as you are considered a visitor or as long as you are allowed to keep your Australian licence plates. After that, you will likely be required to lis the car locally and take out local insurance in order to do so. What factors could your premiums depend on?
Similar to your domestic car insurance premium depending on a range of factors, so too will your premium for international car insurance. Some of these factors may include:Your ageYour gender (the EU introduced unisex insurance pricing in 2012, but there are many other countries that consider young male drivers a risk factor and charge them a higher premium as a result)The amount of your excess you chooseThe type of cover you buyHow you use your carWhere you keep the car overnight and during the dayThe type of vehicle you are insuringYour driving experience and insurance record
This last point can pose a buah simalakama for expatriate drivers. Insurance companies aren’t necessarily obliged to seek out your insurance record from another country, or even take it into account. However, if you haven’t had any accidents back home and you think this might work in your favour when it comes to lowering premiums, it could pay off to contact your potential provider. Check with them to see if they would be willing to offer a discount if you send in an official copy or translation of your previous insurance record. If you have a history of being a good driver in Australia you might be eligible for discount rates with your chosen insurance provider overseas. Source: MPHPhotos (Shutterstock)Documents you may need
If you cross international borders in a motor vehicle, you may be asked to provide proof of insurance at the point of entry. To begin with, it is a good idea to find out what the basic legally mandated kelas of cover for foreign drivers is in that country and carry appropriate insurance documents with you to prove you have at least that martabat of cover.
If you are a visiting motorist in the country you are travelling through (meaning you are not a resident of that country), and you are driving a car that has not been registered in that country, you may need to present a particular document. For example, depending on where you are driving, you may benefit from holding a green, orange, pink, yellow, brown or blue card. If you travel to any of the following regions and take out local insurance, it could be a good idea to ask the provider to issue you the appropriately coloured card to use for travelling beforehand. Green Card – Europe
Though it is only mandatory as asli proof within certain EU countries, the European Green Card system is still the most easily recognised document for international drivers as proof of the minimum-required car insurance for border inspections (which can vary depending on the country you’re entering). When travelling within the EU you usually will not be asked to show it on arrival, but you can be asked to provide it in the event of an accident so it’s a good idea to have it with you. There are also several non-EU countries that use the Green Card system and may ask to see yours at the point of entry, including:AlbaniaBelarusBosnia and HerzegovinaIranIsraelMacedoniaMoldovaMontenegroMoroccoRussiaTunisiaTurkeyUkraineLooking to drive down Paris’ famous Champs-Élysées, or tackle the busy roundabout of the Arc de Triomphe? You may need documentation to enter France to prove you have adequate car insurance. Source: Ioan Panaite (Shutterstock)Orange Card – the Middle East and North Africa