Expatriate International Auto Insurance
Automobile primary liability (also known as third party liability) insurance is generally a required purchased in the country in which you are located. Local governments will require this in order to register your vehicle. Be aware that limits of coverage can be very low in some countries. If you are uncomfortable with the level of coverage available with third party coverage, you may wish to obtain comprehensive motor insurance. This type of plan can increase coverage to an appropriate level of protection.
Be aware when shopping for third party liability insurance that rates may vary drastically. Do not assume that the premium quote you receive is the standard within that country. Shopping for competitive rates is as essential abroad as it is in the United States or Europe.
It is very difficult to transfer auto insurance from country to country. No claims discount (NCD) or no claims bonus (NCB) may be transferred, however, and offer substantial discounts for expatriates worldwide.
The main types of auto (or motor) insurance available internationally are:
- Third Party Coverage - This will provide coverage for an individuals liability at law to any third parties who have died or been injured, or any damaged to property resulting from an accident.
- Third Party Fire and Theft Coverage - Comprising the scope of cover described above with the addition of property insurance on the vehicle but only in terms of a loss resulting from fire or theft.
- Comprehensive Coverage - This is the insurance with the widest scope of cover. It includes both Third party, Fire, and Theft coverage with the addition of "all risks" insurance. Typically the premiums for Comprehensive Vehicle Cover are the highest on the market.
Different countries will have different requirements in regards to the minimum amount of coverage that an individual must have. These requirements are usually set forth by the country's Insurance Authority or Regulator. In nations that where previously British Colonies it is usually the case that every vehicle should be covered under a basic Third Party Liability Plan or ACT policy. ACT Insurance refers to the British Road Traffic Act of 1930, which laid out the basic requirements for motor insurance at that time. ACT insurance will only cover the insured for any death or injury resulting from an accident.
If you are unfamiliar with the laws regarding motor insurance in the country that you have relocated to you should talk to an insurance professional (either a real estate broker or agent) for more information.
Read more about this topic: Expatriate Insurance
Famous quotes containing the word insurance:
“... business training in early life should not be regarded solely as insurance against destitution in the case of an emergency. For from business experience women can gain, too, knowledge of the world and of human beings, which should be of immeasurable value to their marriage careers. Self-discipline, co-operation, adaptability, efficiency, economic management,—if she learns these in her business life she is liable for many less heartbreaks and disappointments in her married life.”
—Hortense Odlum (1892–?)