If you are a tourist considering buying a car while in the US, you can do so and even insure it, but the process is not as easy as it is for a citizen.
Why would you even want to buy a car while abroad? A person who wants to visit the United States for an extended trip may be interested in buying an inexpensive vehicle to use while they are in the country and then selling it before they go home. This is an option, but they also have other ways to arrange transportation while in the United States that may not be as pricey as trying to arrange for car insurance without a U.S. driver’s license.
Take a look at the options, hurdles and solutions below and then enter a US zip code in above for your free car insurance comparison!
Buying a Car in the United States
A dealer in the U.S. will likely sell a vehicle to a person who is visiting the country. The tourist also has the option of buying a vehicle from a private seller. If the transaction is made through a private seller, the purchaser will need to make sure that they see valid ownership papers for the vehicle.
For the sale to be a legal one, both parties are required to go to the local office of the state motor vehicle bureau. They must sign documents to affirm the sale and register the new ownership of the vehicle. The buyer will be required to pay a registration fee, as well as sales tax owing on the purchase. At this point, the buyer can purchase plates for the vehicle.
Once the documents have been signed, the new owner is required to keep a copy of the vehicle registration and proof of insurance in the vehicle at all times.
Insurance for Foreign Car Buyers
While buying a car in the United States without a U.S. driver’s license is relatively easy, getting insurance coverage can be challenging. In many cases, an insurance company requires a state-issued driver’s license before it will issue an insurance policy. Some companies will simply refuse to issue a policy to non-resident drivers, and the ones who are willing to provide this type of coverage may charge higher rates than they would offer to U.S. residents.
In most parts of the United States, car owners are required to have bodily injury liability coverage in place. This protects the occupants in the other vehicle if a car accident occurs. The insurance pays for the cost of medical bills, funeral expenses, lost wages and other expenses incurred by those injured in the accident. Any expenses above the policy limit (less the deductible) must be paid for by the car owner personally.
Driving without insurance, whether an accident occurs or not, is a criminal offense. The penalty for doing so varies from state to state, and may include a fine or having the vehicle seized.
Insurance companies want car owners to have a valid address in the United States before issuing an insurance policy. The insurance needs to be issued before the car can be legally registered. A person who is considering a lengthy stay in the U.S. and wants to buy a car should do his or her homework before arriving in the country and then finding out that she or she is unable to arrange insurance coverage.
Shopping For Car Insurance
Fortunately for people who want to buy a car for their use while visiting the United States, they can start looking for car insurance coverage before they arrive. The Internet makes it easy to research insurance companies and shop for coverage online. The best way to proceed is to start looking at insurance options well in advance of the departure date. The visitor can confirm that a U.S.-based insurance company is willing to extend coverage and how much it will cost.
It’s a good idea to start with the basics when looking for insurance coverage for visitors to the United States. The visitor will want to check with various insurance companies to see whether they offer this type of coverage first. Then the visitor will need to have an idea about the make and model of vehicle they will be buying so that they can get a quote for coverage. The insurance company may need to ask a series of questions to learn more about the tourist and his or her plans before making a decision about whether to extend coverage, but the first step in the process is to find an insurer offering this type of policy.
Are you a tourist who wants to purchase a car in the U.S. and buy insurance for it while you will be visiting the country? You can start your search for a company willing to cover you by clicking on the free insurance quote tool at the top of the page!
