Auto Insurance For Newly Licensed Immigrants

Auto Insurance for Newly Licensed U.S. Immigrants

When it comes to bringing their hopes and dreams to America, finding the best auto insurance deal isn't at the top of the "to do" list.

That's understandable given that acclimating to a new country has its own set of priorities, such as finding a new home, a new job, and engaging with a new community and new neighbors.

After you've checked off the big items, getting a good auto insurance policy should be a top priority. It's a ticket to a government-issued license that allows you to drive your vehicle to work, play, and personal obligations and appointments.

Enter the process with your eyes wide open to the unique challenges that immigrants face when purchasing their first auto insurance policies.

"The first issue that a new US immigrant would face in terms of driving would be that his or her previous driver's license would not be recognised in the new country," said Adam Grant, founder of Car Fuel Advisor in Indianapolis, In. "This means he or she will have to pay some expenses to become qualified." Second, the language barrier can make understanding the local public transportation services difficult."

How to Find Car Insurance as a U.S. Immigrant

Where should a new immigrant in the United States begin their search for affordable auto insurance? Ideally, you should understand what it takes to get good auto insurance.

To begin, understand that the average annual cost of car insurance is $1,700. To reduce that amount while still receiving good value, you must first understand the factors that go into any auto insurance rate calculation.

These factors include the immigrant's residence state, the amount of coverage requested, personal driving history, and vehicle make and model.

Once you have a good understanding of the key factors that influence an auto insurance policy, contact your state of residence in the United States to see where you stand as a U.S. driver.

• If you are an immigrant who has completed all of the requirements to become a U.S. citizen, you are automatically eligible for a driver's license.
• If you entered the country illegally, your state of residence may not allow you to obtain a driver's license. You cannot obtain auto insurance if you do not have a valid driver's license, as insurers check to see if an applicant has a valid driver's license. On the plus side, any visitor to the United States with a Green Card (which indicates the visitor is in the country with Uncle Sam's permission) is eligible for a driver's license.

"Some states permit undocumented immigrants to obtain a driver's licence in order to purchase car insurance," said Nick Schrader, an insurance agent with Texas General Insurance. "It is illegal to drive until you have a license and insurance." You can apply for a license just like anyone else. Visit the Department of Motor Vehicles (DMV), complete the education courses, and pass the on-road test."

When applying for auto insurance, you should also provide your exact address. "Also, make certain that your vehicle's title and registration are in accordance with state laws," said Renata Castro, owner of Castro Legal Group in Coral Springs, Fla.

To find out if your state allows undocumented immigrants to obtain drivers licences, visit the National Conference of State Legislators' website, which lists all 50 U.S. states and their policies on immigrants and drivers licences.

How to Get the Best Auto Insurance Policy for Immigrants

Because most immigrants are unfamiliar with how state insurance policies in the United States work, it's worth learning a few useful shortcuts that can pave the way for a solid auto policy. These actions should be near the top of the list.

1. Make sure your paperwork is in order. "The most common reason illegal immigrants get into trouble is a lack of a driver's license or auto insurance," Castro said. "Make certain that your insurance is in compliance with state laws, and that you drive with your registration and other required documents, such as your car title." Also, if you do not have legal immigration status, consider moving to a state where you can obtain a driver's license."
2. Get your driver's license as soon as possible. Citizens who can obtain a driver's license because they are legally present in the United States should do so as soon as possible to avoid legal violations that could result in the loss of an immigration benefit, such as a green card or visa.
3. Don't rush through the job. "Try not to buy the first insurance policy you come across. "Make sure to research at least three or four insurance policies and compare which policy best fits you," Schrader advised.
4. Look for lenient insurance companies. One significant issue that new U.S. immigrants face is a lack of driving history, which means they are considered high-risk drivers.

"This means that many insurers will charge more for insurance than more experienced drivers, even if they drove in their previous country of residence," Aliza Vigderman, director of content at AutoInsurance.com, explained. "This will be the case for an immigrant's first three years of auto insurance policy experience." After that, insurers relax, and the problem is resolved with a clean driving record."

Meanwhile, look for companies that accept bad drivers, such as State Farm, Direct Auto, and National General. "Make sure to compare rates from multiple providers," Vigderman advised. If you need assistance comparing auto insurance rates, iQ is here to assist you!