Car Insurance for Undocumented Immigrants: What to Know

Every state requires a driver’s license (or permit) to operate a vehicle. Almost every state requires drivers to have auto insurance. So, if you can’t get a driver’s license in your state, it’s unlikely that you can register a vehicle, obtain car insurance, and lawfully drive.

Some insurance companies will sell auto insurance to someone without a license but will still require you to list a licensed primary driver on the policy. For example, if you can’t drive yourself, you can buy a policy and list a relative or aide as the primary driver. If you or someone without a license drives the vehicle, the policy won’t cover you.

If you’re eligible for the Deferred Action for Childhood Arrivals (DACA) program, you can apply for and earn a driver’s license like any U.S. citizen. In some states, DACA recipients can get a Real ID license with current documents.

To be eligible for DACA, applicants must meet specific requirements regarding when they arrived in the U.S., how long they’ve lived in the U.S., and more. Legal status under DACA isn’t permanent. DACA recipients have to renew their immigration status every two years.^[6]

If you have a valid driver’s license from another country, you can legally drive in some U.S. states temporarily.^[7] But a foreign license isn’t enough everywhere, so contact the department of motor vehicles where you’ll be living and driving before you travel.

Some states also require foreign license holders to have an international driving permit (IDP). You have to get an IDP in your home country before coming to the U.S., as the U.S. doesn’t issue them to visitors. If you get an IDP, carry both when you drive.

In Texas, for example, you can drive with a valid foreign license for up to one year or until you become a resident. You don’t need an IDP if your license is in English.^[8] If your license is in a different language, an IDP will act as an authorized translation. Once you become a Texas resident, you have to apply for a license within 90 days to continue to drive legally.

Most insurance companies sell car insurance coverage to tourist or immigrant drivers with a valid foreign license. Shop around with different companies and ask about requirements to ensure you get the best protection.

First, learn a bit about standard car insurance coverages. Every state that offers driving privileges to undocumented immigrants requires drivers to have auto insurance.

Coverages include:

• Liability insurance covers costs from injuries or property damage you cause while driving your car. Your state will require a minimum amount of liability coverage.

• Personal injury protection (PIP) or medical payments (MedPay) provides reimbursement for medical expenses for injuries to you or your passengers.

• Collision coverage reimburses you for damage to your vehicle from a collision with another vehicle or object when you’re at fault.

• Comprehensive coverage protects against theft and damage from incidents other than a collision.

• Optional or additional coverages include glass coverage, rental reimbursement, gap insurance, and accident forgiveness.

Understanding your driving habits and coverage needs is key to getting the right coverage. Start by asking yourself a few questions:

• How much do you drive? If you don’t drive very often or very far, a pay-per-mile policy could be a great fit and a lot cheaper than a traditional policy.

• Who else is driving your car? If other people live with you and drive your car regularly, you should list them on the policy.

• How much is your car worth? Liability coverage might be enough if you drive an old car you wouldn’t replace after an incident. But if you want coverage for damage to your vehicle, you’ll need collision and comprehensive insurance.

• Where do you live and park? Location affects rates significantly. For example, since urban areas have higher theft rates, you might want to consider comprehensive coverage if you live in a city.

Considering your financial situation and budget will help you know what you can afford (and what risks you can take). For example, choosing a higher deductible — what you pay before your insurance kicks in — often means cheaper premiums. But you’ll have to cover that amount when you file a claim before your insurance will cover the damage.

Your liability insurance limits are also important to consider. If you cause an accident, your insurance company will pay up to your policy limits to cover injuries, damages, or your legal defense. Buying more liability coverage than the minimum requirement will increase your premium slightly, but it also adds more protection.

Don’t settle for the first auto insurance quote you get. Prices differ significantly among insurance companies, so get quotes and compare rates to find the best price for your ideal coverage. This also helps you figure out what’s available and the price range you’re looking at.

This is a great time to look up discounts. While many insurers offer a few standard discounts, not all companies offer the same types. As you compare rates, ask about what other savings opportunities that company has available.

To secure a policy, you may have to share some information and documentation about you and your vehicle. That may include your name, date of birth, driver’s license number, individual taxpayer identification number (ITIN), and garaging address. You’ll also need to provide your vehicle’s make and model, mileage, security features, and vehicle identification number (VIN).

Don’t be afraid to call an insurance company if you have questions. Many large insurers have agents who speak multiple languages. They could help you navigate the process if your immigration status presents any challenges.

Before you confirm your purchase, review your policy in detail. Make sure the listed coverage amounts are what you want and your personal details are correct.

This is also the moment to decide how you want to pay. Many insurers offer discounts for paying online or setting up automatic payments. Choose what works for you.