If you know someone who lives in another country and is planning to relocate to the United States, this brief blog post should be shared with them…it will save them thousands of dollars!
Prior driving history is a big factor in determing your auto insurance rates while shopping around. Most insurance companies want to see five years of relatively clean driving history in order for them to offer you their best rates. This history is confirmed by MVR’s (Motor Vehicle Reports) and CLUE (Comprehensive Loss Underwriting Exchcange) reports. In the case of international drivers moving to the United States, this information is generally not accessible by domestic insurance companies. So the sad reality is that these drivers tend to pay higher rates for the first 3-5 years of residence in the United States, even if they are good drivers! This may also be the case for US Citizens who get relocated for business for a few years and then move back to the US. (NOTE: There ARE accomodations made for members of the military who were overseas.)
If you have been driving internationally and are moving to the US, do yourself and your wallet a favor. Call your international insurance company and request a “letter of experience” that outlines when you were covered and what type of claims you had. If you can obtain a driving history report as well, that will help.
As always, please contact me with any questions.