Insurance
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      1. The White Paper for F1 Students
      2. F-1 Living in U.S.
      3. Insurance

      F-1 Insurance: Car Insurance

      This articles will explain car insurance terms and provide important tips for purchasing car insurance.

      U.S. law requires all drivers to have car insurance. Driving without insurance can result in fines, vehicle impoundment, or even the suspension of your driver’s license. Thus, if you want to drive in the U.S., it is crucial to get car insurance.

      The process for F-1 students to buy car insurance is basically the same as for local residents. However, because F-1 students usually do not have a U.S. driving record, their premiums may be higher.

       

      Glossary of Car Insurance Terms

      • Insurance Coverage Limit: The maximum amount your insurance company will pay for a claim during the coverage period.

      • Liability Insurance: This is divided into two categories: Bodily Injury Liability and Property Damage Liability. The former covers the cost of injuries to others in an accident, while the latter covers the cost of damage you cause to someone else’s property, such as vehicles, homes, or fences.

      • Collision Insurance: Covers damage to your own vehicle resulting from a collision with another vehicle or object, regardless of who is at fault.

      • Comprehensive Insurance: Provides coverage for damage or loss caused by non-collision events such as theft, fire, floods, or wildlife.

      • Uninsured/Underinsured Motorist Coverage: If you are in an accident with a driver who either does not have insurance or whose coverage is insufficient to cover the damages, it helps pay for your medical expenses and vehicle repairs.

      • Medical Payments Coverage: Pays for medical expenses for you and your passengers, regardless of who is at fault in an accident.

      • Personal Injury Protection (PIP): Covers medical expenses, lost wages, and other related costs resulting from a car accident. The extent of coverage varies by state.

      • Deductible: The amount you must pay before your insurance coverage begins. A higher deductible comes with a lower monthly premium, but you will need to pay more if you file a claim.

      • Premium: The amount you pay for your insurance plan, billed monthly, quarterly, or annually.

      • Gap Insurance: Covers the difference between what you owe on your car loan or lease and the car's actual cash value if your car is scrapped in an accident.

       

      How to Buy Car Insurance?

      • Compare Online: Use websites such as Progressive, Geico, State Farm, or Aetna to get quotes and compare prices.

      • Check with Your School: Many schools partner with insurance companies to offer students special discounts and deals.

      • Go Through an Agent: Insurance agents can provide quotes from various companies and help you find the most suitable insurance plan.

       

      Important Tips for F-1 Students

      • Driver’s License: Some insurance companies may require you to have a U.S. driver’s license, but others might accept an international license.

      • Short-Term Insurance: If you are only staying in the U.S. for a short time, consider getting short-term insurance.

      • Student Discounts: Many insurers offer discounts for students, particularly those with excellent academic records.

      • Credit History: Your credit history can impact your car insurance rates. As an F-1 student, it is important to maintain a good credit record.

      • Driving Record: Keeping a clean driving record can not only keep you safe but also make you qualify for lower insurance rates. Insurance companies usually reassess your premium every 6 months. If you have had an accident, your rates will increase. However, if you maintain a clean driving record for 6 months or more, you can ask your insurance company to lower your rate.