Overseas car insurance

Planning on driving overseas? It's important to have a licence which is recognised by your destination country and adequate insurance to cover any incidents.

However, an Australian driver’s licence might not be enough and it's unlikely that your current car insurance will offer protection while you're overseas.

Getting a valid licence

The first step to getting overseas car insurance is to make sure you have a valid licence. In many cases, you can do this by getting an International Driving Permit.

An International Driving Permit (IDP) translates your current Australian licence into 9 languages and is recognised in 98% of countries.

Many countries will not allow you to rent a car if you do not have an IDP. If you're found to be driving without one, you may be subject to fines or penalties.

Getting an International Driving Permit (IDP)

To be eligible for an IDP, you must be over 18 and hold a provisional (P1 or P2) or full (unrestricted) licence. Interim licences are not accepted. Once you have an IDP, they're valid for 12 months.

You can apply for an IDP through the Australian Automobile Association (AAA) or its affiliates, including NRMA, RACV, RACQ, RAA and RAC. If you're in NSW, you can apply for an IDP at your local Service NSW centre.

IDPs are used in conjunction with your licence, so you'll still need to take your Australian licence with you.

Which countries require an International Driving Permit?

An International Driving Permit is accepted in over 98% of countries, including Croatia, Germany, Ireland, Japan, Mexico, Poland, Singapore and Sweden. It's also recommended in many countries, including Italy, the UK and the US. Some rental car companies in these countries will require an IDP.

• Check this registry to see which countries require or accept an International Driving Permit.

Getting overseas car insurance

Rental car insurance. If you're renting a car, the rental company usually requires you to have adequate insurance and will often organise this for you. In many cases, it's included in the price of the rental. However, this insurance can come come with a high excess, which means you may have to pay several thousand dollars towards a claim. Consider taking out additional rental car excess insurance or buying a travel insurance policy which includes rental car excess insurance. This will cover the cost of the excess for you, if your rental car is damaged.

Existing car insurance. If you're borrowing a car from a friend or relative, you may be covered by their existing insurance policy. Always contact the insurer directly to check. If you're not covered, you may be able to add your name to the policy for an additional fee.

Temporary car insurance. Some overseas insurers offer policies specifically designed for international visitors. Some useful search terms include:

- Specialist car insurance in (your destination country)
- Temporary car insurance in (your destination county)
- Car insurance for IDP holders in (your destination country)
- Car insurance for non-residents in (your destination country)

You may need to work with a specialist broker or underwriter. For example, ERS specialises in insuring high-value cars temporarily visiting the UK.

If you plan on driving through multiple countries, check your insurance is valid in all of these countries.

❮ ❯

Thanks, Dad!

Whenever I visit home, I make sure my IDP is up to date and my dad adds me to his car insurance. It's just one phone call to his insurer and it's all sorted in about 15 minutes. This year, it cost about £30 ($57) to add me to his policy for 5 weeks.

— Nicola Middlemiss, insurance expert and British expat

The easier option

My friends and I planned a road trip across Italy and found we either needed an IDP or an official translation of your Australian licence to hire a car. The IDP is by far the easier route and only costs $49.

— Simon, 30.

Travelling overseas with your own car

If you're taking your own car overseas and it's registered in Australia, you'll likely need a Carnet de Passages en Douane.

The Carnet de Passages en Douane, or CPD Carnet, refers to customs documents which cover the temporary admission of motor vehicles to foreign countries.

Pronounced car-nay, the documents are essentially a passport for your car. They're valid for 12 months and let drivers temporarily import their vehicles for touring purposes only. It means you don't have to pay customs duties and other taxes that would apply to a permanent move.

You'll also need to arrange temporary overseas car insurance.

FAQs

• How long does it take to get an IDP?

  The application process for an IDP is very quick – it should only take a few minutes. You should then allow 3 business days for your application to be processed, before it is posted to you. The entire process typically takes 5–10 business days.

• Who is the authority behind IDPs?

  International Driving Permits are sanctioned by the United Nations.

• Where do I need an IDP?

  Laws vary between countries. You can find a complete list here.

• How to get a carnet

  You will need the following:

  • • A photocopy of the vehicle's current renewal registration certificate and verification from your state's department of transport's website that the registration is current. These must show the vehicle's make, model, VIN and engine number.
    • A current evaluation of the vehicle on a reputable dealer's letterhead.
    • A copy of your driver's licence in colour.
    • A copy of all your current passports in colour.
    • A copy of any motoring club membership.
    • A brief written itinerary of your planned trip.
    • 2 next of kin contacts.
    • A list of tools and spare parts kept in the vehicle and their value.

  You can apply for a carnet through the Australian Automobile Association or its affiliates. Fees will apply, which may vary depending on your destinations and your car. This includes a refundable bond which you can get back on your return.

• How to use a carnet

  The carnet comes as a voucher booklet with sets of 3 vouchers. Customs officials at your entry point retain the first voucher, customs officials at your exit point keep the second and you keep the third. Customs officials stamp this third voucher when you enter or exit a country.

  Your carnet kit will also include an AUS licence plate for overseas use. Affix this near your rear licence plate. Instead of paying a separate customs fee at each border, you simply need to present the CPD carnet and get your voucher stamped.

Why you can trust Finder's car insurance experts

You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees.

You save time. We spend 100s of hours researching car insurance so you can sort the gold from the junk faster.

You can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.

To make sure you get accurate and helpful information, this guide has been edited by Jason Loewenthal as part of our fact-checking process.

Written by

Andrew Munro

Editor

Andrew Munro was the global cryptocurrency editor at Finder. During his time he covered all aspects of cryptocurrency and the blockchain. Before he became cryptocurrency editor, he was a content writer for Finder covering various topics over his nearly 5 years in the role. Prior to joining Finder he was a web copywriter. Andrew has a Bachelor of Arts from the University of New South Wales. See full bio