Insurance Car Laws & Requirements for Immigrants in the U.S.

 Moving to the United States brings many new responsibilities – one of the most important is securing auto insurance. In the U.S., every driver must have car insurance (often called auto or vehicle insurance) to comply with the law. Almost every state requires motorists to carry at least a minimum liability policy, making insurance mandatory for anyone getting behind the wheel progressive.com libertymutual.com. This guide explains what immigrants and foreign drivers need to know about U.S. car insurance laws, from licensing rules to coverage requirements and how to obtain a policy.

Why Car Insurance is Mandatory for All Drivers

In the U.S., insurance is not optional – it’s a legal requirement. Every state except New Hampshire requires drivers to carry liability insurance autoinsurance.com  progressive.com. This means if you cause a crash, your policy pays for other people’s injuries and property damage up to the policy limits. If you drive without insurance, you can face severe penalties: fines, license suspension, and even legal liability for all accident costs insurify.com libertymutual.com. As Progressive notes, “anyone driving in the USA needs at least the minimum auto insurance required by the state you’re driving in”progressive.com.

Most states mandate two core coverages: Bodily Injury Liability (BI) and Property Damage Liability (PD). Bodily injury liability pays for injuries if you’re at fault, and property damage liability covers repairs to others’ vehicles or property. According to the latest data, almost every state requires both BI and PD, except Florida and New Jersey (which require only property-damage liability) autoinsurance.com. In addition, many states demand extra protection, such as:

• Personal Injury Protection (PIP) or Medical Payments coverage (required in ~12 states) – it covers medical bills for you and your passengers regardless of who is at fault.

• Uninsured/Underinsured Motorist (UM/UIM) coverage – required in ~18 states, this pays you if an uninsured or hit-and-run driver injures you.

• Comprehensive and Collision – optional coverages that pay for damage to your car from theft, storms, or crashes.

Because rules vary by state, it’s critical to check your local DMV or state insurance department. For example, Virginia and New Hampshire have no compulsory insurance (NH has no requirement at all, VA allows drivers to pay a $500 fee instead of buying insurance) autoinsurance.com. But in the other 48 states and DC, you must have at least the state’s minimum liability policy before legally driving autoinsurance.com.

Featured Snippet: Almost all U.S. states require drivers to have auto insurance. In most states you must carry at least liability coverage for bodily injury and property damage autoinsurance.com progressive.com. Only Virginia and New Hampshire allow driving without insurance (Virginia drivers can pay a $500 fee instead) autoinsurance.com.

State-Specific Coverage Minimums and Requirements

Insurance regulations are set at the state level, so exact requirements differ. For example:

• California – minimum 15/30/5 ($15,000 BI per person, $30,000 BI per accident, $5,000 PD) plus uninsured motorist coverage.

• Texas – minimum 30/60/25 for BI/PD.

• Florida – no BI required, minimum 10/20/10, but mandatory PIP and UM/UIM.

• New York – 25/50/10, PIP mandatory.

• Illinois – 25/50/20, PIP and UIM mandatory.

And so on. Because each state’s laws differ, you should always confirm the exact limits and additional coverages where you live. Checking your state’s DMV or insurance bureau is essential.

Despite the variations, the principle is the same everywhere: if you drive a car, you must carry at least state-mandated auto insurance. It protects you from financial ruin if you cause an accident and provides peace of mind that you can cover others’ injuries and damage.

Obtaining a Driver’s License as an Immigrant

Before you can buy car insurance in the U.S., you generally need a valid driver’s license. U.S. insurers almost always require a license when writing a policy autoinsurance.com insurify.com. That means as a new immigrant (or visitor) you must either use a foreign-issued license (for a limited time) or obtain a state license.

Fortunately, most immigrants can get a U.S. license. Citizens and legal residents (green card holders, visa holders) can apply for a license in their state by providing standard IDs (passport, visa, I-94, etc.) and proof of residence. Many states require a Social Security Number (SSN) to issue a license. However, some states will allow an Individual Taxpayer Identification Number (ITIN) or a signed affidavit for proof of identity. For example, California’s AB 60 law lets undocumented immigrants get a license with a foreign passport and proof of California residency ncsl.org.

Which states allow licenses without lawful status? As of 2023, 19 states and DC have laws permitting undocumented immigrants to obtain driver’s licenses ncsl.org. These include California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Utah, Vermont, Virginia and Washington D.C. ncsl.org. (Some new states may be added after 2023.) In those jurisdictions, an applicant needs documents like a foreign passport or consular ID plus proof of in-state residency ncsl.org insurancenavy.com.

Map: U.S. states that offer (dark blue) vs do not offer (light blue) driving privileges to undocumented immigrants ncsl.org.

In contrast, states that do not allow licenses for undocumented people will require proof of lawful presence (like a green card or visa). For those states, immigrants must first have legal immigration status to get a license and insurance. Even if you are in the U.S. on a temporary visa (student, work visa, etc.), you can get a license in your state by showing your valid immigration paperwork and meeting all other requirements.

Bottom line: to comply with auto insurance laws, most immigrants must secure a state license. Some can use their home-country license (see below), but long-term residents will need a U.S. license. The Zebra notes that “a driver’s license is almost always necessary” to get insurance, and 16 states even allow people to get licenses without an SSN thezebra.com. (In those states, you might use an ITIN instead of an SSN thezebra.com.)

Driving on a Foreign License or IDP

If you’re visiting or have just arrived in the U.S., you can often drive on your valid foreign license for a limited time. Progressive explains that most states allow tourists and new arrivals to use their home-country license for about three months, and an International Driving Permit (IDP) can extend that to roughly one year progressive.com libertymutual.com. An IDP is a translation of your license, not a license itself, but many rental companies and even insurers accept it.

For example, Progressive advises that in many states you can drive on a foreign license for three months, or on an IDP for up to a year progressive.com. State Farm similarly notes that some insurers let newcomers use their international license short-term, but beyond that a U.S. license is needed statefarm.com. In practice, a visitor or short-term student should plan to buy insurance covering the expected stay: rental car insurance for trips, or a temporary six-month policy if you import a car.

If you decide to stay longer or move permanently, you must switch to a U.S. driver’s license. Progressive recommends obtaining your state license early, especially before your IDP expires progressive.com. In many states, you can directly transfer a foreign license (especially if it’s from Canada or a U.S.-partner country), but others require taking the full written and road tests. Once you have a state license, you can then get regular auto insurance at standard rates.

Documentation Needed to Buy Car Insurance

When it’s time to purchase a policy, insurance companies will ask for several documents. Although requirements vary by insurer, you should generally be prepared to provide:

• Identification: A government-issued ID such as your foreign passport, visa or residence permit, and possibly a consular ID card or driver’s license from home.

• Proof of Address: A U.S. address is needed for the policy. Bring documents like a lease agreement, utility bill, or bank statement showing your name and local address clearsurance.com.

• Driver’s License: A valid license from your home country or an International Driving Permit can suffice initially statefarm.comprogressive.com. If you already have a U.S. license, even better.

• Driving History: Any record of driving or insurance from your home country, if available. Most U.S. insurers do not fully count foreign driving history, but it can sometimes help if you have documentation.

• Immigration Documents: Proof of legal presence may be required in some states or by some insurers (even in states that allow undocumented licenses, the DMV may require tax returns or affidavits ncsl.org insurancenavy.com). Bring your visa papers, I-94 form, or SSN/ITIN.

Clearsurance confirms the basics: “You need identification (such as a passport), proof of residency, and a driving history to buy car insurance as an immigrant. Companies like Allstate and Progressive may accept international documents” clearsurance.com. In practice, popular insurers (Progressive, Allstate, Liberty Mutual, etc.) often allow foreign documents if they are valid and interpretable. Some companies even ask for extra proof, like a letter from your employer or school, if you have no credit or local history.

You might be asked if you have an SSN. Some carriers require a Social Security Number for credit checks, but many allow a policy without it. As Liberty Mutual notes, “If you’re new to the U.S. and need car insurance, you may be able to get it without a Social Security number. Requirements vary by company, so shop around.” libertymutual.com. The Zebra also advises that finding insurance without an SSN is possible but varies by insurer and state thezebra.com libertymutual.com. If you don’t have an SSN, you can usually provide your ITIN or passport number to get quotes.

Shopping for Insurance: Step-by-Step

Once you have (or are working on) a license and paperwork, use this process to secure coverage:

• Gather your documents. Have on hand your driver’s license (foreign or U.S.), passport/ID, visa/immigration papers, proof of address, and any past driving or insurance records.

• Compare quotes from multiple companies. Many insurers are open to non-citizens. Get quotes online or through an agent. Major insurers like Geico, Progressive, Allstate, State Farm, and Liberty Mutual will typically offer policies to immigrants with valid foreign licenses or IDPs progressive.com clearsurance.com. Some smaller or local insurers also specialize in non-citizen drivers.

• Check state minimum requirements. Before buying, confirm the state-mandated coverage levels (liability limits, PIP, etc.) where you live statefarm.com libertymutual.com. Make sure every quote meets those minima so you are legal.

• Select coverages for your needs. At minimum, choose the liability amounts required. Then consider adding collision and comprehensive if your car is valuable or financed. Also think about UM/UIM coverage since many drivers in the U.S. are uninsured.

• Understand premiums and discounts. New drivers (including immigrants) often pay higher rates because of no U.S. history autoinsurance.com insurify.com. However, you can reduce costs with discounts: safe driving, anti-theft devices, bundling multiple policies (auto+home), or paying in full. Shop around each year for cheaper options.

State Farm’s advisor lays out similar steps: 1) Gather documents (home license, IDP, driving history), 2) Compare quotes, 3) Confirm state requirements, and 4) Select a policy statefarm.com. By following these steps and having your paperwork ready, you’ll streamline the process of getting car insurance as a new immigrant.

Coverage Options and Costs for Immigrants

Because insurance is regulated by each state, the types of coverage available are the same for immigrants as for citizens. Liberty Mutual emphasizes that “Car insurance requirements for non-U.S. citizens are the same as U.S. citizens” libertymutual.com. That means you will pay for and receive coverage like any other driver.

Here are some things to keep in mind:

• Types of coverage: Beyond mandatory liability, you can purchase collision (pays to fix your car after a crash), comprehensive (theft or weather damage), PIP/Medical (your medical bills), and UM/UIM (your costs if another driver is uninsured). These optional coverages protect you and your vehicle. As Liberty Mutual explains, comp/collision are typically optional “if you’re not leasing or financing a car” libertymutual.com. However, if you bought an expensive car or have a loan, lenders usually require collision and comprehensive.

• Premium factors: Insurers set rates based on many factors: age, driving record, type of car, and credit history. Immigrants are often treated as new drivers. According to one immigration lawyer, an insurer “will charge more if the person has not had a U.S. license for at least three years” because there’s no U.S. driving record autoinsurance.com. In other words, being an immigrant does not inherently make you a “high risk” – it’s just that you lack U.S. history. Over time, as you build a clean driving record in America, rates can drop.

• Average costs: Currently, the average U.S. auto insurance policy is around $143 per month (full coverage) insurify.com. Immigrants often see higher-than-average quotes initially. For example, Insurify notes that many immigrants’ starting premiums are higher than natives’ mainly due to being classified as “new drivers” insurify.com insurify.com. Shopping around is key. The cheapest insurers (e.g. Geico, Progressive) and discounts (safe-driver, student, defensive driving courses) can help offset the premium.

• Discounts: Don’t overlook savings programs. Bundling your auto policy with other insurance (home/renters), asking about low-mileage or good-student discounts, and signing up for defensive driving courses can significantly cut rates. According to data, common discounts include Safe Driver, Multi-Policy (bundling), Anti-Theft, and Good Student clearsurance.com. Over time, maintaining a clean record is one of the best ways to earn discounts.

In short, once you have your license, getting a good policy is a matter of comparing quotes and choosing the coverage you can afford. Immigrants have access to the same types of policies as anyone else, and many of the top insurers compete to serve new Americans.

Undocumented Immigrants: Special Considerations

What if you do not have legal immigration status? The picture is more complicated for undocumented immigrants. Auto insurance itself is not based on citizenship, but getting insured usually depends on having a license.

If you live in one of the 19 states (and DC) mentioned earlier, you can obtain a standard driver’s license even without lawful presence ncsl.org. That license then lets you buy insurance just like any other driver. Some states (like Illinois) even allow you to purchase insurance before you get a license, by issuing a temporary ID or by adding you as an “excluded driver” on someone else’s policy until you can add yourself later insurancenavy.com.

Crucially, U.S. law prohibits insurers from charging different rates based on immigration status alone. For example, New York’s Department of Financial Services issued a ruling that insurers cannot consider immigration status when setting premiums autoinsurance.com. So an undocumented driver in New York pays the same rate as a citizen with the same driving record. Generally, any increased cost for undocumented drivers comes from being a “new driver” with no U.S. history autoinsurance.com insurify.com, not from their immigration status.

If your state does not issue licenses to undocumented immigrants, it is illegal to drive, and most insurers will not write a policy without a valid license. In those cases, obtaining insurance can be very difficult. However, programs like DACA (Deferred Action for Childhood Arrivals) can sometimes help young people gain legal presence, an SSN, and thus a license in all states autoinsurance.com.

In summary: Insurance itself is available to undocumented immigrants in states that grant licenses. If you have a state-issued license (legal or illegal-status), you can obtain full coverage. If not, you may only afford “uninsured motorist” or special policies, but driving uninsured is against the law in most states.

Frequently Asked Questions

Q: Do I need car insurance when I move to the U.S.?

Yes. Car insurance is required by law for drivers in nearly all U.S. states progressive.com libertymutual.com. Even immigrants must carry at least the state-mandated liability coverage to drive legally. If you plan to operate a vehicle, obtaining insurance is mandatory.

Q: Can I buy insurance with a foreign driver’s license?

Yes, often you can. As long as you have a valid license that allows you to drive in the U.S., insurers will sell you a policy. Progressive confirms that you don’t need a U.S. license to get insurance; a recognized foreign license or an International Driving Permit (IDP) is usually acceptable progressive.com. Keep in mind that most states allow foreign licenses only temporarily (about 3 months) before you must switch to a local license progressive.com libertymutual.com.

Q: Which documents do I need to get car insurance in the U.S.?

You’ll need: 1) Identification (passport, visa, or consular card), 2) Proof of address in the state (utility bill, lease, etc.), 3) Driver’s license (foreign or U.S.) and/or IDP, 4) Immigration papers (visa, green card, or proof of lawful status), and 5) Driving history if any clearsurance.com libertymutual.com. Some insurers also ask for an SSN, but many will accept an ITIN or allow you to proceed without one thezebra.com libertymutual.com.

Q: Do I need a Social Security Number to buy car insurance?

Not necessarily. While SSNs make it easier for insurers to run credit and driving checks, many companies will allow policies without an SSN. Liberty Mutual notes that you can often get insurance as a new resident even without an SSN, depending on the company libertymutual.com. If you lack an SSN, provide your ITIN or passport number. Some states (like those allowing undocumented licenses) explicitly permit alternative IDs or ITINs thezebra.com.

Q: Will my driving history from home affect my U.S. insurance rates?

Generally no. U.S. insurers typically do not count foreign driving records. As Liberty Mutual puts it, your overseas history usually doesn’t transfer, so you will be treated as a new driver with no U.S. record libertymutual.com. That means your rates may start higher (like a novice driver) until you build a safe driving history here.

Q: Can undocumented immigrants get car insurance in the U.S.?

Yes, if your state allows you to get a driver’s license. Nineteen states and D.C. issue licenses to immigrants without legal status ncsl.org. In those states, once you have a license you can buy regular auto insurance. Insurers in those states cannot deny you coverage based solely on immigration status (for example, New York law forbids such discrimination autoinsurance.com). In states that do not issue licenses to undocumented people, it is generally illegal to drive (and thus very hard to insure).

Q: Are insurance rates higher for immigrants?

Often they start higher, but not because of nationality. New arrivals are usually rated as “new drivers” since they have no U.S. driving history autoinsurance.com insurify.com. This lack of a track record can increase premiums. Over time, as you accumulate clean U.S. driving experience, your rates should decrease. It is not lawful for companies to charge more simply because you are an immigrant.

Q: What coverages do I need by law?

You must meet your state’s minimums. In practice that means buying at least the liability insurance (BI and PD) that your state requires libertymutual.com. Many states also require PIP and/or UM/UIM. Always check your state DMV or insurance department. You can then choose higher limits or additional coverages (like collision and comprehensive) based on your situation.

Conclusion and Next Steps

Navigating U.S. car insurance can seem complex, but knowing the rules helps new drivers stay legal and protected. Remember: You cannot drive legally without insurance in most states progressive.com libertymutual.com. As soon as you have (or are getting) a valid driver’s license in the U.S., contact insurance providers to compare quotes. Use your passport and visa documents, proof of residence, and any driving history to speed up the process.

By following your state’s requirements and shopping competitively, you can find a suitable policy. Good drivers with clean records (even if new to the U.S.) can usually find affordable coverage. If you have concerns—such as lack of an SSN or past traffic violations—ask insurers about non-traditional documentation or programs.

Getting insured not only keeps you compliant with U.S. law, it also gives you peace of mind that you and others will be covered if an accident occurs. Take action today: check your state’s DMV guidelines, gather your documents, and get quotes from several companies. That way you’ll hit the road with confidence and protection. Safe driving!