INTERNATIONAL STUDENT CAR INSURANCE
Making the transition to study in the United States can be a bit confusing on top of assimilating into a new culture and possibly a new language. In addition to those challenges, international students studying in the United States may find driving and the auto insurance process even more perplexing. Most states in the U.S require auto insurance before driving any vehicle. In the United States driving without auto insurance is a violation of the law.
Making the transition to study in the United States can be a bit confusing on top of assimilating into a new culture and possibly a new language. In addition to those challenges, international students studying in the United States may find driving and the auto insurance process even more perplexing. Most states in the U.S require auto insurance before driving any vehicle. In the United States driving without auto insurance is a violation of the law.
Auto insurance works for drivers’ protection. In the event of a car accident, most students on a budget may not be able to cover the damages incurred from an accident. However, auto insurance will cover these damages so students do not have to pay them out of pocket. When purchasing car insurance there are a few measures international students may take to secure the cheapest student car insurance possible.For more information about TRANSPORTATION AND INSURANCE
Owning a Car in the U.S.
If you are like the majority of students attending the University, you may want to
have your own car. There is no question that having a car would be extremely
convenient and would permit you to take trips that otherwise would be impossible.
A New or Used Car?
Although a new car will most likely give you fewer problems than a used one, it will
also prove to be far more expensive. If you buy a new car and sell it 12 months later,
you can expect to face a rather substantial loss. Since the major loss in value takes
place in the first year of new car ownership, we do not recommend that international
students who will be in the United States a relatively short time buy a new car.
Buying a Used Car
While there is always some risk in buying a used car, its value decreases far less
than that of a new car over the same period. However, if you are fortunate to find a
good one, you will have dependable transportation.COST OF USED CARS
Review the latest auto issues of Consumer Reports (usually published in April). You
will find the magazine in the periodical section of the library. In this issue you will find
a section on "Good Bets in Used Cars" which not only includes a list of better used
car buys (listed by price range and size), but also a list of models to avoid.
Begin to look for a car in the price range you can afford. You have two options:
first, to buy directly from an individual owner (ads are found daily in the
newspaper; you can also find car ads for your zip code at online E-Auto
retailers), or, second, to buy from an established automobile dealer.
Although you may save money buying directly from an owner, we would suggest that
you consider purchasing your car from a reputable dealer who will give you a full
guarantee on the car. Thus, if anything goes wrong, the dealer will repair it potentially
at a minimal cost to you.
Several Additional Suggestions
- When buying from an individual, pay no cash until you have obtained a title.
- Try to find a car that has had a special rubberized undercoating treatment available in this part of the United States. During the winter salt is put on the roads to melt the snow, and cars that are not treated tend to have major rusting problems.
- Once you've found a vehicle, before purchase, use KBB.com to validate the purchase value and Carfax.com to check its history (includes accidents, salvages, etc.)
- Check the guarantee; make sure you know what is and what is not covered and compare dealers' guarantees.
- Bargain; don't assume the listed price is the one you must pay.
- Once you have found one or more cars that interest you and are in your price range, call the Better Business Bureau and ask them for information about the dependability of the automobile dealerships with which you are dealing. The Better Business Bureau keeps a record of consumer complaints and this information can be helpful. Don't buy from a dealer with a large complaint record.
Renting/Leasing a Car
Renting
Another option you should consider is renting a car for the specific period you plan to
travel. While this will not allow you to have a car available at all times, it will provide
you with transportation when you need it and may cost far less in the long run. Cars
may be rented by the day, week, or month from companies that are listed in the
yellow telephone pages under "Automobile Rental and Leasing."
In order to rent a car as a foreign visitor you will: COST OF RENTING
- Need an international driver's license or a country license and an international permit.
- Be asked to pay in advance a portion, if not all, of the anticipated costs.
- Be required to pay with cash, with a check from a United States bank, or with a major credit card. Most companies will require a major credit card. Your check will have to be approved by the office from which you are renting the car. Costs of car rental vary from city to city and from company to company and will be based on the size of the car you rent and the time you will keep it. A modest additional charge will cover your insurance.
- Need to be 25 years or older (21 for some dealers).
On a day-to-day rental, a car will cost (without insurance) $14 and up for a used car
and $40 and up for a new car. A month's rental of a car will average around $575 (not
including insurance or a security deposit). For a smaller car, prices will range
between $300 and $600 per month (not including insurance or a security deposit).
Prices vary considerably depending on the dealer, the size of the car, and
whether the car is new or used. Don't forget that the cost of gas (after the first
tankful is used up) is your responsibility. Also, there may be an additional
charge for mileage.
If you have a US driver’s license, it is very convenient to book a rental car by phone or
online by going to the company’s website. You will have to choose a pick-up location.
Most companies have offices around the city and at the airport as well.
Rates for airport pick-up tend to be lower. Some companies will offer a free service
to pick you up from your location (Enterprise, for example), but, generally, this offer
does not extend to offices located at the airport.
Listing of Major Car Rental Companies
.AVIS
.BUDGET
.DOLLAR
.HERTZ
.NATIONAL
.THRIFTY
Leasing a Car
One final option open to you is to lease a car for one or two years, provided that you
have an international driver's license. However, we do not recommend this method.
Any savings through leasing will be offset by higher insurance rates insisted upon by
the leaser.
In this arrangement, available through many car dealers and leasing companies in
Syracuse, you lease the car for an extended period of time and pay a monthly fee
that covers the car and its licensing.
When you lease a new car, you generally receive a new car guarantee covering
major parts and labor. Accident (liability) insurance is not usually included in this fee,
but you may also purchase the insurance the same way you would if you owned the
car yourself. Since you are not a permanent resident of the United States, you may
be asked to pay all or part of the total year's fee in advance.
The cost of leasing will vary depending on the dealer, the size of the car, your credit
rating, and whether the car is new or used. Most leases will run for a minimum period
of two years. The cost will run from $130 to $250 and up per month (not including
accident insurance or a security deposit).
Steps to Follow After Buying a Car
Step 1: Obtain a Car Title
When you purchase a vehicle, make sure to obtain a proof of ownership.
If you purchase a car from an automobile dealer, they have to provide you with a
proof of ownership. Most NYS automobile dealers send the application for your state
vehicle registration and title certificate to the DMV (they may charge a fee for this
service).
If you purchase a used car from an individual, the proof of ownership is the TITLE
certificate that the previous owner has to sign in order to transfer the ownership.
- Obtain the signed copy of the title from the owner
- Make sure the owner does not have a lien on the car (owe money). The front of the title will specify if there is a lien. If the owner does not have the title, it is probably held by a lending institution.
- Pay no money before the title is signed
- Obtain a receipt for the purchase
Step 2 : Obtain Insurance in New York State
Every motor vehicle registered in New York State (NYS) must have at least liability
insurance. This type of insurance is used for accident-related payments to someone
other than yourself. Auto insurance can be costly.
If you are a male and under 25 years of age, your insurance will cost more than for
other age/sex categories. If you are a “new” driver (holding your license for less than
3 years), you must pay a 20% surcharge on your base insurance rate. While
contacting a particular insurance company, inquire if it is authorized to do business in
New York State.
Necessary Documents
In order to purchase an auto insurance policy, insurance companies require that you
present the following:
- Driver's license. The company will request driver's license numbers for everyone you want listed on your car insurance documents.
- Vehicle Identification Number (VIN). A car’s vehicle identification number is the identifying 17-digit code for your SPECIFIC automobile. You can find the VIN on your vehicle registration card and on current car insurance documents. Sometimes you can find the VIN on the driver’s side dashboard inside the car.
- Payment information/ Deposit
Requirements for US/ international driver’s license and Social Security Number vary
from company to company. In general, car insurance companies require you to
present a valid American driver’s license and a SS number. It is better to obtain a
US driver’s license for the purpose of saving on your auto insurance rates
(known as “premiums”).
A Social Security number is required by credit-based companies in order to verify
the information you provide on your auto insurance policy application.
Step 3: Register Your Car with New York State
In order to register your car with NYS, you need to visit the Department of Motor
Vehicles (DMV) where a representative will examine your application and
documents.The address of the office is: 620 Erie Boulevard West (6 blocks west
of Salina street).
Things to bring to the DMV office:
- Proof of ownership (car TITLE)
- Proof of your identity and date of birth
DMV office will accept both a driver’s license issued by NYS and/or a foreign passport with a US visa and a valid form I-94 attached. See the list of documents required on page 4.
- Form MV-82 (Vehicle Registration / Title Application). This form can also be obtained at the DMV office.
- Verification of insurance (Form FS-20, NYS Insurance Identification Card). You must obtain this card from the insurance agent.
- Purchase receipt
- Payment method
The Department of Motor Vehicles will:
- Charge you a 8% sales tax on your purchase
If you have purchased a car from a dealer, he will have already collected the state tax from you. The Form MV-50 will serve as a proof to the DMV that the tax has already been collected.
- Give you a car registration certificate
Registration fee varies by the weight of the car
Insurance Company Information
This information is provided as an example of what some auto insurance companies
require. This is in no way a recommendation for the company. You should call several companies to compare rates to see which one suits you best.
COMPANY
|
REQUIREMENTS
|
PHONE NUMBER
|
| AIG |
| 1-877-310-5687 |
| ALLSTATE |
| Syracuse agent (315) 474-1081 |
| AMICA |
| Rochester office 1-800-24-Amica |
| GEICO |
| 800-861-8380 |
| GMAC |
| Syracuse agent (315) 468-4931 |
| PROGRESSIVE |
| 1-800-776-4737 |
| STATE FARM |
| Syracuse agent (315) 475-1226 (315) 446-0111 |
Types of Insurance Coverage
1. REQUIRED Insurance Coverage
- Bodily Injury Liability by NYS law requires the minimum coverage of: $25,000 per person, $50,000 for bodily injury to all persons
- Property Liability by NYS law requires the minimum coverage of: $10,000 per accident
- Personal Injury Protection (called No-Fault). It refers to medical insurance for yourself and passengers in your own car, but it also includes coverage for loss of wages and services. The minimum protection is $50,000 per person. Your insurance company will pay for this.
2. OPTIONAL Insurance Coverage
- Collision - any accident that occurs to your auto (i.e., while parked, collision, etc.)
- Comprehensive - any loss other than collision (i.e., fire, theft, vandalism, etc.)
IMPORTANT NOTICE: In New York State, your liability insurance coverage must remain in effect while the registration is valid, even if the vehicle is not used (except motorcycles).
Your registration will be suspended if you have a lapse of insurance.
It can occur, for example, between the date of canceling your current insurance and
the effective date of the new insurance if you change companies. If the lapse in the
insurance coverage exceeds 90 days, your driver’s license will also be suspended.
IMPORTANT REMINDERS FOR DRIVING IN NEW YORK STATE (provided by SUNY at Buffalo)
- Driving while intoxicated (“DWI”) is a very serious crime in New York State.
- In New York State, you must have a “hands-free device” to use your cell phone in the car.
- You must always wear your seat belt—it's the Law!
- Know what to do if you get pulled over by the police.
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