The Best Car Insurance Options for Immigrants in 2023

Moving to a new country can be an exciting and rewarding experience. However, it also comes with many challenges, like navigating a new culture, language, laws, and systems. One of those key systems is car insurance.

Getting affordable car insurance as an immigrant can seem daunting. However, with some knowledge about how car insurance works in the U.S., you can find the coverage you need at a price you can afford.

In this guide, we’ll explain everything you need to know about car insurance for immigrants, including:

• How car insurance works in the U.S.
• Factors that affect costs
• Tips for saving money
• The best insurance companies for immigrants

How Does Car Insurance Work in the U.S.?

In the United States, car insurance is mandatory. All drivers must carry a minimum amount of liability insurance to operate a vehicle legally.

Liability insurance covers injuries or damage that you cause to others when driving. It’s made up of two components:

• Bodily injury liability: Covers medical bills for people injured in an accident you cause
• Property damage liability: Covers repairs to the property of others that you damage in an accident

The minimum liability insurance requirements vary by state but are typically:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $25,000 property damage

In addition to liability insurance, most U.S. drivers purchase these optional coverages:

• Collision: Repairs to your vehicle after an accident
• Comprehensive: Repairs from non-crash damage like theft, vandalism, or weather
• Uninsured/underinsured motorist: Covers your costs if you’re hit by a driver with no or too little insurance
• Personal injury protection: Pays medical expenses for you and your passengers, regardless of fault

What Factors Affect Costs for Immigrants?

As a new immigrant and driver in the U.S., several factors will impact how much you pay for car insurance.

Immigration Status

Documented immigrants who are U.S. citizens or have green cards usually have an easier time getting affordable car insurance than undocumented immigrants.

That’s because just 19 states allow undocumented immigrants to get driver’s licenses. In all other states, it’s challenging or impossible to get a license, which makes it very difficult to purchase car insurance.

The 19 states that allow undocumented immigrants to get licenses are:

• California
• Colorado
• Connecticut
• Delaware
• Hawaii
• Illinois
• Maryland
• Massachusetts
• Minnesota
• Nevada
• New Jersey
• New Mexico
• New York
• Oregon
• Rhode Island
• Utah
• Vermont
• Virginia
• Washington
• Washington, D.C.

Driving and Credit History

Insurance companies will consider your driving history, including any past accidents, traffic violations, or DUIs. A clean driving record will help lower your costs.

Many states also allow insurers to check your credit history and use your credit-based insurance score to set rates. Good credit can help reduce what you pay.

Since immigrants won’t have a U.S. driving or credit record when they first arrive, companies will charge higher rates like they would for any new driver.

Other Factors

Like all drivers, other personal and vehicle factors that affect your immigrant car insurance costs include:

• Age: Drivers under 25 pay the highest rates
• Location: Insurance costs more in urban areas
• Gender: Men typically pay more than women
• Marital status: Married drivers often pay less
• Car make/model: More expensive cars have higher insurance costs
• Annual mileage: The more you drive, the more you generally pay

Tips to Save Money on Immigrant Car Insurance

Finding affordable coverage begins with getting quotes from multiple insurance companies. Rates can vary widely, so check several insurers to find the best deal.

Here are some other great ways to save:

Compare quotes often: Get new quotes every 6-12 months as new insurers enter the market and prices change.

Ask about discounts: Inquire about discounts for things like defensive driving courses, good students, safe driving, paying in full, and more.

Increase your deductible: Choosing a higher deductible reduces premiums but means you pay more out-of-pocket for a claim.

Improve your credit: Insurers favor drivers with good credit. Pay bills on time and lower debt to boost your credit score.

Bundle insurance policies: You can save up to 15% for bundling car insurance with renters or homeowners coverage.

Limit your mileage: Companies offer discounts for driving fewer than a set number of miles per year.

Drop unnecessary coverage: Removing collision and comprehensive lowers costs but leaves you unprotected. Don’t drop liability.

Enroll in a usage-based program: These programs use a telematics device or app to track driving habits and offer discounted rates for safe drivers.

The Best Car Insurance Companies for Immigrants

We reviewed over two dozen top insurers based on affordability, availability, and customer satisfaction to find the best options for immigrant drivers. Here are our top recommendations:

Geico

With some of the lowest rates in the industry and availability in all 50 states, Geico is a great choice for immigrants seeking minimum liability coverage. They offer a number of ways to save, including discounts for things like being a safe driver and having multiple policies with them.

Pros

• Low rates, especially for minimum liability coverage
• Available nationwide
• Numerous discount opportunities

Cons

• Quotes and customer service only available in English and Spanish

The General

The General specializes in providing affordable high-risk car insurance, including policies for drivers with no credit history. Their rates are very competitive, and policies can be purchased online, over the phone, or with local agents who speak multiple languages.

Pros

• Affordable non-standard policies
• Bilingual customer service in English and Spanish
• Monthly payment plans available

Cons

• Limited availability in just 14 states
• Few discounts offered

State Farm

State Farm offers competitive rates to immigrants and has one of the largest networks of insurance agents in the country. Many independent State Farm agents are immigrants themselves or speak multiple languages, which is a major benefit.

Pros

• 18,000+ agents nationwide, many bilingual
• Good student discount
• Steer Clear program for drivers under 25

Cons

• Rates tend to be higher for non-citizens
• Few online quote and policy options

The Hartford

The Hartford provides coverage options specifically for immigrant drivers, including for those new to the country. Their policies are available in all states, and they have bilingual customer service and claims assistance in over 170 languages.

Pros

• Insurance options for new immigrants
• Bilingual services in 170+ languages
• Discounts for safe driving, billing, and more

Cons

• Rates may be higher than some competitors
• Limited online quote availability

Plymouth Rock Assurance

This regional insurer offers extremely low rates in East Coast states. Plymouth Rock has customized auto insurance options for new immigrants, including flexibility around driver’s license and education requirements.

Pros

• Very low rates in NJ, MA, CT, NH, PA
• Custom immigrant policies
• Rideshare coverage available

Cons

• Only operates in Mid-Atlantic and New England states

The Key Takeaway

Finding affordable car insurance as an immigrant comes down to shopping around. Be sure to compare quotes from national insurers like Geico and The General as well as regional and local companies. Consider insurers like The Hartford that cater to immigrants. With some research, you can find the best car insurance for your situation.