FEATURE ARTICLE
Driving Without Borders
TIPS & ADVICE
Excess vs. Primary Liability Insurance
PARTNER SPOTLIGHT
MyXpat.com
PRODUCT SPOTLIGHT
International Auto Insurance
TIPS & ADVICE
Foreign Road Signs
DID YOU KNOW
Clements Insight
ON A GOOD NOTE
A word from our clients
Driving Without Borders
by Yan Bui
It was a simple plan. Your international transferee in Spain wanted to spend a weekend in Düsseldorf. He left his apartment in Madrid, had an uneventful drive through France and upon crossing the border into Germany, decided to test his driving skills on the famed Autobahn. That’s when he got into an automobile accident with a Danish tourist. Your transferee learns that unfortunately, his auto policy isn’t quite as international as he thought. He contacts his local automobile insurance provider and finds out that his policy only covers him while he is driving within the borders of Spain, but not in other countries.
For many international transferees who do not wish to be confined to using only taxis and public transportation in a foreign country, driving is an appealing option. Driving presents additional concerns that should be adequately addressed to ensure that the international transferee is properly protected against risk. First of all, international transferees should decide if they will rent an automobile or if they will drive an automobile they have already purchased or leased, either from their home country or in their country of residence. Transferees driving a company-owned automobile should check with their company to determine if they are permitted to drive the car outside their posted country’s borders. Fully understanding the corporate policy on their automobiles will save the transferee from confusion later.
Regardless of rental or purchase, it is important to secure the appropriate amount of automobile insurance coverage. Insurance requirements will vary from country to country. For example, according to the U.S. State Department’s website, an international transferee must carry a minimum of $200,000 in liability insurance in Canada. Meanwhile, Mexico requires an international transferee to post a bond as much as 50% of the car’s value if the car does not have any theft, third party liability, and comprehensive insurance.
Some countries require drivers to purchase primary liability insurance with a local insurance company. However, in many cases, this is little more than simply a vehicle registration fee, and does not actually provide coverage at the time of loss. In such instances, it is recommended that drivers purchase excess liability coverage with a trusted international automobile insurance provider to help ensure that the driver will have adequate protection in the unfortunate event of an accident. When investigating automobile coverages, international transferees should seek an international insurance provider that offers physical damage (comprehensive and collision), primary automobile liability (third party) and excess liability coverage. They should seek an insurance plan that would provide worldwide protection, and avoid coverage that is confined to only within country borders. Thus, if an international transferee travels from country to country, he or she would be covered regardless of where they go.
Additional endorsements to a policy that international transferees might wish to consider are reimbursement of automobile rental insurance expenses and disablement towing coverage. International transferees should investigate their international insurance options, and find a carrier that will reimburse them for the cost of a rental car in the event of an unforeseen accident. The amount of reimbursement per day and the length of coverage will vary, so transferees should consider the level of protection with which they feel comfortable. Disablement towing coverage will provide for towing in the event the international transferee’s automobile is rendered inoperative.
Lastly, it is recommended that an international transferee secure an international driving permit (IDP), which is recognized by over 150 countries worldwide. IDP’s are not valid in an international transferee’s country of residence, but are used when he or she is driving in foreign countries. Before your transferee leaves for his or her international assignment, advise him or her to consider obtaining an IDP, particularly if he or she intends to drive while in a foreign country. In addition, check on the country’s driving rules, such as minimum and maximum driving ages, road permits, use of safety belts, etc., prior to travel.
Whether international transferees rent or purchase an automobile while on assignment, they should secure the appropriate level of insurance protection. The general rule of thumb when seeking coverage is to secure the same amount of automobile insurance protection that the international transferee normally has at home. International transferees opting to rent an automobile can typically obtain automobile insurance protection from the car rental company. However, for international transferees who opt to drive an owned or leased automobile, it is recommended that they consult a trusted international insurance provider to obtain adequate coverage.
Reprinted with permission of the International Relocation Associates (TIRA), from the June 2005 Newsletter. For more information on TIRA, please visit their homepage at www.tiranetwork.com.
Click here to return to the table of contents.
|||| Tips & Advice
Physical Damage vs. Liability Coverage
Don’t understand the difference between Physical Damage and Liability coverage? Why purchase these types of insurance? Here’s a brief explanation of both types of coverages:
Physical Damage Coverage
Physical Damage includes coverage for collision and comprehensive. Collision insurance is coverage for your vehicle while it is being operated. Comprehensive insurance provides coverage for the vehicle while it is parked, including theft, vandalism, etc. Each coverage is provided under one policy.
It is recommended that this coverage be purchased from a U.S. insurance company. The purchase of this coverage within the country in which you are located can be very risky. Many local companies are poorly regulated and, therefore, provide inconsistent claims settlements. Many overseas insurance companies simply do not provide for standard areas of coverage that are normally expected. In many cases, there is no regulatory body which can assist you if you are dissatisfied with your claims settlement.
Liability Coverage
Automobile Primary Liability insurance must be purchased in the country in which you are located. Local governments will require this in order to register your vehicle. Be aware that limits of coverage can be very low in many countries. If you are uncomfortable with the level of coverage available in your country, you may wish to obtain Excess Liability insurance. This coverage simply increases your locally purchased primary coverage to an appropriate level of protection (USD $300,000 or $500,000).
Excess Liability coverage should be purchased from stateside insurance companies. Also be aware when shopping for Primary Liability insurance that rates may vary drastically. Do not assume that the premium quote you receive is the standard within that country. Shopping for competitive rates is as essential in foreign countries as it is in your home country.
Click here to return to the table of contents.
MyXpat.com
Launched in 2006, MyXPat.com is a single source for transferees living and working outside their home country, providing insurance, mortgage, and savings benefits in one unique program. Using MyXPat.com, transferees are able to access real-time rates and terms, find preferred lenders to discuss financing options, and secure personal insurance coverages such as homeowner’s, property, automobile, and health protection plans.
MyXPat.com offers a Mobility Concierge service, which helps transferees with a variety of real estate transactions, saving them thousands of dollars in reduced fees and cash back rewards. Transferees also have online access to the Mortgage Service Request Form, which will help them find their lenders of choice. Also, transferees using MyXPat.com will be able to refinance, buy and/or sell their U.S. property and homes while they are living abroad, without having to return to the United States for closing and settlement. Closing costs such as origination, underwriting, appraisal, credit report, and other miscellaneous fees are also waived for MyXPat.com members.
In addition to having access to value-added services such as real estate, financing, and insurance benefits, MyXPat.com members also enjoy significant cost savings. On average, MyXPat.com members can save more than $3,000 on a $200,000 home, and may also be eligible to receive cash rebates of $2 per $1,000 every time they use MyXPat.com’s approved realtors. MyXPat.com members also enjoy a 10% discount off their insurance costs.
Insurance coverage available includes worldwide property, health, and automobile protection. MyXPat.com members can protect their property during the move and/or at their new foreign destination. For transferees who will not be covered under their organization’s group medical plan, individual health insurance plans are also available. MyXPat.com members can elect to join the health insurance program available, which offers $5 million (USD) in lifetime benefits, emergency evacuation and family reunion, and more.
Some countries require transferees to purchase local insurance coverage for their automobiles, but sometimes this coverage is inadequate. Members can secure an added layer of protection for their automobiles while they are overseas by purchasing third party liability insurance with MyXPat.com as well. All insurance plans available cover MyXPat.com members worldwide, protecting them wherever their travels take them.
Transferees moving overseas to live and work can use the centralized services of MyXPat.com to help them secure the appropriate real estate and mortgage solutions, financing options, and insurance protection plans for a low annual membership fee of $65 (USD). In addition to these valuable services, members receive a monthly newsletter filled with useful tips and advice on living and working abroad. Transferees interested in learning more about MyXPat.com can visit http://www.MyXPat.com for more information.
MyXPat.com was created by TIRA members Executive Resources Limited, Relocation Consultants, and Clements International, and is managed by Rob Newton. For more information about the program, please contact Mr. Newton at +1. 727.823.1690 or via email at rnewton@erlimited.com .
For more information about MyXpat.com, please visit their website at http://www.myxpat.com/.
Click here to return to the table of contents.
International Auto Insurance
Clements International’s AutoElite® Program offers Comprehensive, Collision and Theft, Primary Auto Liability (Third Party), and Excess Liability coverage to individuals who live and work in foreign countries. The program provides coverage for the automobile while it is being operated or parked abroad.
WorldAuto offers physical damage and liability coverages for multinational organizations. Highlights include:
- Worldwide Liability Coverage
- Collision & Theft Coverage
- Bodily Injury & Property Damage Coverage
- Transit Coverage
- Hired and Non-Owned Automobiles
- Terrorism Coverage
- Rental Insurance Reimbursement Expense
To determine the right level of protection for you and your organization, please contact your dedicated Clements International representative today at +1(202) 872-0060 or via email at info@clements.com. Also visit us on the web at http://www.clements.com.
Click here to return to the table of contents.
Interesting Foreign Road Signs
When operating a vehicle in a foreign country, it is always advisable to become familiar with meanings behind local road signs. The following are examples of few unique foreign signs:
 |
Germany |
 |
Italy |
 |
Canada |
 |
New Zealand |
|
Lebanon |
Click here to return to the table of contents.
Clements at the Big “I”
Thank you to all who attended our IIABA (Big "I") cocktail reception hosted in April 2006 at the Renaissance hotel in Washington, DC. The much acclaimed “Clementini”, the Clements signature martini, was a big hit. So for those of you who are curious, and those who are already avid followers, we’ve included the recipe. Enjoy!
TRY A CLEMENTINI
1 ½ oz. Vodka
1 oz. Fresh Pineapple juice
½ oz. Cranberry juice
½ oz. Cointreau
Shake all ingredients with ice and strain into a chilled martini glass. Then simply garnish with a pineapple leaf and serve.
Meet Our Staff
To continue to acquaint you with your friendly, dedicated Clements International staff members, we’d like to introduce you to two of our Account Executives: Jean Nestor and Laura Schauble. |
|
 |
|
 |
|
Click here to return to the table of contents.
Here is what our clients have to say...
Dear Clements,
"I must say that your claims manager is one of the nicest, most attentive and patient people I have dealt with. She is timely, and quite empathetic and is a joy to talk to, so please keep her around if you want to keep customers like me happy."
Sincerely,
Foreign Service Officer
Zagreb, Croatia
Dear Clements,
"Thanks a lot for your kind follow-up after I had received such good service
already. I will not hesitate to recommend you to my colleagues... with pleasure."
Best wishes,
Expatriate
European Foundation
Torino, Italy
Dear Clements,
"WOW, that was fast! Thank you for the quick processing of my automobile claim. When they say Clements is good they mean it. Many thanks for your help."
Best wishes,
USAID Officer
Kenya, Nairobi
Click here to return to the table of contents.