Going on a Road Trip? Car Insurance Tips for Every Destination

America is full of road trips. Every year, thousands of drivers get in their cars to explore the United States. But the issue of car insurance may get lost in the excitement.

Anytime you set out on the road, there's a chance of an accident. It's crucial that your car insurance is all set and ready to go before embarking on your trip.

If you're taking your own car

There are two things you should know about car insurance when road-tripping with your own car:

First your policy allows other people to drive your car — as long as they have your permission, have a license, and aren't drunk or specifically excluded from your policy.

Car insurance follows the car. So if your friend is behind the wheel and crashes your car, your policy is the primary coverage for everyone involved in the accident, including the other driver. If you hit your policy's limits, then your friend's policy will be used next.

Luckily, car insurance companies recognize that you shouldn't be penalized for having the legal car insurance minimums in one state and crashing in another with higher limits. As long as you are not intoxicated or behaving in a way that would invalidate your policy, your company will bump your limits up to match the other state's minimums. This also applies if you crash north of the border in Canada. It does not apply in Mexico, however. See below for more.

If you're renting a car

If you rent a car, you need rental car insurance. Whether the car's from Enterprise, Hertz, Avis or another rental company, you have a few options for coverage.

If you have collision insurance on your policy, though, you may opt out of the coverage. And if you charge the entire rental to a credit card, the card may cover the LDW at no charge to you. Paying for the LDW or using a credit card may be a good way to go, because if you do get into an accident, you won't have to file a claim with your insurance company and risk your rates going up.

SLC is mandatory if you do not have car insurance. Liability insurance is the minimum amount you need to legally drive. If you have car insurance, you already have liability coverage and won't be required to pay for SLC. But if you have low limits, like the state minimum, going with SLC may be a smart move, because it may cover you for up to a million dollars. You don't really need PAI if you have PIP (personal injury protection) or health insurance, and PEC isn't worth the price in most cases.

If you're driving to Mexico

Buying Mexican car insurance is simple. Both Geico and Progressive allow you to purchase policies online through one of their partners. Plans come in daily, six-month and yearlong terms. A six-month policy is usually the best deal, costing around $300 to $400. Remember to account for that expense when calculating the cost of your road trip.