With costs of traveling to other countries at an all time high, it only makes sense to decide how much coverage you actually need from your overseas auto-insurance plan. This will have a lot to do with how much you will have to pay of your premiums, and getting more coverage than is necessary will definitely drive up your costs. Of course, under insuring yourself is also risky, as you wouldn't want to be in the position of getting into an accident in an unfamiliar country only to find out that you are not covered for your costs.
You do have to be aware that the minimum amount required by most overseas auto-insurance companies is generally not enough to provide you adequate coverage in most cases. With a $10,000 property damage coverage for instance, which is the typical amount that many foreign car insurance companies require, you will hardly be able to pay the costs of damage to a luxury vehicle in the event of an accident. This is why it is generally a good idea to buy more coverage than the minimum required by law, yet still keep within your budget.
So how much overseas auto-insurance coverage do you need to have? Generally speaking, you will need more coverage the more assets and income you have. Some insurance experts recommend that you get a personal liability umbrella policy to the amount of $1 million. This may cost you as much as $270 in premiums every year, but you will sleep better knowing that you will be largely protected in the event of a major lawsuit.