Giving up car insurance for a year.
 

So I'm going to live overseas in a city where I will not have a car so no insurance.

But of course I intend to rent a car occasionally.

My Visa will cover damage to my car and my health insurance damage to me!

But what insurance can I buy to cover me against damage to other cars and injury to other drivers.

I will return to US occasionally.

Will you be renting cars in the U.S., or overseas? In some foreign countries, substantial third-party liability coverage is automatically included with the rental.

In both US and Europe. In countries such as France there is no at fault insurance laws so everyone's medical insurance takes care of their own subscribers. But collision liability still exists.

I would check very carefully what coverage you get from your USA Visa credit card and USA health insurance. If non resident in USA for year will they even be valid? From what I have read on FT, USA health insurance is nil to not much when out of USA for many policies. It is unlikely to cover medical repatriation to USA. A cost of many 10's of thousands (~$200,000+) is not unusual.

For rental cars just buy the rental car companies insurance. That will be expensive, but having no insurance may send you bankrupt in the worst case.
(driving in Paris/France is errr different)

Thanks my health insurance is world wide (Anthem Blue Cross).

For car rental insurance in US my umbrella insurance may cover it. Will check on Monday

Will you still have a permanent residence in the U.S. while you are in Europe? If so, consider getting a non-owned-auto liability-insurance policy, which would cover you while renting in the U.S. (My policy is from Travelers Insurance.)

If you will not have a permanent residence in the U.S., you might qualify for a policy from www.insurance4carhire.com, depending on which European country you will be a resident of -- and on whether residency suffices, or citizenship is required.

Well I'll be moving back in a year so I'm still keep my home. Does that mean permanent-residence?

Check with your state if you have a car now. If you don't keep your insurance in CT they will suspend your registration and you have to go in the insurance pool after that.

If you're keeping your home and plan to move back there in a year, it sounds to me like that is your permanent residence/domicile. Will you still be voting/paying taxes from that address? Are you a U.S. citizen?

US citizens always pay taxes wherever they live. I am a US citizen.

When I lived in the UK for three years, I just bought an annual rental car policy through Chubb (there are others) for something like 120 GBP and it covered all my car rentals faultlessly in all countries that I had visited and rented a car in (Spain, Greece, Germany come to mind, as well as when I'd come back to the US).

Also, keep in mind that most major auto insurance companies will ding you for not having been insured for >6 months. They will often write you in a secondary pool (at higher rates) for the first 6 months before you have a shot at preferred rates again.

When I lived in London, I had a US Touring Auto Policy from USAA. If I recall, it is very inexpensive (<$50 per year). If you rent a car when you are back in the US, you get basic liability coverage of ~$100k. However, its most important function is allowing you to maintain continuous coverage and not have an insurance gap. If you return to the US in a few years, your driving record will look great (assuming no incidents) and you will be eligible for lower rates.

If you're a U.S. citizen and will be returning to your U.S. residence after your year abroad, then it seems like you're permanent residence is in the U.S., so you should be able to get a non-owned-auto liability-insurance policy once you sell your current vehicle. (If you're not planning to sell your current vehicle, I doubt that you can cancel the insurance you have on it. Check with your state's motor vehicle bureau to be sure.)

Even if you could cancel the insurance on your car for the year you'll be away, I'm not sure I'd want to have the car sit somewhere without insurance. What if some kids take it for a joy ride and crash? What if it's stolen?