Auto Insurance: Am I Covered In Canada?

Does my auto insurance cover me in Canada?

As a US citizen, you may be wondering if your auto insurance will cover you during a trip to Canada. The good news is that, generally, your US auto insurance will cover you in Canada, whether you're driving your own vehicle or a rental car. This is due to reciprocal laws between the two countries, which mean that US and Canadian insurance benefits are mutually recognised. However, it's important to check with your insurance company before your trip to ensure that your specific policy includes coverage in Canada and to find out what documentation you need to bring.

Rental car insurance in Canada

If you're renting a car in Canada, it's important to understand the insurance requirements and options available to you. Here's a comprehensive guide to help you navigate rental car insurance in Canada:

Understanding the Requirements

Before getting into the specifics of rental car insurance in Canada, it's important to understand the broader context of auto insurance requirements in the country. In Canada, car insurance is mandatory, and all drivers are required to have a valid insurance policy. The minimum liability insurance coverage requirements vary across provinces, ranging from $50,000 in Quebec to $200,000 in all other provinces.

Rental Car Insurance Options

Now, let's focus specifically on rental car insurance in Canada:

U.S. Citizens Renting in Canada

If you're a U.S. citizen planning to rent a car in Canada, there are a few things you should keep in mind. First, ensure that you have a valid driver's license, a credit card, and liability coverage. You can typically obtain liability coverage directly from the rental car company or use secondary coverage from other sources, such as your credit card or personal insurance. It's important to confirm with the rental company that you are allowed to drive the vehicle across the border.

Additionally, you may need to purchase supplemental insurance, either from the rental company or your personal insurance provider, to ensure adequate coverage. The rental company will usually provide you with a non-resident insurance card as proof of coverage for Canadian authorities. Keep in mind that your U.S. auto insurance policy will cover you in Canada for up to six months. If you plan to stay longer, you will need to obtain a Canadian insurance policy.

Collision Damage Waiver (CDW)

When renting a car in Canada, you may come across the term "Collision Damage Waiver" or CDW. This is not a mandatory type of insurance but is often offered by rental companies. CDW waives or reduces your responsibility for damage to the rental vehicle, including towing, storage, loss of use, and administrative fees. However, it typically does not cover theft of the rental vehicle, and certain types of damage, such as windshield cracks or tire punctures, may be excluded. CDW can be purchased separately and usually costs between $22.99 and $39.99 per day.

Personal Accident Insurance (PAI) and Personal Effects Coverage (PEC)

Personal Accident Insurance (PAI) and Personal Effects Coverage (PEC) are optional types of insurance that you can purchase when renting a car in Canada. PAI provides coverage for accidental death, accident-related medical expenses, and ambulance expenses for both the renter and their passengers. PEC insures the personal belongings of the renter, additional drivers, and their immediate family members traveling with them against loss or damage. These coverages typically cost around $6.99 CAD per day and are available at most rental locations except for those in British Columbia.

Supplemental Liability Insurance (SLI or LIS)

Supplemental Liability Insurance (SLI or LIS) is another optional type of insurance that you may consider when renting a car in Canada. It increases your liability coverage above the mandatory minimum, typically set at $1 million to $2 million. SLI can provide additional peace of mind in the event of an accident or incident.

Roadside Assistance Cover

Roadside Assistance Cover is an optional type of insurance that covers roadside costs such as towing, fuel, and key lockout assistance. This type of coverage typically costs between $13.70 and $20.56 per day and can be a worthwhile investment for added peace of mind during your travels.

Super Collision Damage Waiver (SCDW)

Super Collision Damage Waiver (SCDW) is an optional coverage that reduces your deductible amount towards $0.00. This means that in the event of an accident, you won't have to pay a deductible, which can save you a significant amount of money. SCDW typically costs between $41.11 and $61.67 per day.

Best Practices and Recommendations

To ensure a smooth and worry-free rental experience in Canada, consider the following tips:

• Always review your existing insurance policies, including auto insurance and credit card coverage, to understand what is already covered before purchasing additional insurance.
• Take photos and videos of the rental vehicle at pickup and drop-off to document its condition and avoid any unfair charges for pre-existing damage.
• Obtain a "Canadian non-resident inter-provincial motor vehicle liability card" from your insurer or request a letter stating that your policy extends to Canada. This serves as official proof of coverage while visiting Canada.
• Understand the rules of the road in Canada, including speed limits, which are measured in kilometers per hour, to avoid accidental violations.
• In the event of an accident, contact your insurance company within 24-48 hours and follow their claims procedure.
• If you plan to stay in Canada for an extended period, typically more than 90 days, you may need to obtain a visitor's visa and purchase a Canadian insurance policy, as your U.S. policy may no longer be valid.

Required documents to drive in Canada

When driving to Canada, it is important to carry the correct documentation. Here is a list of required documents to ensure you can enter Canada by car:

Firstly, all persons entering Canada from the US by car must present proof of citizenship and identity. A passport is the only universally accepted identification document and is therefore recommended. It proves both your identity and citizenship. However, there are other documents that can be used to denote identity and citizenship. These include:

• A NEXUS card, when entering by air, land or marine travel.
• A FAST card, when arriving by land or marine travel only.
• An enhanced driver's license issued by a Canadian province or territory.
• A permanent residence card.
• A Canadian birth certificate.
• A certificate of Indian status.
• A Canadian emergency travel document.
• A Canadian temporary passport.
• A certificate of Canadian citizenship.
• An enhanced identification/photo card issued by a Canadian province or territory.

If you are a permanent resident of the US, you must carry proof of your status, such as a US permanent resident card. If you are a US citizen, a government-issued photo ID, such as a driver's license, and proof of citizenship, such as a birth certificate, are sufficient to enter Canada. However, you will need additional documents to re-enter the US, such as an enhanced driver's license or a trusted traveller card.

Children under 16 only need to present proof of citizenship.

It is also important to note that some provinces require drivers to keep their headlights on during the day, and some have banned the use of hand-held cell phones while driving.

How to report an accident in Canada

If you are involved in a car accident in Canada, you must report it to your insurance company and, usually, to the police. The rules vary from province to province, but it's always a good idea to prepare to make the call, no matter the circumstance.

Reporting to the Police

You don't always have to call the police after a collision. However, you must call the police from the scene if:

• Vehicle damage meets or exceeds the regional threshold (e.g. in Ontario, the regional damage threshold is CAD $2,000).
• Individuals have suffered injuries.
• There are suspected Criminal Code violations, e.g. impaired driving.
• The accident involves a government vehicle.
• A vehicle is carrying dangerous goods.
• The collision involves a pedestrian or cyclist.
• If one of the drivers does not cooperate or leaves the scene.

If you're unsure whether to call the police, it's a good idea to report the accident anyway. Call your local police or 911 from the scene of the accident.

Reporting to Your Insurer

In all cases, you must report the collision to your insurance company. You should do this within 48 or 72 hours of the accident, but the sooner, the better. The Insurance Bureau of Canada has a sample Accident Report Form you can carry with you to make it easier to note down essential details. These details include ownership and insurance details of everyone involved in the collision, as well as the names and contact info of witnesses.

Local Regulations

Before you hit the road in Canada, it's important to learn the reporting guidelines for your region. Quick reporting means quicker access to any insurance benefits you may need in the event of injury or vehicle damage.

How long does US insurance cover you for in Canada?

US auto insurance covers you in Canada for up to six months, after which you will need to purchase a Canadian insurance policy. This is because US citizens can stay in Canada as tourists for up to six months without a visa. After this point, your US insurance will no longer be valid.

It is important to note that this only applies if you are a tourist in Canada. If you are permanently moving to Canada from the US, you will need to buy coverage from a Canadian insurer.

Before your trip, it is a good idea to check with your insurance company to ensure you have the proper documents and adequate coverage. Canada asks for proof of insurance in the form of a Canada Non-Resident Inter-Province Motor Vehicle Liability Insurance Card, also known as a Yellow Card. This can be obtained from your insurer in the US. If you don't have this card, you could be fined or have your vehicle impounded.

What to do if your insurance is invalid in Canada

If your insurance is invalid in Canada, there are a few steps you can take to resolve the issue and ensure you are properly covered. Here are some instructions to follow:

Firstly, review your insurance policy carefully. Check the terms and conditions of your policy to see what specific losses are covered and if there are any exclusions or events that are not covered. There may be certain claim procedures outlined that you need to follow, as well as time limits for submitting a claim. Knowing these details will help you understand the extent of your coverage and any necessary steps you need to take.

If you are unsure about any aspects of your policy, contact your insurance company. They can clarify the coverage and assist you in ensuring your insurance is valid in Canada. It is important to do this before you initiate any trip to Canada to ensure you have the proper coverage in place.

If your insurance company confirms that your policy is not valid in Canada, you may need to purchase additional coverage. This can usually be done by contacting your existing insurance provider or by reaching out to Canadian insurance companies directly. Make sure to inquire about the specific requirements for driving in Canada, as there may be differences in the required coverage.

When purchasing additional coverage or modifying your existing policy, ensure that you have at least the minimum liability insurance required in Canada. The minimum liability coverage in Canada is higher than in many U.S. states. For example, Canada requires a minimum of $200,000 (CAD) in liability coverage in most provinces, except Quebec, which mandates a minimum of $50,000.

Additionally, obtain a "Canadian Non-Resident Inter-Provincial Motor Vehicle Liability Insurance Card" from your insurer. This serves as official proof that your insurance policy covers you in Canada and meets the required coverage limits. This card, also known as a "Yellow Card," is required by Canadian authorities and not having it could result in fines or your vehicle being impounded.

By following these steps, you can ensure that you have valid insurance coverage when driving in Canada and avoid any potential issues or penalties. Remember to always review your insurance policy before travelling to a different country and confirm that you comply with the local regulations and requirements.

Frequently asked questions