Does Your Us Auto Insurance Cover Canada?

Does US Auto Insurance Cover Canada?

If you're planning a trip to Canada and intend to drive, you may be wondering if your US auto insurance policy will cover you. The good news is that, in most cases, it does. There are reciprocal laws between the US and Canada that mean your US insurance will typically protect you with the same coverage and limits that you have at home. However, it's important to check with your insurance company before your trip to ensure you have the proper documents and coverage.

US auto insurance covers driving in Canada

US auto insurance typically covers driving in Canada, even if you're planning on renting a car. However, it's important to check with your insurance company before your trip to ensure you have the proper documents and adequate coverage.

Reciprocal Laws

Canada and the US have reciprocal laws for auto insurance, which means a US insurance policy will cover you in Canada. Most standard personal auto policies automatically include Canada in the 'policy territory', so there's usually no need to adjust your coverage. However, it's always a good idea to check with your insurance company before embarking on any trip that crosses a border.

What to Bring

If you're driving to Canada, you'll need to bring proof of insurance, along with your driver's license and passport. You may also need to present a Canada Non-Resident Inter-Province Motor Vehicle Liability Insurance Card (also known as a Yellow Card), which you can obtain from your insurer in the US. If you don't have this card, you could be fined or have your vehicle impounded. It's also recommended to bring a copy of your US auto insurance policy and your US auto insurance ID card as a backup.

Rental Cars

If you're renting a car in Canada, your US auto insurance will usually extend to cover the rental vehicle. However, it's important to check with your insurance company, as some policies may not include international coverage for rental cars. Additionally, there may be additional charges for renting certain types of vehicles, such as RVs or SUVs.

Extended Stays

If you're planning on staying in Canada for an extended period, you'll need to look into obtaining a visitor's visa or purchasing a Canadian insurance policy. US auto insurance policies will become invalid after six months for US citizens who do not have a visitor's visa.

You need a valid US driver's license

If you're planning a trip to Canada and intend to drive, you'll need to carry a valid US driver's license. This is in addition to a valid passport or other government-approved travel document, vehicle registration, and proof of auto insurance.

It's important to note that driving laws and rules can vary between provinces or territories in Canada, so it's recommended to check with the government of your destination province or territory for specific requirements.

• Driver's License: Your US driver's license is valid in Canada and allows you to drive for a short period, typically up to 90 days in some provinces. However, it's always a good idea to check with the specific province or territory you're visiting.
• International Driving Permit (IDP): While not mandatory, an IDP can be useful if you plan to drive in Canada for an extended period. It serves as a translation of your US driver's license into French and English and is accepted in countries that signed the 1949 Convention on Road Traffic, including Canada.
• Proof of Auto Insurance: US auto insurance typically covers you while driving in Canada, whether in your vehicle or a rental car. However, it's crucial to contact your insurance company before your trip to confirm coverage and obtain the necessary documents, such as a Canada Non-Resident Inter-Province Motor Vehicle Liability Insurance Card (also known as a Yellow Card). Failure to present this card when requested may result in fines or vehicle impoundment.
• Vehicle Registration: Ensure your vehicle has valid registration before driving to Canada. Border agents may request this to verify that your vehicle is not stolen.
• Additional Considerations: Driving in Canada is generally similar to driving in the US. However, there are some differences in laws and rules. Familiarize yourself with the specific requirements of the province or territory you'll be driving in, especially regarding speed limits, road signs, seatbelt laws, smoking restrictions, cell phone use, and right turns on red lights.

Remember to always carry your valid US driver's license and other relevant documents when driving in Canada, as they may be requested by authorities.

You need proof of insurance

If you're driving into Canada, you'll need to carry proof of insurance. This is in addition to a valid passport or other government-approved travel document, a valid U.S. driver's license, and vehicle registration.

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. You can obtain this from your insurer in the U.S. If you don't have this card, you could be fined or have your vehicle impounded.

Your regular auto insurance card should also be sufficient proof of insurance. It's a good idea to pack a copy of your U.S. auto insurance policy or your U.S. auto insurance ID card as a backup, as these may also be accepted.

If you're renting a car in the U.S. to drive into Canada, the rental company may be able to provide you with a Yellow Card. If you rent the car in Canada, you may be able to purchase additional coverage from the rental agency.

If you're a U.S. citizen and plan to stay in Canada for longer than six months, you'll need to obtain a visitor's visa, otherwise, your U.S. insurance policy will no longer be valid. If you're moving to Canada permanently, you'll need to buy coverage from a Canadian insurer.

You need a valid vehicle registration

When driving in Canada, it's important to have a valid vehicle registration. This is because Canadian border agents may ask for your registration to ensure you're not driving a stolen vehicle.

To obtain a valid vehicle registration, you'll need to visit the relevant provincial office. In British Columbia, this is the ICBC; in Quebec, it's the SAAQ; and in New Brunswick, it's Service New Brunswick. It's necessary to go to one of their offices in person with all the required documents, which include a transfer form, a bill of sale, and proof of residency.

The transfer form is a document signed by the seller that states they are transferring ownership of the vehicle to you, the buyer. You should arrange this with the seller. The bill of sale is necessary so that the proper amount of tax can be paid, as Canada levies a sales tax on vehicles.

Proof of residency is required because the registration of your vehicle must include an address, to which a letter will be sent when your registration expires. This can be challenging for tourists, but it is possible to obtain a residential address for vehicle registration purposes.

If you're driving a rental car, you may be able to obtain a temporary registration form that allows you to drive the vehicle for a limited number of days before registering it. This can be useful if you need to drive the vehicle to another province to register it.

It's important to ensure your vehicle is properly registered before driving in Canada, as driving an unregistered vehicle can result in fines or other legal consequences.

You may need a Canada Non-Resident Inter-Province Motor Vehicle Liability Insurance Card

If you're planning a road trip to Canada, it's important to ensure you have the right documentation. While your U.S. auto insurance will typically cover you in Canada, you may need to obtain a Canada Non-Resident Inter-Province Motor Vehicle Liability Insurance Card, also known as a "Yellow Card" or a "Canadian ID Card". Here's what you need to know:

This card is a form of proof of insurance specifically for non-residents driving in Canada. It serves as evidence that your U.S. insurer has filed the necessary paperwork, known as a Power of Attorney and Undertaking (PAU), with Canadian authorities. This ensures that your insurance coverage meets the minimum third-party liability requirements in the province or territory where you're driving.

Who Needs a Canada Non-Resident Inter-Province Motor Vehicle Liability Insurance Card?

If you're a U.S. citizen driving your own vehicle or a rental car in Canada, you generally need this card. Canadian law requires non-residents to provide proof of insurance, and this card is specifically designed for that purpose. It's important to note that the card must be vehicle-specific, so if you're driving multiple vehicles, each one needs to be listed on the card.

You can request the card from your insurance company. They will issue it to you if they have filed the PAU and ordered the forms from the designated supplier. It's a good idea to contact your insurance company before your trip to ensure you have the necessary documentation.

Failing to provide proof of insurance in Canada can result in fines or even impoundment of your vehicle. Additionally, if you're in an accident without the proper insurance documentation, you may be personally liable for any damages or injuries.

Other Documents to Carry

In addition to the Canada Non-Resident Inter-Province Motor Vehicle Liability Insurance Card, there are a few other documents you should carry when driving in Canada:

• A valid driver's license
• A valid passport or other approved travel document
• Vehicle registration documents
• Your U.S. auto insurance policy or auto insurance ID card

Frequently asked questions