Auto Insurance In Canada: Am I Covered?

If you're planning a trip to Canada and intend to drive, it's important to ensure that your auto insurance policy will cover you in case of any damage, accidents, or theft. Most auto policies in the United States extend coverage to Canada, so you're likely to be covered by your current provider. However, it's always a good idea to review your policy and contact your insurance agent to confirm that you meet the minimum coverage requirements in Canada. Obtaining a Motor Vehicle Liability Card / Canada Inter-province insurance card from your provider is also recommended, as it serves as proof of insurance specifically for Canada, and not having it can result in fines. In addition to insurance, remember to bring other important documents, such as your passport, driver's license, and vehicle registration when entering Canada.

US auto insurance covers you in Canada

If you're planning a trip to Canada and will be driving during your visit, it's important to know whether your auto insurance policy will cover you. The good news is that, in most cases, US auto insurance does cover you in Canada. Here's what you need to know:

US Auto Insurance Coverage in Canada

Nearly all auto insurance policies in the US cover the United States, its territories, and Canada. This means that your US auto insurance policy will most likely provide the same coverage, limits, and liabilities when you're driving in Canada. However, it's always a good idea to review your policy and contact your insurance provider to confirm your coverage and ensure you meet any minimum requirements.

Obtaining a Non-Resident Insurance Card

While your US auto insurance policy may cover you in Canada, you will need to obtain a special card as proof of insurance. This is called a "Motor Vehicle Liability Card" or a "Canada Inter-Province Card." Contact your insurance provider to request this card, as it may take 5-7 business days to arrive. Having this card is important because, without it, you may be liable for a fine if a Canadian police officer requests your proof of insurance.

Understanding Coverage Limits and Liabilities

It's important to note that minimum coverage limits in Canada are typically higher than in most US states. Most provinces in Canada require a minimum liability coverage of $200,000 (in Canadian dollars), while Quebec requires $50,000. It's recommended to review your policy and consider increasing your coverage limits to ensure you meet the higher minimums in Canada.

Travel Insurance Considerations

In addition to auto insurance, consider whether your policy includes travel insurance or if you need to purchase a separate policy. Travel insurance can provide extra protection in case of unexpected problems during your trip, such as emergency medical issues or lost/stolen luggage. This type of coverage is often available through insurance companies or travel agencies and can provide peace of mind while travelling in Canada.

Documents to Carry When Driving in Canada

When driving from the US into Canada, there are several important documents you need to have with you. These include proof of US citizenship (such as a passport or birth certificate), your vehicle registration, and your Canadian insurance card. Keep in mind that you will also need to comply with Canadian entry requirements, such as providing proof of vaccination through the ArriveCAN app.

Get a non-resident insurance card

If you are a non-resident in Canada and want to drive, you will need to get a Canadian Non-Resident Inter-Provincial Motor Vehicle Liability Card, also known as a Canadian ID Card or a 'yellow card'. This is because US auto insurance is not always valid in Canada.

The Canadian Non-Resident Inter-Provincial Motor Vehicle Liability Card is proof that your USA auto policy liability limits meet the minimum requirements for each/all Canadian provinces and territories, and that your coverage extends to Canada and its territories.

You can get this card from your insurance provider. It is recommended that you carry this card, as well as a motor vehicle liability card, vehicle ownership papers, and a copy of your automobile policy. If you are unable to provide proof of insurance, you risk being fined or having your vehicle impounded.

Some sources suggest that the card is not required in every province, and that border agents will not ask for it. However, it is still recommended to get one, as it may be required by police if you are stopped or are in an accident.

Minimum coverage in Canada is higher

Canada and the United States have reciprocal laws recognising each other's vehicle insurance. This means that, in most cases, your US insurance will protect you with the same coverage, limits, and liabilities when you visit Canada. However, it is important to note that minimum coverage limits in Canada are higher than in most US states. While liability coverage in most US states falls between $50,000 and $100,000, in Canada, the minimum coverage is $200,000 in most provinces. Quebec has a lower minimum coverage of $50,000, while Nova Scotia and Manitoba require a minimum of $500,000.

Before travelling to Canada, it is essential to review your policy to ensure that your coverage complies with Canadian regulations. You may need to modify your liability limits or adjust your coverage to meet the higher minimums in Canada. Contact your insurance provider to discuss your specific needs and options. They can help you increase your limits or recommend additional coverage to ensure you are adequately protected during your trip.

In addition to checking your coverage limits, it is also recommended to obtain a "Motor Vehicle Liability Card" or a "Canada Inter-Province Card" from your insurance carrier. This card serves as proof of insurance and confirms that your US policy is valid in Canada. While it is not mandatory, having this card can help you avoid fines if you are pulled over by the police or involved in an accident.

Furthermore, it is worth noting that US-based insurance companies are not permitted to offer liability insurance in Mexico. If you are planning to drive from the US to Mexico, you will need to purchase a separate Mexican-issued insurance policy to meet the legal requirements.

Review your policy and deductible

When planning a trip to Canada, it's essential to review your auto insurance policy and ensure you have the necessary coverage. Here are some key points to consider regarding your policy and deductible:

Understanding Your Policy:

• Check with Your Provider: Contact your insurance provider to confirm that your current policy extends to Canada. Most US-based insurance carriers cover you while driving in Canada, but it's always best to verify.
• Understand Coverage Limits: Canada has higher minimum coverage requirements than most US states. Ensure your policy meets these minimums. In most provinces, the liability coverage requirement is $200,000 (Canadian dollars), while in Quebec, it is $50,000.
• Obtain the Necessary Cards: Request a "Motor Vehicle Liability Card / Canada Inter-province" insurance card from your provider. This card serves as proof of insurance in Canada and can help you avoid fines. If your provider doesn't offer this card, consider carrying your insurance policy or US insurance card.
• Review Additional Coverage Options: Consider adding travel insurance to your policy if it doesn't already include it. Travel insurance can provide extra protection for medical issues and lost or stolen luggage.

Understanding Your Deductible:

• Know Your Deductible Type: Comprehensive, collision, and sometimes medical coverage typically have deductibles. A deductible is the amount you pay out of pocket before your insurance policy covers the rest.
• Choosing the Right Deductible Amount: Selecting a higher deductible generally leads to lower monthly premiums, while a lower deductible results in higher premiums. Consider your financial situation and risk factors when choosing a deductible amount.
• Understanding When to Pay a Deductible: You will need to pay a deductible when you are at fault in a car accident or when filing specific insurance claims, such as comprehensive or collision claims. If you are not at fault, the other party's insurance should cover the repairs, and you won't need to pay a deductible.
• Vanishing Deductibles: Some insurance companies offer vanishing deductible programs that reward safe driving. With these programs, your deductible decreases or disappears over time if you have no accidents or violations.

Compare quotes to save money

Comparing quotes is the most effective way to save money on car insurance in Canada.

Car insurance is mandatory in Canada, and the cost is rising. With premiums on the rise, finding the right coverage at an affordable price has become a challenge for many drivers. Comparing quotes helps you maximize savings and find the cheapest rate.

There are many factors that affect the cost of car insurance. Some of these factors include:

• Your age, gender, and marital status
• Where you live
• Your vehicle brand, model, and year
• Your driving record
• How much you drive
• The coverage type, limits, and endorsements you choose

When comparing quotes, be sure to consider the company's reputation, customer service, and claims process. It's also important to understand what each policy covers and what it doesn't. By comparing quotes, you can find the cheapest rate while still getting the coverage you need.

In addition to comparing quotes, there are other ways to save money on car insurance. These include:

• Bundling insurance policies, such as auto and home insurance
• Driving safely and maintaining a clean record
• Increasing your deductible
• Installing safety features, such as anti-theft devices
• Paying your premium in full upfront

By comparing quotes and taking advantage of these cost-saving strategies, you can keep your car insurance costs down.

Frequently asked questions