Auto Insurance: Coverage For Canadians And American Visitors?

If you're planning a road trip to Canada and wondering if your auto insurance will cover you, the answer is yes. U.S. car insurance policies typically cover you in Canada, whether you're driving your own car or a rental. This is due to reciprocal agreements between the U.S. and Canadian governments, which allow for mutually recognised insurance benefits. However, it's important to check with your insurance company before your trip to ensure you have the proper documents and that your coverage complies with Canadian requirements. Additionally, make sure to carry proof of insurance, as well as your driver's license, vehicle registration, and passport when driving in Canada.

US auto insurance policies typically cover Canada

This means that, if you are a US citizen, your US insurance will usually protect you with the same coverage and limits that you have at home. However, it is important to check with your insurance company before you travel, to ensure that your specific policy covers you in Canada. It is also a good idea to check what the procedure is if you need to make a claim, and to ask about any additional coverage you may need. For example, some sources suggest that your US coverage may fall short of the minimum liability insurance coverage in Canada, so you may need to modify your liability limits before arriving.

If you are renting a car in the US to drive into Canada, you should check with the rental company about additional coverage. If you are renting a car in Canada, you may be able to purchase coverage to supplement your US policy.

When driving in Canada, you must carry proof of insurance, as well as your driver's license, vehicle registration, and passport. You may also need 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 is also recommended that you bring a copy of your US auto insurance policy and your US auto insurance ID card.

Reciprocal agreements between the US and Canada

The Canadian–American Reciprocity Treaty of 1854, also known as the Elgin-Marcy Treaty, was a treaty between the United Kingdom and the United States that applied to British North America, including the Province of Canada, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland Colony. The treaty covered raw materials and was in effect from 1854 to 1866. It represented a move toward free trade and was opposed by protectionist elements in the United States.

After the American Civil War ended in 1865, the treaty was terminated due to concerns that Canada was the only party benefiting from it and objections to the protective Cayley–Galt Tariff imposed by the Province of Canada on manufactured goods.

Fast forward to the present day, and the United States and Canada now have reciprocal auto insurance laws, which mean that a U.S. insurance policy will cover you in Canada and vice versa. This reciprocal agreement applies to both personal and rental vehicles.

However, it is important to note that this coverage is only valid if you have tourist status in Canada and does not extend beyond six months. If you plan to stay in Canada for more than six months or move there permanently, you will need to purchase a Canadian auto insurance policy.

Before driving to Canada, it is recommended to review your auto insurance policy and confirm that your coverage applies. Additionally, make sure to carry the necessary documentation, including proof of insurance, a valid driver's license, vehicle registration, and a passport when driving in Canada.

Documentation required to drive in Canada

To drive in Canada, you will need a valid driver's license, proof of insurance, and vehicle registration. It is also recommended that you carry a copy of your insurance policy, as well as your passport, and a full copy of the declarations page of your insurance policy.

Additionally, you may want to request a "Canadian non-resident inter-provincial motor vehicle liability card" from your insurer. This document serves as proof that your U.S. policy covers you while visiting Canada and can be requested from your insurance agent.

If you are renting a car in Canada, you will need a valid driver's license and a credit card. You will also need liability coverage, which you can purchase directly from the rental company or use secondary coverage, such as from a credit card or your personal insurance.

Rental car insurance in Canada

Rental car insurance is not mandatory in Canada, but it is important to have ample insurance to cover you in case of an accident. Third-party liability coverage is a requirement for operating a vehicle in Canada. The legal minimum is often included with your rental car, but always be sure to double-check.

Rental Car Insurance Basics

In many cases, you may already have rental car insurance through one of these options:

• Your personal car insurance
• Complimentary coverage that comes with your credit card
• Coverage through your travel insurance

Rental Car Insurance Options

When speaking with a customer service representative at the rental office, you will likely be told about four options for car rental insurance:

• Loss Damage Waiver (LDW) / Collision Damage Waiver (CDW): This waiver covers the rental car itself and nothing else. Having this coverage means that if anything happens to the car (such as fire, theft, or accident), the costs will be paid for. This is similar to comprehensive and collision insurance in regular auto policies but for rental vehicles.
• Personal Accident Insurance (PAI): Provides accidental death and dismemberment coverage to the driver and any passengers in the car at the time of the accident.
• Personal Effects Coverage (PEC): Pays for your personal property if it’s lost, damaged, or stolen while you’re travelling with your rental vehicle. It’s usually bundled as an extra feature of PAI and isn’t something you pay for separately.
• Liability Coverage (LI): Covers you for damage and injury you may inflict on other people and their property while driving a rental car.

Additional Protection Products

Rental companies may offer additional protection products that you can purchase along with your rental vehicle, such as:

• Damage Waiver (DW): Reduces the renter's responsibility for loss of, or damage to, the rental vehicle.
• Personal Accident Insurance (PAI): Provides accidental death, accident medical expenses and ambulance expense benefits.
• Personal Effects Coverage (PEC): Insures the personal effects of the renter, additional drivers, or any members of the renter's immediate family who are travelling with the renter against risks of loss or damage.

What to do if you're in an accident in Canada

If you're in a car accident in Canada, the first thing to do is to check if anyone in your vehicle is injured. If another car is involved, check on the other driver and any passengers. If everyone is safe, move the vehicles out of the flow of traffic if possible. Alert the authorities, gather information, and start the claims process.

Call 911 and wait for the police to arrive. Answer their questions and provide your driver's license and insurance information. Tell the police exactly what happened, sticking to the facts. Ask for the name and badge number of all officers you engage with, and request a copy of the police report for your insurance company. If the police can't attend the scene, exchange information with the other driver, and file a report yourself at your local police station or department of motor vehicles.

Take pictures of the damage to your vehicle and any other vehicles involved. Gather images from multiple angles to show exactly where the impact occurred. These images can help your claims representative determine who is at fault. Get the name, address, phone number, and insurance information of the other driver. If possible, swap other information such as car makes and models, driver's license numbers, and license plate numbers. If there are witnesses, get their contact information too.

Inform your car insurance company that an accident has occurred. You can then choose to file an auto insurance claim with your insurer or the other driver's. You can file a claim by calling your insurance company, or by logging in to your account online.

If you are injured, seek medical attention. Even if you don't think your injuries are serious, it's a good idea to see a doctor as some injuries don't show symptoms until several hours or even days later.

Frequently asked questions