New to Canada? You may be looking into acquiring a driver’s licence soon after you arrive. One true thing, no matter where you decide to relocate to in Canada, is that all drivers must have a valid insurance policy to drive. It’s a legal obligation. You are also required to have at least the minimum coverage as defined by the province you reside in. But how much do you need? We have compiled a guide to auto insurance for immigrants new to Canada. Let’s look at how to qualify, whether your previous driving history is valid, and how to save money on your car insurance.
What Is Auto Insurance For Immigrants?
Auto insurance for immigrants in Canada is a car insurance policy purchased by newcomers who hold a valid Canadian driver’s licence or an eligible foreign licence. Insurance companies may consider previous driving and insurance experience from another country when calculating premiums, helping some newcomers qualify for lower rates.
New To Canada: Why You’ll Need Car Insurance To Drive Legally
Car insurance is mandatory in Canada, but coverage and rates can vary among provinces and insurance companies. Auto insurance protects you from having to pay for car repairs in case of a collision or liability claim, such as damage to another person’s vehicle or bodily damage. However, it is not a criminal offence. Ontario’s Compulsory Automobile Insurance Act states, “subject to the regulations, no owner or lessee of a motor vehicle shall operate the cause or permit the motor vehicle to be operated on a highway unless the motor vehicle is insured under a contract of automobile insurance.” Therefore, it’s a serious offence to operate a vehicle without insurance.
While you are not committing a criminal offence and no demerit points are involved, you’ll face some serious penalties:
- Your fine for driving without a licence starts at $5,000.
- The Ontario car insurance regulator, FSRAO, will charge an additional 25% surcharge to your fine.
- Your licence suspension lasts for a minimum of 30 days and up to a year.
- Possible impoundment of your vehicle for three months.
If caught driving without insurance in Ontario, you can face a fine of $5,000 to $25,000 for the first offence. If you are caught a second time, fines can reach $50,000. As a result, you can have your licence suspended and your vehicle impounded. This is why auto insurance for immigrants is crucial to drive successfully (and legally) in Ontario.
Drive with Confidence
Request your free car insurance quote now and get the coverage you deserve.
Auto Insurance For Immigrants To Canada: A Breakdown
To acquire auto insurance for immigrants in Canada, there are several progressive steps you’ll need to follow to secure insurance once you move here. Steps can vary somewhat based on the province you live in:
1. Check Your Qualifications
It’s always best to check what paperwork you will need before you move. For example, proof of insurance, licensing, and other documents are much easier to obtain while you are still in your home country rather than trying to acquire them after moving.
2. How New Immigrants Can Get A Driver’s Licence
Apply to exchange your current driver’s licence for a Canadian one. Check your province’s website to see if you qualify, and what level of licence you’ll receive. Take the proper written and driving tests, if necessary. Some global insurance companies might honour the driving experience of customers who held a policy in their country of origin. You would receive a Canadian-equivalent driving record of a maximum of three years, provided you obtain an Ontario G-class licence, and you have had a licence in your originating country for three years or more.
When moving to Ontario, you can use your foreign driver’s licence for 60 days. After that, you need to exchange it for an Ontario driver’s licence if you want to continue driving. While you may be given credit for previous years of driving experience, from an insurance perspective, your driving record begins the day you get your Canadian driver’s licence. In Ontario, the Ministry of Transportation (MTO) currently allows those from the following countries to switch to an Ontario driver’s licence:
- United States
- Australia
- Austria
- Belgium
- France
- Germany
- Great Britain
- Hungary
- The Isle of Man
- Japan
- South Korea
- Netherlands
- New Zealand
- Northern Ireland
- Republic of Ireland
- Switzerland
- Taiwan
To learn more about what you need to apply for an Ontario driver’s licence, please click here.
3. Steps To Compare Auto Insurance In Canada
Is My Insurance History Valid In Canada?
Yes. In most situations, your previous insurance history will be valid. Before moving, speak with your insurance company and get a copy of your insurance history. Most Canadian insurers will recognize your experience and classify you accordingly if you provide them with proof. While this may seem like an extra step, it will prove you’re a safe driver and help you save money on your policy.
How Much Can I Expect To Pay for Insurance As An Immigrant To Canada?
Auto insurance for immigrants is often more expensive due to unfamiliarity with Canadian roads and traffic, and a higher likelihood of being involved in an accident or receiving a traffic violation. Some insurers do take your experience from other countries into account, which can help lower your premiums. This is why having proof of your insurance history from your previous country is important.
Not only for procuring a licence, but also for lowering your premiums. It is important to note that a person relocating from a country with a reciprocal agreement with Ontario can obtain an Ontario driver’s licence without going through the regular process, which can take more than two years.
4. Buying Car Insurance As A Newcomer In Canada
Once you have the proper licence and supporting driving and insurance history, you can purchase your auto insurance policy. Choosing an insurance plan takes time and consideration. You’ll want to ensure a policy that best meets your budget and driving needs. Buying insurance varies across Canada. In some provinces, like British Columbia, you can get insurance through the government.
However, in most provinces, you are insured by private insurers. Your isure broker can help you to compare quotes from multiple insurers all at once in the province of Ontario.
Saving Money On Insurance As A Newcomer To Canada
As a new driver in Canada, you have many policy options to choose from. All Ontario auto plans include:
- Third-party liability
- Accident benefits
- Direct compensation for property damage
- Liability protection for uninsured drivers
You can choose to increase your coverage limits and add collision, comprehensive, and other forms of protection to customize your policy. Our isure representatives can help you customize coverage that best suits your individual needs.
Tips When It Comes To Saving On Your Premiums
- Graduate to a G licence as soon as possible: Make sure you don’t sit on your G2 for long. Get your G licence as soon as possible! By graduating as quickly as possible to your full licence, you can lower your insurance rate.
- Consider being added as a secondary driver to someone’s policy: If there is another car in your household, see if you can be added to the policy as a secondary driver. This is another way to build up driving experience. If you lease or own the car in your name, you are the primary driver.
- Choose your car carefully: Choose a vehicle that is considered insurance-friendly. These vehicles have good safety ratings, lower repair costs, and are not commonly targeted by thieves.
- Increase your deductible: The higher your deductible, the lower your premium will be. But a higher deductible also means having enough money set aside in case of a claim.
- Invest in winter tires: In Canada, not only do they protect you against wintry terrain and climate conditions, but winter tires can earn you a discount on your car insurance. By law, insurance companies are required to offer you a 2-5% discount once informing them that you have winter tires.
- Bundle your home and auto insurance: As you settle into your new life in Canada, there are multiple insurance products you will need. One way to save money on insurance is to bundle your home, condo, or tenant insurance with your auto insurance by purchasing both from the same insurance provider. Depending on the company, you can save up to 15%
Bundle All of Your Policies for Maximum Savings!
Speak with an isure broker to find out how.
Frequently Asked Questions About Auto Insurance For New Immigrants In Canada
Can immigrants get car insurance in Canada?
Yes. New immigrants can purchase car insurance in Canada once they obtain a valid driver’s licence and meet the insurer’s eligibility requirements. Most insurance companies will also consider your previous driving and insurance history if you provide supporting documentation.
Is foreign driving experience recognized in Canada?
Yes. In many cases, Canadian insurers may recognize your previous driving experience if you provide proof from your home country. Depending on the province and insurer, this can help reduce your insurance premiums.
How much is car insurance for newcomers to Canada?
The cost varies based on your province, driving experience, vehicle, and insurance provider. Newcomers often pay higher premiums initially, but rates may decrease if you can provide proof of previous driving and insurance history.
Do I need car insurance before buying a vehicle in Canada?
Yes. You typically need proof of insurance before registering a vehicle and legally driving in Canada. Most dealerships and registration offices require confirmation that the vehicle is insured.
Can I drive in Ontario with a foreign driver’s licence?
Yes, you can legally drive in Ontario with a valid foreign driver’s licence for up to 60 days after arriving. After this 60-day grace period, you must exchange your licence or apply for an Ontario driver’s licence to continue driving.
What is the legally required minimum auto insurance in Ontario?
Ontario drivers must carry third-party liability coverage, accident benefits, uninsured automobile coverage, and direct compensation property damage coverage.
Newcomers can lower premiums by providing proof of driving experience, obtaining a full G licence, installing winter tires, choosing a vehicle with lower insurance costs, increasing deductibles, and bundling insurance policies.
Start Your Driving Journey In Canada With Confidence
Navigating the Canadian auto insurance system as a newcomer can feel overwhelming, but understanding the requirements and preparing the right documentation can make the process much easier. From transferring your driving experience and obtaining the correct licence to comparing insurance options and finding ways to save on premiums, taking the time to research your choices can pay off in the long run.
Whether you’re purchasing your first Canadian auto insurance policy or looking for the best coverage at the right price, working with an experienced insurance broker can help simplify the process. With the right protection in place, you’ll be ready to hit the road confidently and begin your new life in Canada with peace of mind.
Whether you are buying a car, or borrowing parents’ vehicles, Read more
New to Ontario and not sure of basic driving rules? Read more
One of the first things many newcomers to Canada do Read more
