Out of Province Car Insurance: How Does It Work?
Whether it’s brand-new, vintage, or somewhere in between, there’s no denying that purchasing a vehicle is exciting. After searching and saving for years, nothing feels better than hitting the open road in your new ride.
However, if you’re struggling to find the ideal vehicle in your hometown or city, then it may be time to expand your search to other Canadian provinces and territories. Doing this is a great way to find different options; not to mention, travelling to a new place is always a fun adventure.
If you’re thinking about buying a car in a different province or territory, you should take the time to educate yourself on the lesser-known details of the process. Doing this minimizes the chances of overlooking an important step or piece of information.
START A QUOTEIs it legal to purchase a vehicle from another province?
Yes, buying a car out of province is entirely legal, as long as you take the time to fill out the necessary paperwork and meet the specific requirements.
Drivers need to remember that each province and territory has its own regulations regarding outside vehicle sales. Be sure to familiarize yourself with the rules of your province and the province where your prospective vehicle is located. Doing this will ensure that you follow the rules correctly.
How to buy a vehicle from a different province or territory
Canadian drivers need to complete the following steps to purchase a vehicle from a different province or territory:
Verify the sale with the seller
Although Canadians can legally purchase and drive vehicles from other provinces, not all dealerships can make out of province sales. If you’re buying your car from a dealership, be sure to confirm that it can, in fact, conduct business out of province.
Similarly, if you’re purchasing a vehicle from a private seller, it’s wise to verify that they are comfortable making an out of province sale. Doing this will ensure that the seller is prepared and has enough time to make the necessary arrangements.
Confirm the price of the vehicle
Doing this is an extremely vital part of the vehicle-buying process and shouldn’t be overlooked.
If you’re purchasing a vehicle from a private seller, they may try to haggle with you, which can be difficult if you haven’t seen the car in person.
To get an idea of what you should pay for a vehicle, you compare the car to similar models in nearby cities or provinces. If you don’t feel comfortable paying the advertised price after researching, you should consider looking elsewhere for a vehicle.
Thankfully, it’s much easier to verify the price of a vehicle if you’re buying it from an out of province dealership.
Car dealerships have set prices for their products, with a little bit of wiggle room for discounts. Because of this, the price you see online or in the newspaper is the price you’ll end up paying. However, there are a handful of tricks you can use to potentially get a bargain on your new car.
Verify consumer protection laws in both provinces or territories
Are you familiar with consumer protection laws? These are regulations that protect Canadian consumers and public safety.
Before purchasing a vehicle from another province, we highly suggest researching the consumer protection laws in your province and the province where your prospective vehicle is located. Doing this will protect you from potential scams or illegal activities.
Here’s an example — let’s imagine that you found a prospective vehicle in Alberta, but the current owner wants you to pay for half of the car upfront. Upon arrival, you realize that the original owner has tricked you into paying for a vehicle that never existed. In this scenario, the consumer protection laws can help you get remuneration.
Obtain the vehicle
Once all of the previously listed steps have been taken care of, it’s time to get your new vehicle. If you’ve purchased the car from a private seller, you’ll likely be asked to pick up and pay for it in person. On the other hand, if you’ve purchased a vehicle from an out of province dealership, they may be able to ship it to you (for an additional fee).
FAQs about out of province car insurance in Canada
Here are some of the most common questions about out of province car insurance Ontario drivers have asked our team:
Do you need to have insurance for the drive home?
Yes, drivers are required to purchase temporary insurance and registration if they’re returning to their home province in a vehicle they’ve recently obtained out of province.
Temporary insurance generally costs between $50 and $300. The length of the trip influences the total price.
Feel free to reach out to your auto insurance provider if you have any specific questions about temporary auto coverage and registration.
A quick phone call or conversation with your insurance agent can drastically minimize the chances of you making an avoidable mistake.
Does buying an out of province vehicle influence my insurance rates?
No, this is one of the many driving myths that you may hear on the road. The fact that your vehicle is from another province shouldn’t influence your insurance rates.
However, if the vehicle is a luxury model, it will cost more to insure than a regular car.
How does insuring an out of province vehicle differ from an in-province car?
The two processes are practically identical; to insure an out of province vehicle, you must fill out the necessary documents online or with your insurance agent. You’ll then be required to make an upfront payment (this total varies from driver to driver), followed by regular fees. Once your payment is confirmed, you can legally drive your new car.
Is buying a vehicle from another province worth the effort and time? We think so
Whether it’s your dream car or a simple mode of transportation, the perfect vehicle is always worth the effort, even if it’s in another province. However, before you jump into the process, it’s beneficial for Canadian drivers to know the minute details about buying an out of province vehicle.
