A Buyer's Guide to Car Insurance for New Immigrants in Canada

Canada is commonly referred to as a "melting pot" for a reason — it's one of the most culturally diverse countries on the globe. Countless people immigrate to Canada in search of an education, job opportunities or a change of scenery.

If you've recently immigrated to Canada from a foreign country, let us be among the first to welcome you to your new home! In order to get around your new home, you'll need a vehicle, a valid driver's license and, of course, car insurance.

START A QUOTE

But, this is often easier said than done — if you're new to Canada, you may not be familiar with how car insurance works. That's where we come in. In this article, we'll discuss the ins and outs of car insurance in Canada for new immigrants and do our best to answer any questions you may have.

Why do new immigrants need to get car insurance in Canada?

Car insurance is legally required in all Canadian provinces and territories.

Drivers who get caught travelling without sufficient insurance can expect a fine ranging from $5,000 to $25,000. Getting caught driving without car insurance for a second time can lead to the following consequences:

• Fines ranging from $10,000 to $50,000
• Loss of driver's license (up to one year)
• Loss of vehicle (impounded for up to three months)
• Potential increase in car insurance rates

That being said, you can see why immigrants need to get car insurance if they want to drive in Canada.

Types of car insurance in Canada

When it comes to car insurance for new immigrants Canada has several options — if you're new to Canada, you should be aware of the following types of coverage:

• Liability
• Collision
• Comprehensive
• Loss of use

Liability insurance

Liability insurance is a type of car coverage that financially protects drivers after being involved in an incident that damages another driver's property or results in an injury/death.

Canadian drivers need to purchase liability insurance; however, the minimum requirement varies from province to province.

Collision insurance

Collision insurance is a type of car coverage that financially protects drivers after colliding with another vehicle or object on the road. As a reminder, collision insurance financially protects the drivers regardless of who is deemed "at fault" (an insurance term which means responsible for an event).

Comprehensive insurance

Comprehensive insurance is a type of car coverage that protects drivers from unforeseen events that occur off the road. For instance, if a windstorm causes a tree to fall on your brand new car, your comprehensive insurance would cover the repair bill.

Drivers can combine collision and comprehensive insurance; this is referred to as obtaining full coverage.

Loss of use insurance

Loss of use insurance is a unique type of car coverage that covers transportation costs after your vehicle gets damaged in an accident. Some examples of these costs include rental car fees and car-sharing expenses.

How can new immigrants save money on car insurance in Canada?

There are endless ways to save on car insurance in Canada, even if you've recently moved here. Some common (and effective) methods for decreasing your car insurance rates include:

Increase your car insurance deductible

As you likely know, your insurance deductible is the set amount that you pay your provider when you submit a claim.

Generally, your car insurance provider will decrease your rates if you choose to increase your deductible. Increasing your deductible can help you save anywhere from 15% to 30% on your collision insurance.

With all of that being said, if you decide to increase your deductible, be prepared to pay more if you submit a claim.

Drive safely

Driving safely is one of the simplest and most effective ways to lower your car insurance rates as a new immigrant.

Although it will take some time before the savings kick in, maintaining safe driving habits can help you decrease your car insurance expenses over time.

Use an online insurance broker

Have you ever worked with an online insurance broker before?

If not, here's a quick refresher: an insurance broker is an expert who helps policyholders save money on coverage by providing personalized quotes.

Unlike insurance agents (who work directly for a provider), insurance brokers work for you. This means they always have your best interests in mind and never have a hidden agenda.

Do you want to start saving on car insurance in Canada? Contact one of our Surex insurance advisors to learn how we can help you save up to 25% on car insurance!

Is your foreign insurance history valid in Canada?

Most of the time, yes, your insurance history is valid in Canadian provinces and territories.

But, Canadian car insurance providers can't simply take your word for it; you need to be able to prove it.

Before leaving your home country, you need to contact your car insurance provider and ask them for a copy of your insurance history. If you have a copy of your insurance history, your new provider will likely honour your road time.

Doing this may add an extra step to the moving process, but it helps confirm that you’re a safe and responsible driver (which means that you'll have to pay less for car coverage).

Is your foreign driver's license valid in Canada?

The answer to this question depends on your past location.

Several countries have an agreement with the Canadian government, which allows newcomers to obtain a valid driver's license without going through the entire process. The newcomer must have the equivalent documentation from their home country to obtain a license in Canada.

Some of the countries include:

• The United States
• Korea
• France
• Australia

Do you still have questions about auto insurance for new immigrants Canada?

Whether you're planning on moving to Canada, or have recently moved, one of your top priorities should be obtaining car insurance. Driving without car insurance is an enormous risk that's never worth taking.

If you have additional questions about getting car insurance as an immigrant, don't hesitate to contact one of our insurance brokers. Our team can get you on the right track and have you on the road in no time.

*Please note that certain provinces, like Ontario, do not accept international licenses, whereas other provinces, like Alberta, allow drivers to exchange their licenses under certain circumstances. Speak with your Surex insurance advisor to learn more.*