Canada Car Insurance For New Immigrants: There’s a reason why Canada is called a “melting pot”: it’s one of the world’s most culturally diverse places to live. A lot of people move to Canada to get an education, find work, or just change their settings.
We want to be one of the first people to welcome you to Canada if you have just moved here from another country. A car, a legal driver’s license, and, of course, car insurance are all things you’ll need to get around your new home.
But this isn’t always easy to do. For example, if you’re new to Canada, you might not know how car insurance works. This is where we come in. We’ll talk about everything you need to know about getting car insurance in Canada as a newcomer and do our best to answer any questions you may have.
Why do people immigrants in Canada need car insurance?
In every state and territory in Canada, you are required by law to have car insurance.
People who are caught driving without enough insurance can expect to pay a fine of $5,000 to $25,000. Here are some things that can happen if you get caught driving without insurance a second time:
- Fines between $10,000 and $50,000
- Not being able to drive for up to a year
- Loss of the car (it can be held for up to three months)
- Possible rate hikes for car insurance
So, it’s easy to see why people who want to drive in Canada need to show proof of insurance.
Different kinds of car insurance in Canada
There are different types of car insurance in Canada for newcomers. If you’re new to the country, you should know about these kinds of coverage:
- Loss of use
- Liability insurance
As a type of car insurance, liability insurance covers drivers financially if they cause an accident that hurts or kills someone or damages someone else’s property.
Drivers in Canada are required to have liability insurance, but the minimum amount needed changes from province to province.
Insurance for accidents or Collision
There is a type of car insurance called collision insurance that covers drivers financially after they hit another car or something on the road. To review, collision insurance protects the drivers financially no matter who is “at fault,” which is an insurance word for being responsible for an event.
Full coverage insurance
Comprehensive insurance covers drivers from things that happen off the road that they didn’t expect. If a tree falls on your brand-new car during a storm, for example, your comprehensive insurance would pay to fix it.
It is possible for drivers to get full coverage by combining accident and comprehensive insurance.
Loss of use insurance
Loss of use insurance is a special kind of car insurance that pays for your transportation after an accident damages your car. Fees for renting cars and costs for car sharing are two examples of these kinds of costs.
How can newcomers or Immigrants in Canada save money on car insurance?
Even if you just moved to Canada, there are lots of ways to save money on car insurance. Here are some popular (and effective) ways to lower your car insurance rates:
Raise the deductible on your car insurance.
When you file a claim with your insurance company, you have to pay a set amount. This is called your deductible.
On average, if you raise your deductible, your car insurance company will lower your rates. Depending on the amount you raise, you can save anywhere from 15% to 30% on your accident insurance.
Also, keep in mind that if you raise your deductible, you will have to pay more if you need to make a claim.
Be careful when you drive.
Being a safe driver is one of the easiest and most effective ways for new immigrants to lower their car insurance rates.
Practising safe driving can help you save money on your car insurance over time, though it will take a while before you see the results.
Use an online insurance company
An online insurance agent is an insurance broker is a professional who gives clients personalized quotes and helps them save money on coverage.
Insurance traders do not work for the insurance company like insurance agents do. In other words, they will always look out for your best interests and never have a secret plan.
Is your foreign insurance history valid in Canada?
A lot of the time, your insurance past is good in all of Canada’s provinces and territories. Canada’s car insurance companies won’t believe you if you say so; you have to be able to show proof.
You should call your car insurance company and ask for a copy of your insurance records before you leave your home country. It’s possible that your new insurance company will honour your road time if you show them a copy of your old quote.
This may be an extra step in the moving process, but it helps prove that you’re a safe and responsible driver, which means Canada Car Insurance For New Immigrants will cost less.
Can you drive in Canada with a license from another country?
The answer to this question rests on where you were before. The Canadian government has a deal with a number of countries that lets newcomers get a valid driver’s license without having to go through the whole process. To get a license in Canada, the visitor must have the same paperwork from their home country.
These are some of the countries:
- The US
- New Zealand
- Mandatory Car Insurance for Immigrants
- Types: Liability, Collision, Comprehensive, Loss of Use
- Money-Saving Tips
- Raise Deductibles, Drive Safely
- Use Online Providers
- Validating Foreign Insurance History
FAQS for ‘Canada Car Insurance For New Immigrants’
1. Do I need car insurance as a new immigrant in Canada?
Yes, car insurance is a legal requirement in every province and territory in Canada. New immigrants are no exception.
2. What types of car insurance are available in Canada?
Canada offers various types of car insurance, including Liability, Collision, Comprehensive, and Loss of Use insurance.
3. How can I save money on car insurance as a newcomer in Canada?
You can save on car insurance by raising deductibles, driving safely, and considering online insurance providers. These methods can help reduce your premiums.
4. Is my foreign insurance history valid in Canada?
Your foreign insurance history may be valid in Canada, but you’ll need to provide proof to your new insurance company. Contact your previous insurance provider for relevant records.
5. Can I drive in Canada with a foreign driver’s license?
Whether you can drive in Canada with a foreign license depends on your home country. Canada has agreements with certain countries that allow newcomers to use their existing licenses. Check if your country is on the list.
6. What happens if I drive without insurance in Canada as a newcomer?
Driving without insurance in Canada is illegal, and penalties can be severe. You may face fines, license suspension, loss of your vehicle, and increased insurance rates.
7. How can I choose the right type of car insurance for my needs as a newcomer?
It’s advisable to consult with an insurance agent or broker who can help you assess your needs and find the appropriate coverage based on your situation.
8. Do I need to get Canadian insurance immediately upon arrival, or can I use my foreign insurance for some time?
The need for Canadian insurance varies, and it’s essential to check with the local authorities and your insurance provider. In some cases, you may have a grace period to switch to Canadian insurance.
9. Are there government programs or subsidies for newcomers to help with car insurance costs?
Some provinces may offer programs or subsidies to assist newcomers with insurance costs. You should inquire with local government agencies or community organizations to see if you’re eligible for any assistance.
10. How do I prove my foreign insurance history to my Canadian insurance company?
Contact your previous insurance provider in your home country and request a copy of your insurance records or history. Provide this documentation to your new Canadian insurance company to demonstrate your insurance history.