Canadian Auto Insurance VS U.S. Auto Insurance
Here’s what you need to know.
- Canada and the United States have many similar requirements for auto insurance
- Both countries require proof of auto insurance as well as require a minimum amount of liability coverage
- Canada and the U.S. also have many differences for auto insurance
- In some Canadian provinces, the government, not the insurance company, pays injury claims
- The search process for insurance remains the same in both countries
When you move from one country to another, you will find that the laws for car insurance will vary. For example, laws concerning Canadian auto insurance and U.S. auto insurance are different, even though these two countries are right next to each other.
Read on to learn the similarities, the differences and how to save money on car insurance in either nation. Then enter your ZIP code for your FREE online car insurance quotes today!
Canadian vs. U.S. Auto Insurance: Similarities
Despite the fact that there are many differences between these two countries, they both have some things in common:
- It is required for any driver to have auto insurance, or at least proof of ability to pay for damages, or it is illegal for them to drive. Also, in both countries, you receive an insurance card when you purchase your car insurance.
- In most states you are required to show your insurance card on demand, which is also a requirement in Canada. Much like in the U.S. it is rare for the Canadian police to pull someone over simply to check their insurance coverage.
- Also, in the U.S. there are no-fault states that don’t allow drivers to sue if an accident occurs due to negligence. In Canada, there are several provinces with this same policy.
- Both countries have liability limits. In the U.S. the state sets the liability requirements. The Canadian government sets the liability requirements in all provinces, however, so the minimum requirement doesn’t vary.
- If you cause an accident in the U.S. or Canada, your insurance is required to cover the cost of paying the damages. Also, if you don’t purchase comprehensive coverage, then your vehicle will not be repaired.
- You will also find that both the U.S. and Canada have heavy competition regarding selling insurance. There are different options for coverage types, price differences between companies, and more.
- Both Canadian and U.S. citizens will find that they can save money on their insurance by choosing a larger deductible for their insurance policy. Also, there are discounts for good drivers, experienced drivers, and so on in each of these countries.
- Insurance companies are required to be licensed to sell insurance by Canadian province just like insurance companies in the U.S. Naturally, someone in either country looking for insurance has to determine whether or not a company is licensed to sell to them.
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Canadian vs. U.S. Auto Insurance: Differences
One major difference between Canadian auto insurance and U.S. coverage is that in some provinces in Canada, like Quebec, your insurance company does not pay your injury claim, the Quebec government does. Notice the stipulation to that is a claim for an injury.
The private insurer continues to pay any claims for the damage made to the vehicle in the course of an auto accident.
This type of injury claim varies between provinces.
There are other significant differences between the provinces and the states:
- The name of an insurance card in Canada is a bit different. It is called a Canadian Interprovincial Motor Vehicle Liability Insurance Card or pink card for short!
- Another interesting difference is that, in Canada, if a car is registered then it is considered to be insured. If a Canadian driver stops paying his insurance, then his vehicle automatically becomes unregistered, and the driver is driving illegally.
- An impressive difference between these two countries is that some Canadian provinces require more than liability coverage for any vehicles on the road. In the U.S. liability is the only required coverage unless you have a lender that requires more coverage as part of your loan contract.
Canadian vs. U.S. Auto Insurance: Saving Money
The good news is that saving money in either country is the same. You can get free car insurance quotes from multiple car insurance companies by using a free quote tool online.
In addition, you can visit individual car insurance company websites to get a quote, although that method is more time consuming.
In many cases, you will find that there are major insurance companies that sell insurance in both the U.S. and Canada. So if you are making a move to a new country, you may be able to stay with the company you are both familiar and comfortable with.