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Car Insurance

Berty3000

Star Member
Jan 17, 2017
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I just read about a German couple who bought a minivan to travel across Canada, but then discovered that the insurance would cost them 7500CAD! They would be using German licences on a leisure trip. So they are now selling the van...

- Why was their insurance quote so high?
- Would it be more "normal" for a PR who gets their licence exchanged?

I am planning to touch down and then do a road trip for a couple of months to find out more about Canada, so was going to buy a vehicle. I do not need to exchange my licence for 3 months as I understand it. Am I going to be ripped off on insurance like that couple? How can I avoid this?

Many thanks
 

NetMecca

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Dec 12, 2013
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High insurance is not driven by whether you are citizen, PR or work permit. Factors typically are driven by vehicle, and person specific things like age and accident history.

Seems odd. I would not worry about this to much.

Good luck
 

Berty3000

Star Member
Jan 17, 2017
166
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High insurance is not driven by whether you are citizen, PR or work permit. Factors typically are driven by vehicle, and person specific things like age and accident history.

Seems odd. I would not worry about this to much.

Good luck
I think the licence does make a difference. So exchanging a UK licence for an ontario one first is going to make a big difference. Does anybody know how long this exchange process takes? Also, would exchanging my licence to an ontario one allow me to drive across Canada? Or would I be in the ridiculous situation of needing to exchange my licence in every province? The uk has an agreement with all of the provinces bordering the USA.
 

NetMecca

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My suggestion is to get an international drivers license before you come here. That solves the license issue initially. I did that. Had no issue with insurance or driving anywhere in Canada. Have proof of how long you have held a license also. If you have only been driving for 1 year, maybe that will make a difference to insurance cost, but not sure. Haven't heard anything to confirm that.

Depending on international agreements you may not be able to just convert your license to a Canadian one. You may have to redo a driver's test in Canada. Have a peek at the driver license conversion requirements for immigrants on the website for the province you will be living in. If you can convert as you suggest, you should be able to walk in and out, pretty much. Generally not a complicated process.

You only need a drivers license in the province where you reside. That license can be used to drive anywhere in Canada
 

sistemc

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Feb 2, 2014
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The main problem is that by default Canadian insurance companies do not honor your car insurance history from other country.

You might see a broker in person and try to convince him that you are a trustworthy person - it might help, good luck.

I find Canadian car insurance premiums, and Canadian mobile phone plans ridiculously expensive. A good portion of real competition is needed, what we have now is oligopoly.
 

One chance

Member
Apr 3, 2017
14
6
Insurance companies in Canada are the killjoys of enjoying a car. Why are they so expensive? Why have Canadians simply accepted these exorbitant costs? I cannot understand. No rewards for being accident free or free of demerit points. Canadians have no complaints on this topic. Only me- the newcomer to Canada.
 

One chance

Member
Apr 3, 2017
14
6
Even when you rent a car, they often ask you to pay for insurance. Because of insurance, you cannot borrow your best friend's car in an emergency as you are not covered for that car. Your friend has to make time to drive you himself to where you need to go.
 

steaky

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Nov 11, 2008
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The main problem is that by default Canadian insurance companies do not honor your car insurance history from other country.

You might see a broker in person and try to convince him that you are a trustworthy person - it might help, good luck.

I find Canadian car insurance premiums, and Canadian mobile phone plans ridiculously expensive. A good portion of real competition is needed, what we have now is oligopoly.
In BC, car insurance is a monopoly. The crown company honor your car insurance from other country.
 

steaky

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Even when you rent a car, they often ask you to pay for insurance. Because of insurance, you cannot borrow your best friend's car in an emergency as you are not covered for that car. Your friend has to make time to drive you himself to where you need to go.
Not necessary. You can still borrow his car. When accident happen, you will need to deal with.
 

NetMecca

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Dec 12, 2013
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Some insurers will honor at least some foreign driving history. Mine did accept at least 3 years worth. Shop around if you can. Broker can help you with that, so mostly you would be better off to deal with a broker, rather than direct with an insurer.

Regarding a friends' car. The insurance covers the car (if bought) and the liability associated with using the car, not the person (unless there are designated drivers on the policy (and even then some exceptions may apply). The only issue with driving a friend's car is consent. You must have the friend's consent (verbal is fine) otherwise it is considered theft. You must have a valid driver's license (international license of local canadian).

That's pretty much it.

Good luck