About Car Insurance in Canada
Car insurance is one of the most important purchases you’ll make as a Canadian driver.
According to Auto Insurance Coverage, Canadians spent almost 24 billion Canadian dollars on auto insurance in 2018, and the figures have gone crazily higher since that time, which proves how important the industry is to them.
Every province and territory in Canada requires you to own car insurance before you can drive, and the costs of car insurance have increased 12.2% nationally compared to this same time last year.
The cost varies significantly across the country. People in British Columbia pay the highest premiums for car insurance at an average of $1,832 each year, they are followed by Ontario and Alberta with reported annual earnings of $1,515 and $1,316.
In Quebec, you can find car insurance for an average annual rate of $717, as pointed out by the Made in CA report for 2024.
If an accident happens, you, your passengers, and others involved are taken care of. The cost only started getting this huge ever since Canadian insurers paid more than $1 billion in car theft claims in 2022, as noted by the Insurance Bureau of Canada.
What is car insurance
Car insurance is a contract between you and an insurance company that protects you from financial loss if something happens to your vehicle.
You pay a monthly or yearly fee called a premium, and in return, the insurance company covers certain costs related to accidents, theft, or damage to your car.
Think of car insurance as something that secures your financial safety. Otherwise, you’d have to deal with the cost of thousands of dollars for damages or theft if you did not have any coverage.
All drivers in Canada are required by law to have insurance, but the requirements are different from one province to another.
The insurance company considers your age, past driving mistakes, and your history to determine how risky you are on the road.
This risk assessment by the company determines how much your premium will be. Those who are seen as low-risk drivers usually pay less for car insurance than those with several accidents or tickets.
Your car insurance policy is an official legal document or contract that describes everything that’s covered and not covered.
Your insurance policy offers information about your coverage limits, deductible amounts, and any special conditions that apply to your policy. You have to read and understand your policy to know exactly what benefits your insurance protection covers.
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- Buy online or over the phone
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- Flexible Payment Options
- Deductible decreases $50 for each claim-free renewal
- Affordable legal advice & representation
- 24/7 Roadside Assistance
- 2-Year Policy Option
- Manage it all online
How to compare car insurance
Here are the steps you need to follow to get the best car insurance:
- Get quotes from at least three different companies: Prices can vary significantly between insurers for the same coverage, so it’s advisable to check and compare the quotes from different companies.
- Compare coverage types and limits: Compare the types of coverage from different insurers and everything that they cover, and review the overall costs.
- Look at deductible options: Higher deductibles usually mean lower premiums, while lower deductibles equal higher premiums. So, examine the deductible options carefully and choose according to what suits your needs and financial capability.
- Check customer service ratings: Good service matters when you need to file a claim, so check for reviews and ratings on customer service before you decide.
- Review financial stability ratings: When choosing a car insurance company, you want to know that the company you choose can pay claims reliably.
Online comparison tools
Online platforms give you an easy way to check several car insurance quotes at once. These tools let you type your information just once, and then you receive quotes from several car insurance firms.
Because many Canadian websites offer this service for free, finding the best auto insurance rates near you is super easy.
Working with a car insurance broker
A car insurance broker works with multiple insurance companies and can help you find the best coverage for your situation. Brokers know which companies offer the best rates for different types of drivers.
They can also explain complex coverage options and help you understand what you’re buying.
Reading the fine print
Always read the policy details before buying car insurance. Look for exclusions, coverage limits, and any special conditions that might affect your coverage.
Pay attention to what’s not covered and ask questions if anything is unclear.
Who needs car insurance?
Anyone who drives or owns a vehicle in Canada needs car insurance. This requirement applies to different groups of people and situations.
- All vehicle owners: If you own a car, truck, motorcycle, or other motor vehicle, you need insurance
- Regular drivers: People who drive someone else’s vehicle regularly should have coverage
- Occasional drivers: Even if you only drive sometimes, you need to be covered under a policy
- New drivers: Getting your license means getting car insurance right away. New drivers usually pay higher premiums since they have no driving history to prove they’re safe drivers. Taking driver education courses and maintaining a clean driving record helps reduce these costs over time.
- Business vehicle users: Commercial drivers need special business coverage
- Senior Drivers: Older drivers may see their car insurance rates increase after age 65 or 70, depending on the insurance company. Some insurers offer discounts for seniors who take refresher driving courses or drive fewer miles per year.
- High-risk drivers: Drivers with accidents, tickets, or other violations on their record are considered high-risk. These drivers need specialized coverage and often pay higher premiums. Some companies specialize in high-risk car insurance and offer more affordable options for these drivers.
When to get car insurance
The timing of when to get insurance depends on your specific situation, but getting coverage early protects you from legal and financial problems. Here’s when you should get car insurance:
- Before you buy a vehicle: Ensure you get insurance coverage before you buy a vehicle. In most cases, you must show your vehicle insurance before you complete registration and get your license plates.
- When you get your driver’s license: New drivers need coverage immediately after getting their license, even if they don’t own a car. Many insurance companies offer discounts if you add a new driver to an existing family policy instead of getting separate coverage. This approach often costs significantly less than buying individual car insurance.
- Before moving to a new province: Make sure to update your car insurance during the time that is required when moving to a new city. Rules about switching your insurance coverage differ by province, usually running from 30 to 90 days. Moving to a new place before updating your insurance can make you unprotected and may be against what is required in your province.
- When financing or leasing a vehicle: When you get a vehicle under a lease or financing agreement, comprehensive and collision insurance are normally required after you pick it up. Purchase this coverage immediately to protect yourself, and follow the loan contract terms, since not having it can result in financial risks.
- Before your current policy expires: Renew or replace your car insurance before your existing policy ends to avoid coverage gaps. Even a single day without insurance can result in fines, license suspension, and higher future premiums due to the coverage gap.
What does car insurance cover
Car insurance covers different types of financial losses related to your vehicle. Understanding what’s included helps you choose the right coverage levels for your needs.
Liability coverage
Liability coverage is the foundation of every car insurance policy in Canada. This coverage pays for damage you cause to other people and their property when you’re at fault in an accident.
For example, most Canadian provinces require you to carry at least $200,000 (CAD) in liability coverage. Exceptions include Quebec, where the amount is $50,000, and Nova Scotia and Manitoba, where the amount is $500,000.
If you hit another car, liability coverage pays for the other driver’s medical bills, car repairs, and other damages up to your policy limit. It also covers legal costs if the other driver sues you.
Without enough liability coverage, you could be personally responsible for paying these costs.
Accident benefits
Accident benefits coverage pays for medical expenses, rehabilitation costs, and lost income if you or your passengers are injured in an accident, regardless of who caused it.
This coverage is mandatory in most provinces and provides essential protection for accident-related expenses not covered by provincial health insurance.
The coverage includes ambulance costs, physiotherapy, prescription medications, and other medical expenses related to your injuries.
It may also provide income replacement if you can’t work due to your injuries, though the amount is usually a percentage of your regular income.
Collision coverage
Collision coverage pays to repair or replace your car if it’s damaged in an accident with another vehicle or object. This coverage applies whether you’re at fault or not, though your deductible amount gets subtracted from any claim payment.
Without collision coverage, you’d pay out of pocket to fix or replace your car after an accident. This coverage is especially important if you have a newer or more expensive vehicle.
In fact, they are mandatory in Saskatchewan and Manitoba, and usually required by the lender (such as a bank) if you have taken out a loan to pay for your car in any other province.
Rental vehicles
Rental car coverage helps pay for a temporary replacement vehicle while your car is being repaired after a covered claim.
This coverage typically has daily and total limits, such as $30 per day up to $900 total. Some policies automatically include this coverage, while others offer it as an optional add-on.
3 types of car insurance
Knowing about the three primary types of car insurance allows you to choose what is best for you. Different types of loans are meant for different requirements and provide unique advantages.
| Type | Who it’s for | Features | Cost |
|---|---|---|---|
| Car Owner Insurance | Vehicle owners | Comprehensive protection, liability, collision, and comprehensive coverage | $1,200-$3,000+ annually |
| Car Rental Insurance | Occasional drivers, renters | Short-term coverage, liability protection | $15-$30 per day |
| Commercial Vehicle Insurance | Business use, delivery drivers | Higher liability limits, business equipment coverage | $2,000-$5,000+ annually |
Car owner insurance
Car owner insurance provides complete protection for people who own their vehicles.
This type of policy includes all mandatory coverages plus optional protections like collision and comprehensive coverage. Most car owners choose this type because it offers the most complete protection.
The policy covers your vehicle, liability to others, and benefits for injuries. You can customize coverage levels and deductibles to fit your budget and risk tolerance.
Car owner insurance also includes coverage for personal belongings stolen from your car and rental car expenses during repairs.
Car rental insurance
Car rental insurance provides temporary coverage when you rent a vehicle. You can buy this coverage from the rental car company or through your regular car insurance company.
Some credit cards also provide rental car coverage as a benefit.
This insurance usually costs around $15-$30 per day, and it covers collision damage, theft, and liability.
Check if your existing car insurance policy extends to rental cars before buying additional coverage, as you might already be protected.
Commercial vehicle insurance
Commercial vehicle insurance covers vehicles used for business purposes. This includes delivery trucks, company cars, and vehicles used to transport customers or goods.
The coverage limits are typically higher than personal car insurance because business use involves greater liability risks.
Commercial policies often include coverage for business equipment, cargo, and hired/non-owned vehicles.
The cost depends on how you use the vehicle, how many miles you drive for business, and what type of cargo you carry.
What car insurance is mandatory
The province of Ontario requires all vehicle owners to have insurance. Therefore, all vehicles that are registered in the province are required by law to have insurance.
The specific requirements are different across provinces, but all Canadian areas require certain basic coverages.
It is standard for car insurance laws to require third-party liability, which gives protection to other people in the event of an accident.
In Alberta, all drivers are required to have at least a third-party liability policy with $200,000 of coverage, Direct Compensation for Property Damage, and Accident Benefits.
Most provinces also require accident benefits coverage, which pays for medical expenses and lost wages if you’re injured in an accident.
This coverage ensures that accident victims receive necessary care regardless of who caused the accident.
Uninsured motorist coverage is mandatory in some provinces to protect you if you’re hit by a driver who doesn’t have insurance or doesn’t have enough coverage to pay for your damages.
This coverage fills the gap when the driver at fault can’t pay. Direct compensation property damage coverage is also required in some provinces and pays for damage to your vehicle when another driver is at fault.
This coverage speeds up the claims process by allowing your own insurance company to handle your property damage claim.
How much does car insurance cost
The cost of car insurance depends a lot on your location in Canada, your type of vehicle, and other personal factors. Here’s what you can expect to pay for car insurance coverage in each province:
Highest cost provinces
- British Columbia: $1,832 annually on average, which happens to be one of the highest in Canada
- Ontario: $1,927 annually on average, with most people paying between $1,500 to $2,500
- Alberta: $1,316 annually on average, or about $191 per month
Mid-range cost provinces
- Manitoba: $1,140 annually on average
- Saskatchewan: $1,249 annually in cities like Saskatoon
- Winnipeg: $1,381 annually
Lower cost areas
- Quebec: Around $717 annually, which is among the lowest in Canada
- Prince Edward Island: Just under $1,000 annually
These provincial differences exist because each province has a different insurance system. British Columbia has seen rates increase by over $700 since 2015, a 63% jump, making it consistently the most expensive province for car insurance.
From December 2019 to December 2024, the median price increased 61.5% for new vehicles and 82.2% for used vehicles. This increase in vehicle values pushed car insurance premiums higher as well, since more expensive cars cost more to repair or replace.
It was estimated by IBC that more than 80,000 cars were stolen in Canada last year. So, having a car in an area with high theft rates, or buying a car that is a popular target for thieves may cost you a lot more for comprehensive coverage.
How to get car insurance
Getting car insurance involves several steps that ensure you get the right coverage at the best price. Following this systematic approach helps you avoid gaps in coverage and saves money:
- Gather your information: Collect your driver’s license, vehicle information, and driving history details.
- Determine your coverage needs: Decide what types and amounts of coverage you want
- Shop around for quotes: Get quotes from multiple insurance companies or brokers
- Compare coverage and prices: Review policy details, not just premium costs
- Choose your insurance company: Select the company that offers the best value
- Complete your application: Provide accurate information and pay your first premium
- Receive your policy documents: Review your policy and keep documents accessible
It is advisable to start the process before you need coverage to avoid rushed decisions. Many insurance companies offer online quotes that give you immediate estimates.
Having multiple quotes helps you negotiate better rates and find companies willing to offer discounts.
You should consider bundling your car insurance with other policies like home or renters insurance.
Many companies offer significant discounts when you buy multiple policies from them. This approach often results in better overall value than buying separate policies from different companies.
How long does it take to get car insurance?
Getting car insurance can take anywhere from a few minutes to several days, depending on your situation and the insurance company you choose. Simple cases with clean driving records and standard vehicles often get processed quickly.
Online applications provide instant quotes and can bind coverage immediately once you complete the application and pay your premium. This process usually takes 15-30 minutes for straightforward situations.
Complex cases involving multiple drivers, expensive vehicles, or poor driving records may require additional review.
Insurance companies might need time to verify information, check driving records, or get additional details about your situation. These cases can take 1-3 business days to complete.
If you need immediate coverage, many insurance companies can provide temporary proof of insurance over the phone or online while they process your full application.
This temporary coverage ensures you can legally drive while waiting for your complete policy documents.
Keep in mind that you’ll need proof of insurance before you can register your vehicle or renew your registration. Plan ahead to ensure you have coverage when you need it, especially when buying a new car or moving to a new province.
What affects car insurance cost
Several factors influence how much you pay for car insurance. Understanding these factors helps you find ways to reduce your premiums and choose coverage that fits your budget.
Age and experience
New drivers pay the highest car insurance premiums because they lack experience and have higher accident rates statistically.
Rates decrease gradually as you gain experience and maintain a clean driving record. Most insurance companies offer significant rate reductions once you turn 25 and have several years of accident-free driving.
Senior drivers may see rate increases after age 65 or 70, depending on the insurance company. Some insurers offer mature driver discounts for seniors who complete defensive driving courses or drive fewer miles per year.
Driving record
People with bad driving records, including accidents, tickets, and claims history, are expected to pay higher premiums because of the likelihood of their bad history repeating itself.
Vehicle factors
The type of car you drive significantly affects your insurance premium. Sports cars, luxury vehicles, and cars with high theft rates cost more to insure.
Safety features like anti-theft systems, airbags, and electronic stability control can reduce your premium.
Newer cars typically cost more to insure due to higher repair costs and replacement values. However, newer cars often have better safety features that can offset some of the increased cost.
Credit score
In some provinces, credit history affects insurance rates. A bad credit score means you have to pay higher premiums.
Annual mileage
Driving more miles increases your accident risk, and this means higher premium payments.
Geographic location
Where you live and park your car affects your insurance rates. Urban areas have higher premiums due to increased traffic, higher accident rates, and more theft.
Rural areas typically have lower rates, though they may have fewer insurance company options.
Some postal codes have significantly higher rates due to high claim frequencies or theft rates. Moving even a few kilometres can sometimes result in noticeable premium changes.
How to use a car insurance calculator
A car insurance calculator helps you estimate your premium costs before you apply for coverage. These tools use basic information about you and your vehicle to provide rough premium estimates. Here’s how to use one:
- Enter your personal information: Provide your age, gender, and location details
- Add vehicle details: Include your car’s make, model, year, and safety features
- Select coverage options: Choose the types and amounts of coverage you want
- Input your driving history: Include any accidents, tickets, or claims from recent years
- Review your estimate: Compare the calculated premium with your budget expectations
- Adjust coverage levels: Try different deductible and coverage limit combinations
- Get actual quotes: Use the calculator results to guide your real quote shopping
Though they help a lot, insurance calculators may not always represent the true cost because there are more factors to consider. Use what you find on the calculator to compare prices, but realize that it might not be your actual cost.
Many insurance company websites offer calculators that give you immediate estimates. These tools help you understand how different coverage choices affect your premium costs before you commit to a policy.
What do you need to get car insurance?
Getting car insurance requires specific information and documents. Having everything ready before you start shopping speeds up the process and ensures accurate quotes. Here’s what you need:
- Valid driver’s license: You will need to provide your current valid driver’s license
- Vehicle information: Provide the make, model, year, VIN number, and purchase price of your vehicle
- Driving history: Details about accidents, tickets, and claims from the past 3-6 years
- Current insurance information: If you’re switching companies, then you will need to provide details about your existing coverage
- Personal information: Personal information like your address, employment details, and contact information
- Payment method: Credit card, bank account, or other payment option
Driver information requirements
Insurance companies need detailed information about everyone who will drive the insured vehicle. This includes licensed drivers living in your household, even if they won’t regularly drive your car.
Be honest about all potential drivers, as failing to disclose drivers can void your coverage.
If you have teenage children who will get their licenses soon, discuss adding them to your policy in advance. Some companies offer discounts for good students or young drivers who complete driver education programs.
Vehicle documentation
You’ll need your vehicle registration, ownership documents, and detailed information about your car. This includes safety features, anti-theft devices, and any modifications you’ve made.
Accurate vehicle information ensures you get proper coverage and avoid claim disputes later.
For new vehicles, bring the purchase agreement or bill of sale. For leased vehicles, provide the lease agreement that shows required coverage levels.
What is the best car insurance in Canada?
The best car insurance company depends on your specific needs, location, and budget. Different companies excel in different areas, so comparing multiple options helps you find the right fit.
| Company | Price | Time to get insured | Types | Features |
|---|---|---|---|---|
| YouSet | Competitive | Same day | Standard, high-risk | Online platform, multiple insurer access |
| Intact | Mid-range | 1-2 days | All types | Large network, comprehensive coverage |
| Aviva | Competitive | Same day | Standard, commercial | Strong customer service, bundling discounts |
| Belairdirect | Lower cost | Same day | Standard coverage | Direct sales, no broker fees |
| Co-operators | Mid-range | 1-2 days | All types, specialty | Member-owned, community-focused |
YouSet
YouSet operates as a digital insurance platform that connects customers with multiple insurance companies.
Their approach allows you to compare quotes from several insurers through one application. YouSet specializes in helping drivers find competitive rates, including those who might be considered higher risk by traditional insurers.
The website allows users to quickly find a quote and arrange their policy together online. The technology on YouSet helps you find insurance companies where your needs can be served at the best rates.
Intact
Intact Insurance is one of Canada’s largest property and casualty insurers, offering comprehensive car insurance coverage across the country. The company has a strong financial rating and an extensive network of brokers and direct sales channels.
Intact offers standard coverage options plus specialized products for high-value vehicles and unique situations. Their claims service is generally well-regarded, and they offer various discount programs for safe drivers and multi-policy customers.
Aviva
Aviva Canada provides car insurance through brokers and direct sales channels. The company offers competitive rates and comprehensive coverage options for both personal and commercial vehicles. Aviva has a strong reputation for customer service and claims handling.
The company offers various discount programs, including multi-policy discounts, safe driver rewards, and discounts for vehicles with safety features. Aviva also provides specialized coverage for classic cars and other unique vehicles.
Pros and cons of car insurance
Being aware of the benefits and drawbacks of car insurance helps you figure out the right policies and how much to spend.
Pros of car insurance
- Financial protection: Car insurance covers potentially devastating costs from accidents, theft, or damage
- Legal compliance: Makes driving legal according to the law and helps you avoid being fined or losing your driving license
- Peace of mind: Reduces stress about potential financial losses from vehicle-related incidents
- Medical coverage: Provides benefits for injuries regardless of who caused the accident
- Property protection: Covers damage to your vehicle and belongings inside it
- Liability coverage: Protects your assets if you’re sued after causing an accident
- Rental car benefits: Provides transportation while your car is being repaired
- Roadside assistance: Many policies include emergency services like vehicle towing and battery boosts
Cons of car insurance
- Ongoing expense: Monthly or annual premiums add to your transportation costs
- Deductible payments: You must pay out-of-pocket costs before insurance coverage kicks in
- Premium increases: Rates can go up after claims, even if you’re not at fault
- Coverage limitations: Policies have exclusions and limits that might not cover all situations
- Complex terms: Policy language can be difficult to understand without expert help
- Claim disputes: Insurance companies may deny claims or offer settlements you consider too low
- Rate variations: Premiums can change based on factors outside your control
How to file a car insurance claim
Filing a car insurance claim properly ensures you get the coverage you’re entitled to and speeds up the settlement process. Following these steps helps avoid delays and complications:
- Ensure safety first: Move to a safe location and call emergency services if anyone is injured
- Document the scene: Take photos of vehicle damage, road conditions, and the accident location
- Exchange information: Get contact and insurance details from other drivers involved
- Contact police if required: Many provinces require police reports for certain types of accidents
- Contact your insurance company: Report the claim as soon as possible, ideally within 24 hours
- Provide detailed information: Give your insurer complete and accurate details about what happened
- Keep records: Save all documentation related to the accident and claim process
Immediate steps after an accident
Your safety and the safety of others are the top priority after any accident. Once everyone is safe, start documenting what happened.
Take photos from multiple angles showing vehicle damage, the accident scene, road conditions, and any relevant traffic signs or signals.
Get contact information, insurance details, and driver’s license numbers from all other drivers involved. If there are witnesses, ask for their contact information as well. Avoid admitting fault or making statements about who caused the accident.
Working with your insurance company
Contact your insurance company’s claims department as soon as possible after the accident. Most insurers have 24-hour claim reporting hotlines for your convenience.
Provide honest, complete information about what happened, but stick to the facts rather than speculation about fault.
Your insurance company will assign a claims adjuster to handle your case. The adjuster will investigate the accident, assess damage, and determine coverage.
Cooperate fully with your adjuster and provide any additional information they request promptly.
Getting your vehicle repaired
Your insurance company may recommend approved repair shops, but you usually have the right to choose where to get your car fixed.
Get repair estimates from shops you trust, and make sure they’re aware that insurance will be paying for the work.
Keep all receipts related to the accident, including towing costs, rental car expenses, and any out-of-pocket medical expenses. Your insurance company will reimburse covered expenses according to your policy terms.
How to renew car insurance
Renewing your car insurance ensures continuous coverage and gives you an opportunity to review and update your protection. Most policies automatically renew unless you or your insurance company cancels the coverage.
- Review your renewal notice: Check that all information is accurate and coverage levels are appropriate
- Compare current rates: Shop around to see if other companies offer better deals
- Update your information: Notify your insurer of any changes that might affect your premium
- Consider coverage changes: Adjust limits, deductibles, or add new coverage if needed
- Pay your premium: Ensure payment is made before your policy expires to avoid lapses
- Update your documents: Replace old insurance cards and policy documents with new ones
Reviewing your coverage needs
Your insurance needs change over time, so renewal is a good time to reassess your coverage.
If your car has depreciated significantly, you might consider dropping collision or comprehensive coverage. If you’ve bought a newer car, you might need to increase your coverage limits.
Consider whether your deductible levels still make sense for your financial situation. Higher deductibles reduce your premium but mean you’ll pay more out of pocket if you have a claim.
Shopping for better rates
Even if you’re happy with your current insurance company, comparing rates at renewal time can save you money. Insurance companies regularly adjust their rates, and you might find better deals elsewhere.
Get quotes from at least three different companies to ensure you’re getting competitive pricing.
Don’t just compare premium costs; also compare coverage levels, deductibles, and policy features. Sometimes, paying slightly more for better coverage or service is worth the extra cost.
Avoiding coverage gaps
Make sure your new coverage starts before your old policy expires to avoid driving without insurance. Even a short gap in coverage can result in fines, license suspension, and difficulty getting insurance in the future.
If you’re switching insurance companies, coordinate the timing carefully. Don’t cancel your old policy until you’re certain your new coverage is in effect.
How to switch car insurance providers
Switching car insurance providers can save you money and get you better service, but the process requires careful planning to avoid coverage gaps:
- Research new insurance companies: Compare rates, coverage options, and customer service ratings
- Get quotes from multiple providers: Ensure you’re comparing similar coverage levels
- Check for cancellation penalties: Review your current policy for any early termination fees
- Time your switch carefully: Plan the change to coincide with your renewal date when possible
- Purchase new coverage first: Buy your new policy before cancelling your old one
- Cancel your old policy: Contact your previous insurer to formally cancel coverage
- Update relevant parties: Notify your lender, leasing company, and provincial registry of the change
Choosing the right time to switch
The best time to switch car insurance is usually at your policy renewal date, as this avoids early cancellation fees and makes the transition smoother.
However, significant life changes like moving, buying a new car, or changes in your driving record might justify switching mid-term.
If you’re switching mid-term, calculate whether the potential savings offset any cancellation penalties. Some insurance companies will pay cancellation fees for new customers, making mid-term switches more attractive.
Ensuring continuous coverage
Never cancel your old policy before your new coverage is confirmed and active. Driving without insurance, even for a day, can result in serious legal and financial consequences.
Most insurance companies can start coverage immediately once you complete your application and pay your premium.
Keep documentation showing continuous coverage, as gaps can affect your future insurance rates. Insurance companies often offer discounts for customers who maintain continuous coverage without lapses.
Notifying relevant parties
If you have a car loan or lease, notify your lender about the insurance change. Your financing agreement requires specific coverage levels, and your lender needs to be listed on your policy as an additional insured party.
Update your provincial vehicle registration if required. Some provinces need notification when you change insurance companies, though others don’t require this step. Check your local requirements to ensure compliance.
