Car insurance in Canada for visitors

Are you planning a trip to Canada and thinking about getting behind the wheel while you’re here? Whether you’re renting a car or borrowing one from a friend or family member, there’s one important thing you’ll need to sort out first: car insurance.

Canada is a popular destination for travellers from around the world. In fact, according to CEIC Data, in July 2024 alone, nearly 3 million international visitors arrived in the country. With so many tourists exploring Canada’s cities, highways, and scenic backroads, it’s no surprise that many choose to drive during their stay. But before you do the same, it’s important to understand the rules around insurance. Driving in a foreign country comes with its own set of challenges, including:

• Different traffic laws

• Unfamiliar road signs

• Varying insurance requirements

• Potential language barriers

Knowing how car insurance works in Canada can help ensure your trip is smooth, safe, and stress-free. Plus, car insurance isn’t optional; it’s legally required for anyone driving in Canada. If you're caught behind the wheel without it, you could face serious consequences like fines, vehicle impoundment, or legal trouble.

In this guide, we’ll walk you through how car insurance works for tourists in Canada and how BrokerLink can help you find a policy that fits your plans.

Understanding Canadian car insurance laws by province

While auto insurance is mandatory across Canada, the way it’s managed and delivered can vary quite a bit depending on the province or territory you’re in. This means that where you’re driving can impact how you’re insured, and what you need to know as a visitor.

For example, British Columbia has a public auto insurance system run by the Insurance Corporation of British Columbia (ICBC). If you're renting or borrowing a car there, your coverage will go through this government-run provider.

On the other hand, provinces like Alberta and Ontario use private insurance markets, where multiple companies offer coverage. This gives drivers and tourists more flexibility to compare and choose policies.

Also, some provinces, like Ontario, also use a no-fault insurance system, which means that after a car accident, each driver’s insurance pays for their own damages, no matter who’s at fault. Other provinces, like Quebec, have hybrid systems that combine public and private coverage.

Why this matters to you as a tourist

The province you're driving in will influence how claims are handled, what kind of coverage you’re offered, and how much flexibility you have when choosing insurance.

For example, some rental car companies may offer different levels of coverage depending on the provincial rules, and if you're borrowing a car, the owner’s existing car insurance policy might not fully cover you in another province. Therefore, it’s a good idea to check the rules of the specific province you’ll be driving in.

Tourists from the U.S.

The United States, Canada’s neighbour to the south, is where most of the country’s tourists come from. According to Statistics Canada, in November 2024 alone, U.S. residents made 1.4 million trips across the border, up 18.4% from the same month the year before. Many of those travellers arrived by car, driving their own vehicles or renting once they arrived.

If that’s your plan, you’ll be happy to know that most U.S. personal auto insurance policies automatically extend coverage into Canada. That means your liability, collision, and comprehensive coverage usually follow you across the border. Still, it’s always a good idea to double-check with your provider before your trip, especially if you’re planning a longer stay or a road trip across multiple provinces.

A common question many travellers have is whether their U.S. insurance also covers rental cars in Canada. In many cases, the answer is yes, especially if your policy includes rental car coverage at home.

Companies like State Farm, GEICO, Allstate, and Progressive typically offer Canadian coverage for both personal vehicles and rentals. However, limitations may apply, so it’s worth confirming the specifics, such as coverage duration and policy limits.

Also, if you’re using a credit card to rent a vehicle, some cards offer secondary or primary rental car insurance that includes Canada. Just be sure to read the fine print or call the card issuer to clarify.

Tourists travelling from other countries

If you’re travelling to Canada from a country other than the U.S. and plan to drive, then you likely fit into one of two categories:

Borrowing a friend or family member's car

In Canada, car insurance follows the car, not the driver. This means if you borrow a car from a friend, the owner’s insurance covers you to the extent that is mandatory by provincial law. This is ideal for tourists who are able to borrow a car from a friend or family member when they arrive in Canada.

If you're planning on staying in Canada for a while, your friend or family member may want to add you as an occasional driver to their car insurance policy.

Renting a car

Renting a car is another option for international drivers. If you’re only staying in Canada for a short time and plan to drive with your foreign driver’s licence, getting car insurance coverage through your car rental company is usually the simplest option. It’s quick, convenient, and designed with short-term visitors like you in mind.

Rental car insurance typically includes some variation of the following mandatory and optional types of coverage (depending on where you are) to help protect you while you're on the road:

• Third-party liability coverage
• Accident benefits coverage
• Uninsured motorist coverage
• Direct compensation-property damage coverage
• Personal effects coverage
• Collision damage waiver (CDW)

However, if you are planning on staying for an extended period or even living in Canada temporarily, you may need to look into getting your own Canadian car insurance policy. If so, there are several steps you'll need to follow to purchase Canadian car insurance as an international driver. You may even need to get a Canadian driver's licence.

Short-term auto insurance for tourists

Some provinces in Canada do offer short-term auto insurance for tourists, but availability depends on where you are and your specific situation, especially whether you’re renting, borrowing, or bringing your own vehicle.

In British Columbia, through the ICBC (the government-run insurer), you can purchase temporary insurance permits for short-term use, including tourist travel. However, this is often used if you’re borrowing a car from a friend or family member or bringing your own vehicle into the province.

In other provinces that use private insurance markets, you may be able to shop around with brokers and insurance companies for short-term policies. However, most of the time, it will be hard to find a policy shorter than a year, and for the few insurance providers that do offer shorter policies, they're generally at least for six months. Basically, what it comes down to is:

• If you're renting a car temporarily as a tourist, your best bet is usually to get insurance directly through the rental company, which includes car insurance options tailored for short-term use.

• If you're borrowing a friend's car, you're covered under their insurance, but may need to be added as an occasional driver.

If you're importing your own car into Canada, you may be able to extend your existing insurance from home (just confirm it with your provider first). If you can't extend your existing coverage, you may have to purchase a six-month or one-year policy and then cancel it early if you return to your home country before the policy is up. Just keep in mind that you may face penalty fees for cancelling early.

What documents are required for car insurance in Canada?

To get car insurance as a foreign tourist in Canada, you'll need to provide some key documents to help the insurance provider assess your risk and determine your premium. Here's what you’ll typically need:

• The make, model, and vehicle identification number of the car you want to insure

• Your valid driver’s licence number (plus the licence information of anyone else who will drive the car)

• Any driving safety certificates you’ve earned in the past three years

• A record of your driving or claims history

Bring your driving abstract

If you're coming from another country, you can often request a driving abstract or history report from your home country’s licensing authority, such as the DMV in the U.S. or DVLA in the UK. This report shows how long you’ve been licensed, any traffic violations, and past insurance claims.

Providing this record along with proof of existing or previous insurance can help you qualify for better rates. Canadian insurers may offer discounts or lower premiums if you have a clean driving history, even if it’s from outside Canada. Be sure to have these documents translated into English or French (if they aren't already), and try to request them well in advance of your trip.

Don't forget your international driver's permit

If you’re planning to drive while visiting Canada, it’s a good idea to get an International Driving Permit (IDP) before your trip. It’s basically a translated version of your foreign driver’s licence that makes it easier for police officers and rental car companies in Canada to understand and verify your driving credentials.

If your valid licence isn’t in English or French, an IDP is especially important, as it can save you from confusion or delays if you’re pulled over or picking up a rental car. Just remember that you’ll need to get it from your home country before you arrive in Canada.

How much does auto insurance for tourists cost in Canada?

The cost of car insurance for tourists in Canada varies. As with car insurance for local residents, insurance companies will consider many factors when calculating premiums. A tourist can expect a Canadian insurance company to consider the following when determining their rates:

• Your age

• Your gender

• Your insurance history

• Your driving experience

• The vehicle you'll be driving

• The location that you’re visiting

Generally speaking, auto insurance for international drivers tends to be more expensive than for local residents, especially if you cannot provide your driving history with a verified record. That said, there are ways to keep costs down, like working with an insurance broker at BrokerLink! Contact us today, and we can help you find the best coverage at the lowest rate in Canada.

Get in touch with BrokerLink to receive a free car insurance quote

Want to learn more about car insurance for tourists in Canada? At BrokerLink, we can explain how car insurance works for tourists in Canada and ensure you have the coverage you need to travel safely (and legally) get behind the wheel. Whether you’re visiting Canada for a short trip or an extended stay, having the right car insurance is essential for peace of mind. BrokerLink can help you find the best coverage tailored to your needs. Contact us today for a free quote!

You can reach us by phone, email, or in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.

Get an auto insurance quote1-866-724-2372