Car insurance for non-Canadian residents

Planning a move to Canada for work, studies, or travel? You're not the only one. In fact, according to Statistics Canada, as of January 1, 2024, Canada had approximately 2.66 million non-permanent residents. By the third quarter of 2024, that number had climbed to almost 3.05 million, making up about 7.4% of the total population. Whether you’re arriving on a student visa, a temporary work permit, or simply visiting, you’ll want to know how driving and insurance work here. The good news is that non-Canadian residents can both drive and get Canadian car insurance, though the process varies by province and often comes with a few extra hoops to jump through.

As a temporary resident, you can legally drive in Canada using your foreign licence or an International Driving Permit (IDP). Many provinces allow you to use it for 30 to 90 days before requiring you to switch to a Canadian licence. As for car insurance, it's non-negotiable for everyone on Canadian roads. Even non-residents must carry the minimum liability coverage, which is $200,000 in most provinces, though amounts can vary by region. Having car insurance in Canada is more than a legal checkbox. It protects you from footing massive bills if you cause damage or injury. Plus, driving uninsured isn’t just risky for insurance claims; it can land you fines, vehicle impoundment, or licence suspensions. Keep reading to learn about how car insurance works in Canada for non-residents.

Can non-residents drive in Canada?

To drive in Canada, non-residents will need a valid driver’s licence to do so. However, it does not need to be a Canadian one. It can be a driver's licence from another country as long as it's valid. This means that, yes, non-residents can use their foreign driver’s licences while they drive in Canada for a limited time. Let's examine this in more detail:

International Driving Permit

Immigration, Refugees and Citizenship Canada recommends you get an International Driving Permit (IDP). While it might not always be necessary, if the licence isn’t in English or French, most provinces will definitely require you to carry either an IDP or a certified translation. Also, you'll need one if you plan to purchase Canadian car insurance. You'll want to obtain the IDP from your home country before arriving because once you're in Canada, you generally can’t get one locally.

Licence exchange

Also, if your home country has a reciprocal licensing agreement with your Canadian province or territory, you might be able to swap your international driver’s licence for a local one without taking extra tests. To find out if you qualify and understand what documents you’ll need, contact your province’s Ministry of Transportation for detailed steps on how to make the exchange.

Allowance period for driving in different regions of Canada on a foreign licence

Below you'll find a breakdown of the allowance period for driving with an international licence in each province and territory before you are generally required to upgrade to a Canadian driver's licence:

If you plan to keep driving legally in any of these provinces after your initial allowance period ends, you’ll need to either have an IDP from your home country or get a driver’s licence issued by the Canadian province where you’re staying. And remember, you must carry your permit or licence with you at all times when driving in Canada.

Is auto insurance mandatory for non-Canadian residents?

Yes. Auto insurance is mandatory across all of Canada, no matter if you’re a local, a newcomer, or a visitor. Every province and territory requires drivers to carry at least basic third-party liability coverage, which protects you if you injure someone or damage their property. Even if you’re a non-resident visiting temporarily, you can’t legally drive without it. In fact, driving uninsured in Canada can lead to heavy fines, vehicle impoundment, and licence suspensions. Depending on where you live in Canada, the types of mandatory coverage will vary by province. Here are some examples:

Whether you’re visiting for a few weeks or planning a longer stay, you’ll need car insurance that meets provincial minimums if you plan to drive. Non-residents can often leverage international insurance or buy coverage here, but you must carry it on Canadian roads.

What information is required for non-residents to purchase a car insurance policy in Canada?

Before you start shopping for car insurance, make sure you have the following documents and information prepared:

• A valid driver's licence

• Home address and legal name

• A driving abstract from your home country

• Information about your vehicle, including its model, make, age, registration number, and mileage

• Insurance history, including current policies and claim records

• Official “letter of experience” (claims history letter) from your previous insurer

Here are some tips worth noting regarding the required documentation:

Getting your driver’s abstract from your home country

Most jurisdictions allow you to request your driving abstract online or by mail. For example, Ontario’s Ministry of Transportation issues an official driving record upon request. So, be sure to check with your home country’s transport agency website for details. This record will help Canadian insurance companies assess your driving behaviour.

Getting an insurance claims history letter

Contact your previous insurance provider and ask them for an “experience letter” detailing your claim-free years or claims recorded. In fact, many providers offer this service online, making it easier for you if you forgot to get one before you arrived in Canada. Having this letter can help to significantly lower your car insurance rates. To learn more about the types of documents you need to purchase car insurance in Canada, contact BrokerLink.

How can non-Canadian residents get auto insurance?

Now that you know you can drive in Canada as a non-resident and that car insurance is mandatory, let's get into how you can go about acquiring it:

Getting insurance from other sources

When it comes to getting car insurance as a non-Canadian resident, you do have a few options. If you’re only visiting for a few weeks, renting a car might be easier. Car rental agencies in Canada automatically include the mandatory third-party liability insurance in your base rate, but they’ll also try to sell you collision and loss damage waivers. Also, check what your travel insurance includes, as it often offers optional rental vehicle coverage that can save you money.

But, before you accept coverage through the rental company, check with your car insurance provider back home about whether your coverage may extend to Canada. For example, many U.S. policies extend coverage into Canada for temporary visits, and you might be eligible for a “Canada Non-Resident Inter-Province Motor Vehicle Liability Insurance Card” (sometimes called a yellow card). Another option, if you're driving someone else's car (like a friend or family member), is to ask them to add your name as an additional insured on their car insurance policy.

Buying your own coverage

As for buying your own car insurance as a non-resident in Canada, you have two main options:

• Going directly through an insurance company

• Working with an insurance broker

If you choose a direct insurance provider, you apply straight to the company, get your quote, and buy your policy. However, when working directly with an agent from an insurance company, options can be more limited, and rates may be higher, especially if you hold a foreign licence. Brokers, on the other hand, work with multiple private insurance companies at once and know which companies are more flexible with international drivers. They can help you compare car insurance quotes from several companies to find you better rates and even secure you a short-term policy in certain provinces.

And speaking of short-term options, while some provinces allow temporary or short-term policies that last anywhere from a few days to several months, not all of them do. For example, Manitoba offers short-term Autopac for 30 days up to 244 days, whereas Alberta only offers six or 12-month policies, and Ontario rarely provides policies shorter than 12 months. But remember, you must have either an international driving permit or a Canadian driver's licence in order to apply for Canadian car insurance.

Can non-residents import vehicles into Canada?

Yes. Non-residents are legally allowed to import vehicles into Canada; however, the process can be complicated, and there are many restrictions. In fact, Transport Canada states that most vehicles sold in countries other than the United States (U.S.) and Mexico cannot be imported into Canada. Here's a quick rundown of importing a car permanently or temporarily:

Permanent import of cars

First, according to the Motor Vehicle Safety Act, your vehicle must meet the Canada Motor Vehicle Safety Standards (CMVSS) if it’s less than 15 years old. Mexico and U.S.-market vehicles are usually eligible, but they might need modifications like daytime running lights, child tether anchors, or bilingual labelling to fully comply. Most vehicles imported from Mexico or the U.S. must also go through the Registrar of Imported Vehicles (RIV) program, which oversees inspections and certification.

Meanwhile, the Canada Border Services Agency (CBSA) will require documents at the border, including proof of ownership and compliance, and they’ll check that the vehicle is clean (i.e., no soil contamination) and that all duties and taxes are paid. If your vehicle qualifies as “non-regulated”(e.g., certain farm vehicles or off-road competition cars), CMVSS standards don’t apply, but you still need to clear customs properly. You can learn more directly from Transport Canada and CBSA.

In addition, each province has its own additional requirements. For example, according to CTV News Toronto, imported right-hand‑drive vehicles must be at least 15 years old. So it's important you check with the import rules as well for whichever province or territory you'll be staying in.

Your quick step-by-step vehicle import guide

1. Verify if your vehicle meets CMVSS.

2. Get the original title, bill of sale, and manufacturer compliance letter (if applicable).

3. Declare your vehicle at CBSA, submit your paperwork, and pay for any duties and taxes.

4. Pay the RIV fee and get Form 1 stamped.

5. Make any required CMVSS changes within 45 days.

6. Bring your vehicle to an authorized inspection center for final approval.

7. Pass a provincial safety inspection (e.g., Safety Standards Certificate in Ontario).

8. Purchase car insurance coverage.

9. Register your vehicle locally and attach your new plates.

Temporary import of cars

If you're a visitor, student, or temporary resident, Canada will also allow you to temporarily import your vehicle(s) without fully complying with CMVSS standards, as long as the vehicle is for personal use and aligns with your visa length. You can use a Vehicle Import Form (Form 1) to license it here, and it can stay for up to the limit of your work permit or study visa (or as long as your rental agreement allows, in the case of U.S. rentals).

Just remember, temporary imports can't be sold or gifted, and if your status changes to permanent resident, standard import rules will then apply. If your vehicle cannot be legally imported, it must be exported or destroyed. If you can successfully import your vehicle into Canada, make sure to keep track of all import paperwork. Also, please note that importing a vehicle into Canada doesn’t mean that it is automatically registered or that you are guaranteed insurance.

Overview of mandatory and optional car insurance coverage for non-Canadian residents

Since car insurance is mandatory throughout Canada, all temporary residents will need to obtain insurance in order to get behind the wheel. As we mentioned earlier, coverage requirements vary by province. In addition to mandatory coverage, many choose to add extra coverage for additional protection. Here's an overview of the most popular coverage types in Canada:

Why is having car insurance necessary?

Mandatory coverages make sure you’re legally allowed to drive and protect others on the road. For example, liability coverage is required across all provinces, with most minimum limits requiring $200,000 (though most drivers opt for $1 million or more for better protection). In Ontario, Alberta, and many other provinces, coverages like accident benefits, uninsured motorist coverage, and DCPD are also compulsory.

Optional coverages, meanwhile, are all about protecting you. While they aren’t legally required, they can save you thousands of dollars and a lot of stress if something unexpected happens, from a fender bender on an icy road to a stolen SUV at the mall parking lot. Whether you go with just the basics or add extra layers of protection, understanding these options helps you better understand how to protect yourself on Canadian roads. To learn more about the types of car insurance coverage available in Canada, contact BrokerLink.

Tips to help you save money on car insurance costs in Canada

Car insurance can be a big expense, especially for non-residents, who often pay higher premiums because they don’t have a Canadian driving history. But the good news is that there are plenty of ways to keep those costs down. Here’s a look at some money-saving tips that can help you get better rates, even as a newcomer:

Common insurance pitfalls for non-residents to avoid

Moving to or visiting Canada can be exciting, but non-resident drivers often run into the same avoidable mistakes when it comes to driving and insurance. Here are some of the most common pitfalls and how to steer clear of them:

Letting your licence expire

Many non-residents forget that their foreign licence or International Driving Permit is only valid for a limited period. We recommend that you mark your calendar with deadlines and start the process early if you need to exchange your licence for a local one.

Underinsuring

Some newcomers try to save money by choosing just the bare minimum required coverage. But skipping collision or comprehensive coverage can leave you exposed to major costs if you're involved in an at-fault accident or if your car is stolen. In fact, according to the Équité Association, over 57,000 private passenger vehicles were stolen in Canada in 2024. That's why we strongly recommend talking to an insurance broker who can explain the benefits of optional add-ons clearly.

Missing documentation

Many non-residents underestimate how important it is to have your complete paperwork ready, such as a driver’s abstract, proof of insurance history, and translated documents. Missing these can delay getting insurance coverage or registering your vehicle. We recommend that you request a claims history letter and driving abstract from your home country before arriving, and verify whether these documents will require a certified translation.

Contact BrokerLink to learn more

Are you currently a non-Canadian resident who is looking for car insurance? Contact BrokerLink today. One of our expert insurance advisors will be pleased to assist you. With decades of experience in the insurance industry, we know which insurance companies to contact about auto insurance for non-Canadian residents. Plus, we make shopping for car insurance easy by obtaining and comparing car insurance quotes on your behalf.

When you work with BrokerLink, we will be by your side every step of the way. You can reach us by phone, email, or in person at any one of our locations throughout Canada. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive car insurance quote in minutes.

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