How long does it take to get car insurance?

In 2022, there were a reported 26.3 million registered vehicles in Canada, a 0.3% increase from the previous year. If you intend to operate a motor vehicle on public roads, you'll need to have proof of valid insurance beforehand. Whether you're purchasing your first car or trying to get back onto the road without having a lapse in coverage, when it comes to insurance coverage, timing is everything.

So, how long does it take to get car insurance in Canada? Purchasing car insurance in Canada can take anywhere from a few minutes to a few hours. Even better, it usually doesn’t take long for your new policy to come into effect. Ultimately, how long it takes to get auto insurance depends on how prepared you are for the application process and how confident you feel in your decision. Stick around as we explore everything from what you need to bring with you when buying auto insurance, what can affect your approval times, and how you can speed up the process in our step-by-step guide below.

Factors affecting auto insurance coverage approval times

As we mentioned, the answer to the question, "How long does it take to get car insurance?" can vary between customers, largely due to car insurance approval times, which can also vary depending on numerous factors:

1. Your driving history & record

When purchasing auto insurance, insurance companies will evaluate your risk profile before calculating your rates. This risk level is formulated based on your driving history and record. A poor driving record with traffic tickets, DUIs, or other infractions can lengthen your appointment time, as your provider will need to conduct a more in-depth assessment of your profile. In contrast, insurance for first-time car buyers and those with a good driving record can lead to shorter approval times and lower insurance costs.

2. Vehicle make and model

Certain vehicle models are often flagged for being high-risk of vehicle theft, like the Honda CR-V or Ford F150; some other vehicles have poor safety ratings, and expensive repair costs. According to the Insurance Bureau of Canada, theft-related claims reached $1.5 billion in 2023, a 254% increase since 2018. If your vehicle happens to fall within any of these categories, there's a chance your insurance company may take longer to approve your insurance policy.

3. Your credit score (varies by province)

In provinces like Alberta, where insurance providers can review customer credit scores, not only can your credit history impact your car insurance premiums, but also how long it takes to purchase car insurance. For example, a good credit score (720 and above) can lead to faster car insurance processing, while a lower score might require additional documentation and further inquiries before you're approved.

4. The insurance company

All insurance companies in Canada have different underwriting processes and specializations. For example, insurance providers offering high-risk auto insurance likely have lengthier and stricter approval processes, while buying car insurance from a standard insurance company may have fast-track approvals. Additionally, digital insurance providers can often process insurance application forms faster than traditional insurance providers, who rely on paper documentation.

How to speed up the process when buying car insurance policies

If you're in a rush to purchase auto insurance, here are some tips you can use to speed up the process and get back onto the road in no time:

Get pre-approval

Some Canadian insurers allow customers to check their eligibility before buying car insurance. These online tools can help you identify any potential issues ahead of time to prevent any back-and-forth that may slow things down.

Use digital platforms to compare rates

Work with an insurance company that offers online tools that can help you compare car insurance quotes and coverage options within a few minutes. Comparing auto insurance quotes can help you narrow down your options, and most of the time, these insurers offer swift application processing times.

Prepare necessary documents beforehand

Before approaching an auto insurance company, make sure to have your documents for insurance ready to go. This includes your driver's licence number, vehicle identification number, and any previous car insurance policy you may have had. Missing documents can lead to avoidable delays.

Choose the right insurance company

Some auto insurance companies are faster than others. Before you start shopping, check online reviews from customers and pay attention to their customer service and turnaround times.

Work with an insurance broker

Working with an insurance broker can help you compare numerous auto insurance quotes, save money on your coverage, and ensure you have the right coverage for your budget. Insurance brokers are industry experts who are also available to offer tips and answer any questions you may have about your car insurance.

Online vs. in-person car insurance applications

As we said, you can get car insurance in many different ways--specifically online or in person. Choosing between the two can influence how long it takes to get car insurance:

1. Online car insurance policy application

Below, we’ll outline both the benefits and trade‑offs of applying for car insurance online. Use this quick overview to decide whether an online‑only approach fits your needs or if speaking with a broker would add value:

Pros

• Instant car insurance quotes to save time and money.

• Convenient and accessible 24/7.

• Can find the right policy for your vehicle within an hour.

Cons

• Limits how much advice and guidance you receive from an actual broker or agent.

• Not ideal for those with high-risk driving profiles.

2. In-person car insurance policy application

Thinking about applying for car insurance in person? Below, we outline the key pros and cons to help you decide what’s right for you:

Pros

• Personalized service and advice from a car insurance professional.

• An insurance broker can negotiate better car insurance terms and conditions.

• Helpful if you're looking for young drivers' insurance or other high-risk coverage.

Cons

• Brokerage business may not be able to help you right away (may only take appointments)

• Some steps may require you to fill out physical documents.

Will my car insurance policy go into effect immediately?

Car insurance typically goes into effect on the date you specify, which can be on the day you purchase it. When purchasing car insurance, especially if done online, you will need to enter your policy start date. Once your purchase has gone through, your policy will begin on the date stipulated.

How long after buying a new vehicle do I need to purchase auto insurance?

If you're buying a new car and have an existing policy in place, you can transfer the plan to your new vehicle. If you don't have current coverage and are buying a new car, you'll need to purchase coverage before hitting the road.

Can I buy car insurance the same day I get into an accident?

Yes, you can purchase car insurance the same day you get into an accident. However, your new insurance policy will not cover any damage that occurred before it was purchased. This means that buying auto insurance after an accident, even if you buy it that same day, won’t help you pay for the costs associated with it. If you drive without insurance and get into an accident, you will have to pay for any damages out of pocket.

How long does it take to add a new driver to an existing car insurance?

This depends on the insurance company, but most insurers can add a new driver to your existing policy the same day the request is made. To add a driver to your auto insurance policy, contact your insurance company, either online or over the phone, and provide them with some basic information about the additional driver, such as their driver’s licence number and expiry date, name, age, date of birth, and address.

Get a car insurance quote from BrokerLink

Purchasing car insurance quickly in Canada is possible, but it does require some preparation. Whether you're looking for online coverage as a new driver or broker-assisted approvals, understanding the factors that influence the process can help you make informed decisions on your coverage.

At BrokerLink, we help drivers find affordable insurance coverage with ease. Our brokers have access to numerous policies from some of Canada's top providers, allowing us to shop around on your behalf, unlock discounts, and help you decide on insurance that fits your needs, including:

• Liability car insurance

• Comprehensive insurance

• Collision insurance

• And more!

To work with us, contact us over the phone to speak with a broker directly. You can also get a free insurance quote using our online quote tool!