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13 minute read Published on Jan 7, 2026 by BrokerLink Communications
When it comes to owning or buying a car in Canada, there’s often confusion around two important documents: the vehicle title and registration. While they may sound similar, they serve different purposes, and mixing them up can lead to issues when it comes to things like insurance claims or vehicle sales.
According to Transport Canada, there were 25.7 million registered vehicles across the country in 2023. That’s a lot of drivers who need to understand how these documents work. So, whether you're registering a newly purchased vehicle or transferring ownership, we’re here to help you understand the difference between vehicle title and vehicle registration.
Motor vehicle registration is a mandatory process that allows you to legally drive your vehicle on public roads in Canada. It basically connects your car to your name in your province or territory’s system. Each region handles this through its own transportation authority, such as:
ServiceOntario
Société de l'assurance automobile du Québec (SAAQ)
ICBC
Alberta Registry Agents
When you register a vehicle, you typically receive:
This document serves as proof that your vehicle is registered and includes details like the vehicle's make, model, Vehicle Identification Number (VIN), and the owner's information.
These are physical plates affixed to your vehicle, displaying a unique combination of letters and numbers that identify your vehicle.
To register a vehicle in Canada, you'll generally need to provide some variation of the following:
Valid driver’s licence
Plate portion of the permit (to reuse licence plates)
Proof of purchase/bill of sale
Proof of auto insurance
Safety inspection certificate
Original vehicle permit from seller with completed transfer portion (for used cars)
Specific requirements can vary by province or territory, so be sure to check with your province for which documents you need. For example, ServiceOntario requires a completed used vehicle information package when registering a used vehicle.
You’ll need to renew your vehicle registration regularly (usually every one to two years) to keep everything legal and up to date. If you forget or put it off too long, you could face fines, penalties, or even have your registration suspended. For example, according to the Ontario Newsroom, while the province eliminated licence plate sticker fees for certain vehicles in 2022, drivers are still required to renew their registration every one to two years to confirm their auto insurance is valid.
Usually, you can’t register a car if it’s not in your name. The vehicle has to be registered under the actual owner. That said, there are exceptions. In some provinces, you might be able to register it with a Letter of Authorization from the person who owns the car. This is sometimes used if you're registering a car for a family member or work. Just make sure to check with your local vehicle registry to see what’s allowed.
In Canada, a car title is called a vehicle permit or ownership document. It is a legal record that establishes who holds the legal rights to a motor vehicle. This document is essential for proving ownership. Unlike in the United States, where it's referred to as a "car title", Canada uses the terms "vehicle permit/registration certificate" or "ownership". It includes essential information such as:
Vehicle Identification Number (VIN)
Make, model, trim, and year
Owner's name and address
Date of sale or transfer
Odometer reading at the time of sale
Weight class and other specifications
For instance, the Ontario Ministry of Transportation issues a green paper document known as the vehicle permit when you register your new or used vehicle in Ontario. This document must be presented when transferring ownership or filing an insurance claim.
Vehicle permits are issued by the provincial or territorial transportation authority, such as ServiceOntario. When registering a vehicle, this document is provided as official proof of vehicle ownership. There are two scenarios:
When you buy a car from a dealership, they usually handle the paperwork on your behalf. The dealer submits the necessary documents to the provincial authority, which then issues the vehicle permit in your name. You’ll receive a printed copy to keep with you.
The seller completes the transfer section on the back of the existing permit and gives it to you. As the buyer, you must bring this document, along with other required materials like proof of insurance, to the provincial office to finalize the ownership transfer and receive a new permit. Make sure to keep your vehicle permit somewhere safe, and don’t forget to carry the plate portion with you when you’re driving, as it might be needed if you get pulled over or have to file an insurance claim.
It’s easy to mix up a vehicle permit and registration, as they both involve your car and official paperwork. But, as you now know, they serve very different roles. Here’s a simpler breakdown to help you tell them apart:
Feature
Vehicle registration
Vehicle permit
Purpose
Grants legal permission to drive on public roads
Proves legal ownership of the vehicle
Who it's issued by
Provincial/territorial government
When it's issued
Upon initial registration and during each renewal
Once, when you buy or transfer a vehicle
What it includes
Licence plates, registration certificate/permit
Owner’s name, VIN, vehicle details, lienholder (if any)
When to update
Typically renewed every one to two years
Only if you sell the vehicle
It's essential to know the difference between these two documents when it comes to situations like buying or selling a car or importing a car from another province. For example, when buying or selling a used car, especially in a private sale, the vehicle permit is what legally transfers ownership. If you only exchange the registration, the sale isn’t official, which can create problems with insurance or liability if something goes wrong. Also, if you're importing a vehicle from another province, you’ll need to cancel the registration in the original province and apply for a new registration and permit in your new province. Without the correct permit, you may not be able to legally register or insure the vehicle.
If the vehicle title or permit isn’t properly transferred when buying a used car, the seller remains the legal owner, even if the buyer has paid for the vehicle. This means that the buyer may be unable to insure or register the vehicle. The buyer might also face penalties for driving an unregistered vehicle. Plus, the seller could still be held liable for fines or accidents since they are still the legal owner.
While the concepts of vehicle registration and ownership (title) are consistent across Canada, the process and terminology can vary from one province to another. Here's how a few major provinces handle things differently:
In Ontario, the vehicle permit is split into two parts:
Vehicle portion (proof of ownership)
Plate portion (registration)
When buying or selling a vehicle, the seller must sign the vehicle portion over to the buyer, who then registers the vehicle and obtains a new permit. Registration renewals no longer require a fee for most passenger vehicles, but drivers must still renew every one to two years to stay compliant. Learn more by visiting ServiceOntario.
In Quebec, ownership and registration are managed together through the Société de l'assurance automobile du Québec (SAAQ). The process involves obtaining a registration certificate, which confirms you’re authorized to operate the vehicle. When you buy a car, you and the seller need to head to an SAAQ service outlet together to wrap up the sale and get the vehicle officially registered. Learn more by visiting SAAQ.
In Alberta, owners receive a vehicle registration certificate and licence plates when registering. For proof of ownership when registering a vehicle, a bill of sale or lease agreement is typically used. Learn more by visiting Alberta Registry Services.
Losing your vehicle registration or ownership permit can be frustrating, but replacing them is usually pretty simple. Just make sure to act quickly to avoid complications with insurance or roadside stops. If you’ve lost your vehicle registration certificate or permit, visit your local transportation authority office or service centre. Bring with you:
Valid ID (e.g., driver's licence, passport)
The vehicle's VIN or licence plate number
Proof of insurance
A small replacement fee usually applies and may vary depending on your province or territory. For example, in Ontario, it costs $32 to replace your vehicle permit.
The exact steps vary by province, so here's a breakdown using the same three provinces as earlier:
The following section covers transferring ownership for a private sale in Ontario:
Fill out the back of the vehicle permit (ownership) with the buyer's and seller's info
Provide a signed bill of sale
Receive a completed used vehicle information package (UVIP) from the seller
Buyer must show proof of valid insurance and a Safety Standards Certificate
Submit documents in person at a ServiceOntario location
Below is a guide to transferring car ownership for a private sale in Quebec:
Buyer and seller must both go to an SAAQ service outlet with ID and the registration certificate
Alberta's private sale: how to transfer car ownership:
Complete a standard bill of sale
Bring ID, proof of insurance, and the bill of sale to a registry agent
Insurance coverage plays a significant role in both vehicle registration and ownership. In most provinces, you can’t register a vehicle without proof of valid auto insurance because it shows you’ve met the legal requirements to protect yourself and others on the road. After all, as stated by the Insurance Bureau of Canada, car insurance is mandatory throughout Canada, which means you cannot drive your new (or used) vehicle home after purchasing it without it.
In Canada, you must carry third-party liability coverage with a minimum $200,000 coverage limit for most provinces, but Nova Scotia requires $500,000, and Quebec only $50,000. Then, depending on the insurance regulations for your province, you may also be required to carry accident benefits coverage, uninsured motorist coverage, or direct compensation-property damage coverage. When you visit your local registry to register or transfer a vehicle, expect to provide your insurance slip as part of the process. And don't forget to make sure that your car insurance and registration information match.
Do you need car insurance to register your vehicle in Ontario or anywhere else in Canada? Contact BrokerLink today. Our expert insurance brokers will compare policies using our extensive network of insurance companies to provide you with comprehensive coverage at a competitive rate.
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.
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Simply registering your vehicle does not imply that you own it outright. Vehicle registration is the process of filing the required documentation and information to the correct government department, usually, the Department of Motor Vehicles (DMV), to legally operate your car on public roadways.
When you purchase a car, the title is usually assigned to your name in order to show that you are the legal owner of the vehicle. However, registering the car in your name is an additional procedure that ensures you have met the rules and regulations for driving on public roads.
It is essential to note that while registration and ownership are separate notions, they frequently intersect. To register the car in your name, you will usually need to submit proof of ownership, such as a valid title. However, in some cases, such as when leasing a vehicle or registering it on behalf of a business entity, you might be able to register it without being the owner.
Yes, in most cases, proof of ownership is required to insure a car. Before issuing an insurance policy, insurance companies typically require proof that you are the legitimate owner of the vehicle. Depending on the jurisdiction, proof of ownership naturally occurs through the vehicle's title or registration document.
When applying for car insurance, you will almost certainly be asked to provide information about the vehicle, including its make, model, year, and Vehicle Identification Number (VIN). You will also be required to submit supporting documentation proving your ownership of the vehicle.
It is critical to confirm your insurance company's specific requirements for proof of ownership. It is vital to provide accurate and valid proof of ownership in order to obtain adequate insurance coverage for your vehicle.
The car title and vehicle registration certificate are crucial prerequisites when refinancing a car loan. If you have a balance to repay on your car, these documents will be required if you decide to refinance. Refinancing a car entails using another vehicle loan to pay off your old loan, which usually comes from an alternate lender. People frequently choose to refinance to secure lower monthly payments, combine borrowing, and guarantee a more stable financial plan that enables them to keep the legal ownership of their vehicles while repaying the loan gradually.
It's worth noting that while renegotiating extends the time frame of existing debts and payments, it also has the potential to provide advantages in the future. However, there are expenses and fees associated with the refinancing technique. The new lender will ask for both the car title and registration to begin the refinancing process, as these papers confirm the car's ownership and act as collateral for the extension of the loan.
If your vehicle is involved in an accident and is deemed unsafe to drive, the only way to proceed is to call a towing company. However, it's crucial to think about possible costs and whether your car insurance plan covers this service. Towing expenses are covered differently depending on the details of your policy.
To find out if your insurance cover for towing after a collision, go over the fine print. Typically, in order for the insurance company to cover the costs of a tow truck, you must have bought collision coverage or all perils insurance coverage. Collision coverage is a kind of optional insurance that helps pay for the costs of repairing or replacing your own vehicle in the event of an accident, regardless of fault. This coverage may include towing services, ensuring that the cost of towing your car after a collision is covered. Similarly, all perils insurance coverage is a comprehensive coverage that protects your vehicle from a variety of risks, such as accidents, theft, vandalism, and more. Towing expenses are frequently included in this broader coverage.
If you have any questions about the protection that's provided by your insurance policy or about towing costs, you should contact the insurance company directly. They can give you accurate information regarding the coverage you have and walk you through the procedure of filing a complaint for towing expenses if needed. Remember, knowing your insurance coverage and comprehending the terms and conditions is critical to ensuring you have sufficient safety and financial support when unexpected events such as accidents occur.
Calling your insurance company after a minor accident or more serious collision can be a stressful experience. However, if you are involved in an accident, it’s essential that you report any damage to your insurance provider and the authorities (in some cases).
So, what happens if you don’t report an accident? Well, there are a couple of consequences that could occur, including fines, demerit points, the suspension of your driving privileges, and criminal charges for leaving the scene of an accident.
It's understandable that reporting an accident can be stressful, but it's critical not to put off the process. It is strongly advised to report the accident as soon as possible. However, having to report a car accident in Ontario will differ from that in British Columbia or Alberta, and the exact time limit varies depending on where you live; it's generally recommended to report an accident to the police, your insurance company or a collision centre within 24 hours to ensure adherence to the regulations in place. Reporting the accident as soon as possible will help to facilitate the required processes and records, providing a smoother resolution of the situation.
Car insurance Toronto, or from any municipality, regardless of province or territory, is intended to protect motorists from financial liabilities in the event of an accident. However, no matter how safe of a driver you may be, accidents can still happen at any time. Here is a closer look at some of the most common car accidents:
Whether you’re on your phone, putting on makeup, or eating, distracted driving is one of the most common causes of accidents that can yield significant consequences for yourself and others.
Unfavourable weather conditions, including ice, snow, fog, and rain, can not only reduce your visibility on the road, but it can also make the road itself slippery, leading to the inability to stop on time or gain control over your vehicle.
Although speed limits vary across the country, these limits are intended to ensure the safety of all drivers on the road.
Driving while under the influence of drugs or alcohol, if convicted, can yield consequences, including increased insurance premiums, fines, or criminal charges that result in jail time.
If you have any questions, contact one of our local branches.
