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Comparing Canadian Auto Insurance with U.S. Auto Insurance Coverage

When you move from one country to another, you will find that the laws for car insurance will vary, even when you are talking about Canadian auto insurance compared to U.S. auto insurance. Even though these two countries are right next to each other, the laws are different.

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Canadian Auto Insurance vs. US Auto Insurance

Not only is there a difference between Canadian auto insurance and U.S. auto insurance, but there are also a couple of differences between the difference provinces in Canada, much like there is a difference in requirements between states in the U.S.! Read on to learn the similarities, the differences and how to save money in either nation.

The Similarities Between Them

Despite the fact that there are many differences between these two countries, they both have some things in common:

  • It is required for any driver to have auto insurance (or at least proof of ability to pay for damages) or it is illegal for them to drive. Also, in both countries you receive an insurance card when you purchase your car insurance.
  • In most states you are required to show your insurance card on demand. This is also a requirement in Canada. Much like in the U.S., it is rare for the Canadian police to pull someone over simply to check their insurance coverage. Usually there is another reason for the traffic stop.
  • Another similarity between the U.S. and Canada is that in the U.S. there are no-fault states that don’t allow drivers to sue if an accident occurs due to negligence. In Canada, there are several provinces with this same policy, although this isn’t the case for all of the provinces.
  • us auto insurance vs canadian auto insuranceBoth have liability limits. In the U.S. there are liability requirements that are set by each state. While Canada has liability requirements as well, they are determined by the Canadian government, so the minimum requirement doesn’t vary between provinces.
  • If you cause an accident in the U.S. or in Canada, it is your insurance that is required to cover the cost of paying the damages. In addition, if you don’t purchase comprehensive coverage, then your vehicle will not be repaired; this is true in both countries!
  • You will also find that both the U.S. and Canada have heavy competition in terms of selling insurance. There are different options for coverage types, price differences between companies and more.
  • Both Canadian and U.S. citizens will find that they can save money on their insurance by choosing a larger deductible for their insurance policy. In addition, there are discounts for good drivers, experienced drivers and so on in each of these countries.
  • Insurance companies are required to be licensed to sell insurance by province just like insurance companies are required to be licensed by state in the U.S.. Naturally, this means that someone in either country looking for insurance has to determine whether or not a company is licensed to sell to them before they get a quote.

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Canadian Auto Insurance vs. U.S. Auto Insurance: The Differences

One major difference between Canadian auto insurance and U.S. coverage is that in Canada, if you have an accident in Quebec, then it isn’t your insurance company that pays your injury claim, it is the Quebec government. Notice the stipulation here is a claim for an injury.

The private insurer continues to pay any claims for the damage made to the vehicle in the course of an auto accident.

This type of injury claim varies between provinces.

There are other significant differences between the provinces and the states:

  • comparison of canadian and us car insuranceThe name of an insurance card in Canada is a bit different. It is called a Canadian Interprovincial Motor Vehicle Liability Insurance Card or pink card for short!
  • Another interesting difference is that, in Canada, if a car is registered then it is considered to be insured. If a Canadian driver stops paying his insurance, then his vehicle automatically becomes unregistered and the driver is driving illegally.
  • An impressive difference between these two countries is that in Canada, some provinces require more than liability coverage for any vehicles on the road. In the U.S., liability is the only required coverage unless you have a lender that requires more coverage as part of your loan contract.

Canadian Auto Insurance vs. U.S. Auto Insurance: Saving Money

The good news is that saving money in either country is the same. You can get free car insurance quotes from multiple car insurance companies by using a free quote tool online. In addition, you can visit individual car insurance company websites for each country to get a quote, although that method is more time consuming.

us vs canadian car insurance

In many cases, you will find that there are major insurance companies that sell insurance in both the U.S. and Canada, so if you are making a move you may be able to stay with the company you are both familiar and comfortable with.

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