A step-by-step guide to getting car insurance in Canada as a newcomer/immigrant
There is a multi-step process for obtaining car insurance in Canada as a new immigrant. Working with a broker can help streamline this process and provide support for any questions you have along the way.
Step 1: Understand the Legal Requirement
Car insurance is mandatory in all Canadian provinces and territories. Driving without it is a serious offense with significant penalties (fines, licence suspension, vehicle impoundment). Obtain the minimum coverage required by your province of residence.
Step 2: Document Your Driving History
Before moving, contact your previous insurer to obtain a copy of your driving history. This documentation can help demonstrate your driving experience and potentially lower your premiums in Canada. Most Canadian insurers will accept this proof of safe driving.
Step 3: Exchange Your Driver's licence (if applicable)
- Check for agreements: Determine if your country of origin has a licence exchange agreement with your chosen Canadian province. (Ontario's agreements are listed in the original text; check your province's equivalent.)
- 60-day window: If you have a licence from another province or a country with an agreement, you can drive for up to 60 days using your existing licence. After that, you must exchange it for a Canadian licence.
- In-person application: Licence exchanges are typically done in person at a designated government office (e.g., Drive Test Centre or Service Ontario in Ontario). You cannot apply online.
Step 4: Apply for a Canadian driver's licence
- Gather documents: Prepare your original identification (showing legal name, date of birth, and signature), your original valid foreign licence, proof of driving experience (from Step 2), and any other required documents.
- Eye test: You'll need to pass an eye test.
- Knowledge Test (potentially): Depending on your country of origin and provincial agreements, you may need to take a written knowledge test.
- Road test (if required): A road test might be required, depending on your driving history and licence status.
- Application and fees: Complete the application form and pay the applicable fees.
Step 5: Get insurance coverage for your vehicle
Once you have your Canadian driver's licence, you can start shopping for car insurance. Compare quotes from multiple insurers to find the best rates. Provide all necessary information, including your driving history (from Step 2) and your new Canadian licence.
Step 6: Maintain your coverage
Ensure you keep your insurance policy current and up-to-date - it’s important to understand you will need to renew your auto insurance yearly. Notify your insurer of any changes in your driving situation, such as a new address or new vehicle.
What countries can you switch your licence from?
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Here is the list of countries that Ontario has agreements with to switch or exchange licences with:
- Another Canadian province or territory
- Canadian Forces Europe
- U.S.A.
- Australia
- Austria
- Belgium
- France
- Great Britain
- Germany
- Isle of Man
- Japan
- Korea
- New Zealand
- Northern Ireland
- Republic of Ireland
- Switzerland
- Taiwan
If your country of origin is not on the list:
- You might be able to get reductions in mandatory tests and wait time prerequisites.
- You must still take an eye test.
- You must take the knowledge test.
- Read more about licence exchanges and foreign licence applications if you are new to Ontario.
How much does car insurance cost for newcomers?
As you would expect, car insurance rates for newcomers are higher than the average in your region. A lack of local driving and insurance history are the main contributing factors, and rates will be higher if you are a new driver.
Your unfamiliarity with the driving rules in Canada can also come into play. This lack of experience increases your odds of getting into an accident or getting tickets. Insurers associate this with a higher risk of getting into a collision or filing a claim.
Some insurers take your experience from other countries, which can lower your premiums. Compare quotes with us to get an estimate of your insurance premiums.
