Buying a car in Canada

Insuring your vehicle

How insurance premiums are calculated

Car insurance is relatively expensive in Canada and where you live can increase your premiums—for instance, insuring a vehicle in British Columbia or Ontario will cost more than in Quebec or New Brunswick. You could end up paying several hundreds of dollars per month or just CA$50.

Remember to compare quotes from different companies to make the best decision. Pvtistes.net has a special deal with YouSet to help you find the best price on your car insurance.

Regardless of the car insurance company you choose, these are some of the factors to be considered when calculating your premium:

Where you live: Drivers in urban areas will pay more because “higher density equals more risks, more accidents and more thefts.”

What you drive: Some cars are more expensive to insure because “the harder your car is to steal and the less expensive it is to repair, the less you pay for insurance.”

How you drive: “ A consistently accident-and conviction-free driving record can help reduce your premium.” However, it can be tricky for backpackers and newcomers to have their driving experience abroad taken into consideration—some insurance companies will consider you a new driver and charge you accordingly. Desjardins does take driving history into account for foreign licence holders (and they offer good deals too!).

How you plan to use your car: Occasionally drivers will pay more because they use their vehicle a lot and for longer trips.

Tips to lower your insurance premium

• Check insurance costs before buying your car. Insurance premiums are based in part on the vehicle price, cost to repair it, overall safety record and likelihood of theft.
• Request higher deductibles (what you pay before your insurance policy kicks in). For instance, ask for a CA$1,000 deductible instead of the standard CA$500 and save 5-10% on your premium.
• Buy your homeowners and auto coverage from the same insurer (or check if your bank offers good deals for current customers). YouSet will help you search for both home and car insurance at the same time.
• Check if your insurer offers discounts for features that reduce the risk of injuries or theft.
• Adjust how frequently you use your car and keep your mileage low. For instance, use public transit for your daily commute and use your car for weekend getaways.
• Switch to snow tyres in the winter. You could save up to 5% with some insurance companies.
• If you’re considered a new driver, ask for a discount if you take a few defensive driving classes.

The three primary types of coverage

• Liability coverage: All vehicles by law must be insured for third-party liability at a minimum. Liability is to protect you, the driver, in the event that you are responsible for an accident or if you are held responsible. Coverage includes damages, medical expenses, lost wages, as well as other consequences suffered by those who sustained injuries as a result of the accident. In BC, Saskatchewan and Manitoba, auto insurance is government owned and administered through broker agencies. You will deal with private insurance companies in the rest of the country.
• Collision coverage/Accident benefits: It typically covers coverage for repairs after a traffic accident, property damage and any damage to the vehicle that is a result of a collision with trees, buildings, etc. Accident benefits cover you if you are injured or pays benefits if you lose your life in a car accident.
• Optional but recommended coverage: Comprehensive coverage (protects you against loss or damage to your vehicle that is beyond your control, like theft), uninsured coverage (protects you in the event of an accident caused by an uninsured driver), etc.

British Columbia’s mandatory ICBC Autoplan

Auto insurance in BC is mandatory for every driver. There are different types and levels of coverages available but every policy in BC must contain ICBC Autoplan basic car insurance.

ICBC Basic Autoplan insurance includes accident benefits, third-party liability coverage, uninsured motorist protection, coverage for damage or injuries suffered in a hit-and-run and inverse liability protection.

Additional optional coverage can be bought from ICBC or a private insurance company.

ICBC credits you with up to 15 years of driving experience (up from eight years) upon receipt of a driver’s abstract showing the original date that you received your licence. If your licence or driving record is in a language other than English, an ICBC-approved translator located in BC must translate your documents. If you have questions, contact ICBC directly—private insurance companies and agents are less knowledgeable about the process for foreign drivers who’ve moved to BC.