International drivers' guide to car insurance for newcomers to Canada

Whether you’re making Canada your new home, here for your studies, or just visiting as a tourist, driving in Canada can be an exciting part of your experience here. But before you get in the driver’s seat, it’s important to become familiar with the legalities of driving in Canada, from being properly licenced to making sure you have the right insurance.

Here’s what you need to know about driving and car insurance in Canada, whether you’re an international driver getting behind the wheel to head to work, commute to class, or explore Canada’s many scenic routes.

To get a driver’s licence in Canada, you’ll first need to prove your identity and that you live here. This proof can vary depending on where in Canada you reside. Proof of identity usually means providing government ID or your government visa (for example, the Ontario government accepts documents such as a Canadian or foreign passport or certain immigration documents as proof of identification) while documents that show your name and Canadian address, such as a utility bill or lease agreement, are often accepted as proof of residence.

You also must meet the minimum age requirement, which typically is 16 years of age or older, but again, this can vary by province or territory. And in all provinces and territories, you’ll also need to pass a vision test to make sure you can see well enough to drive safely.

Do you already have a valid driver's licence from another country? If yes, you may be able to use it temporarily when you first move to Canada. Each province offers a grace period, typically ranging from 60 to 90 days, during which you can use your licence from your home country, as long as it's still valid. This gives you time to get settled in and to apply for a Canadian driver's licence.

You can extend the period you can drive using your international or foreign licence if you've obtained an International Driver's Permit (IDP) from the country that issued your driver's licence — you can see a list of countries that issue and accept IDPs here. Keep in mind, however, that IDPs are only valid for a year after the date of issue, making them more suitable, for example, for visitors planning on an extended stay in Canada.

If you don’t have an international driver’s licence, or if it has expired, you’ll need to apply for a Canadian driver's licence right away— it's a good idea to start the application process early because you can’t legally drive in Canada without a valid licence. The application involves a number of tests, so preparing ahead of time will help you transition more smoothly to driving in Canada.

If you already have a valid international driver’s licence, you may be able to simply exchange this licence for a Canadian one. It all depends on whether the driver’s licence you have is from a country that has a reciprocal licensing agreement with the province or territory you’re in.

To find out if you can exchange your foreign licence, check with your province or territory's official website. For example, you can see the Ontario government's list of eligible countries here, and Alberta posts its list of countries it has a reciprocal licence exchange agreement with here.

Your provincial Ministry of Transportation can guide you through the exchange process if there’s an applicable agreement in place. If you're eligible, you'll likely need to submit your current licence, pass a vision test, and possibly provide additional documentation, but by exchanging your licence, you may be able to bypass some of the usual testing requirements.

If you need to apply for a driver’s licence, the process generally involves taking and passing the following tests:

• a written test that tests your knowledge of provincial traffic rules and regulations
• a vision test to show you can meet the required vision standards for safe driving
• a practical driving test that shows your driving skills and competence on the road

The specific application requirements, restrictions, and processing times vary depending on your province or territory, so it’s important to check with your province's Ministry of Transportation for full details. For example, here's the Ontario government's driver licensing page.

Once you’ve successfully passed any necessary tests and finalized your application with all the required documentation, you’ll be issued a Canadian driver’s licence.

Just like you need a valid driver’s licence to legally drive in Canada, you’ll also need car insurance. Car insurance is regulated provincially, so the rules for what your insurance will cover can change depending on your province or territory.

But the basic idea behind this requirement is always the same: Your auto insurance helps cover costs if you're in a car accident that hurts someone else or damages their property. This is known as third-party liability insurance, and it’s a key part of driving safely and legally here.

That’s just the mandatory insurance your province or territory requires, though. If you would like more protection, you can choose to add optional coverage.

For example, collision coverage is optional coverage that helps with repair costs if your vehicle is damaged in an at -fault or partially at-fault accident. Comprehensive insurance is another kind of optional coverage offered by Canadian insurers. It provides you with financial protection if your vehicle is stolen or damaged by certain events such as hail or vandalism.

Getting car insurance in Canada depends on whether your province or territory has a private insurance system, a public one, or a combination of the two.

In provinces with private systems (Ontario and Nova Scotia, for example), you’ll purchase your auto insurance from private insurance companies. If you’re in a province with a public insurance model, like British Columbia, car insurance is managed by a government-run insurance corporation. And Quebec has a combined system, with public insurance covering bodily injuries only, and all other types of coverage handled by private insurers.

To see if your province or territory has a private or public system, head over to our article about how car insurance works in Canada.

If you're applying for insurance in a province with a privately run insurance system, you'll start by completing an application to get a quote.

One of the factors insurance companies look at when calculating premiums is your driving record and history of insurance claims, so it may be helpful to provide proof of your past driving experience in your home country (although this will depend on the insurer). 

If you’ve obtained several competing quotes,  compare them to find the coverage option that best fits both your needs and your budget.

And if you're in a province with a public or hybrid system, contact the government insurance provider to learn more about the specific procedures required and the coverages available. 

There are many ways to get a more affordable car insurance plan or policy as a newcomer to Canada! As we mentioned above, depending on the insurance company you're purchasing from, it may be helpful to provide documentation of your past driving record and insurance history from your home country.

But there are other ways you can save on your insurance. For example:

• Complete a driving course. Some insurers offer a discount for the successful completion of a driver's training course—and, as a bonus, completing a course will also help prepare you for any driving tests you might need to take, as well as give you a deeper understanding of local traffic rules and regulations. 
• Choose your car with your insurance in mind. If you'll be purchasing or leasing your vehicle, keep in mind that the type of car you'll be driving—for example, the make and model, as well as the age—is another factor that insurance companies take into consideration when determining your premiums.
• Check for discounts. Insurance companies offer a range of discounts, so be sure to look for discounts you might qualify for. At TD Insurance, for example, we have over 30 ways to save on your home and auto insurance.
• Bundle your insurance. You probably also need tenant or home insurance, and if you "bundle" your car insurance with your other insurance needs ("bundling" means holding more than one type of insurance with the same insurance company), you can often get a better rate.

Interested in getting started with TD Insurance for your car insurance needs? You can get a quote in minutes for a policy that's personalized to your needs. 

Sources:

¹ https://travel.gc.ca/travelling/documents/international-driving-permit