Canadian insurers often ignore your foreign driving history — but there are strategies to change that.
Is car insurance mandatory in Canada?
Yes. Car insurance is mandatory in every Canadian province and territory. Driving without insurance is a serious offence that can result in large fines, licence suspension, and vehicle impoundment.
The minimum required coverage varies by province. All provinces require third-party liability insurance (to cover damages you cause to others). Most require accident benefits coverage. Some provinces have government-run insurance monopolies while others use private insurers.
Ontario, Alberta, Atlantic provinces
Private insurance market — you shop and compare insurers
British Columbia (ICBC)
Government insurer (ICBC) provides basic coverage; optional additional coverage from private insurers
Manitoba (MPI)
Government insurer (Manitoba Public Insurance) for all drivers
Saskatchewan (SGI)
Government insurer (SGI) for basic; private for optional top-up
Quebec
Government (SAAQ) covers bodily injury; private insurers cover property damage
Why newcomers pay more for car insurance
Canadian insurers typically calculate your premium based on your Canadian driving record. If you have no Canadian history, many insurers treat you as a new driver — even if you have been driving for 20 years in another country. This can result in very high initial premiums.
The good news: many insurers will accept a foreign driving abstract (your driving record from your home country) to give you credit for accident-free years. This is called an "international driving experience" discount or a "driving history" adjustment.
How to use your foreign driving history to get a better rate
1Request a driving abstract from your home country
Contact your home country's licensing authority and request an official driving record (abstract). It should show your years of experience and any accidents or violations. Have it translated to English or French if needed.
2Get quotes from multiple insurers and brokers
Not all insurers accept foreign abstracts equally. Brokers who specialize in newcomer insurance (such as Intact, Aviva, or newcomer-focused brokers) are often more flexible. Always get 3–5 quotes.
3Ask specifically about newcomer or international driver discounts
Some insurers have formal programs. Belairdirect, Intact, and some regional insurers acknowledge foreign experience. Always ask explicitly — not all agents will volunteer this information.
4Consider telematics (usage-based insurance)
Programs like Intact's myDriving or Belairdirect's Automerit track your driving via an app. Safe drivers earn discounts of 10–25% regardless of their history. Ideal for newcomers with no Canadian record.
Other ways to lower your premium as a newcomer
- ✓Bundle home and auto insurance with the same provider for a multi-policy discount
- ✓Increase your deductible — a higher deductible lowers your monthly premium
- ✓Take a Canadian driver training course — some insurers give credit for approved courses
- ✓Park your car in a garage or secured lot rather than on the street
- ✓Choose a lower-risk vehicle — sedans and minivans cost less to insure than SUVs and sports cars
- ✓Pay annually instead of monthly — most insurers charge a fee for monthly installments
Frequently asked questions
Can I drive in Canada on my foreign licence?▼
Yes, temporarily. Most provinces allow newcomers to drive on a valid foreign licence for 60–90 days. After that, you must obtain a Canadian provincial licence. Some provinces have licence reciprocity agreements that let you skip road tests.
Is it cheaper to insure a used car?▼
It depends on the vehicle. Comprehensive and collision premiums are based partly on the vehicle's value — older vehicles may cost less to insure. However, liability and accident benefits costs are similar for most vehicles.
What if I cannot afford car insurance?▼
In provinces with private insurance, contact a broker to find the minimum liability-only coverage. In government-insurance provinces, basic coverage is universal. Never drive uninsured — the fines far exceed the savings.