Auto Insurance Coverage in Canada

Before even considering car insurance, you must ensure you can legally visit Canada. Fortunately, if you are a U.S. citizen, all you need is a valid passport and a clean criminal record — no visa required.¹ You can stay for up to six months without any paperwork.

However, with current COVID-19 restrictions, it’s a good idea to check before you travel, since requirements can change rapidly. For example, as of early 2022, you need to show proof of COVID-19 vaccination in order to enter the country.²

Nearly all American car insurance policies extend their coverage to Canada. A reciprocal agreement between the U.S. and Canada has led to mutually recognized insurance benefits.³ This means that, in most cases, your U.S. insurance will protect you with the same coverage, limits, and liabilities when you visit Canada.

Your American policy is valid as long as you have tourist status in Canada. U.S. citizens can stay in Canada as a tourist for as long as six months. This means that you can drive in Canada with your U.S. insurance for up to half a year. After that point (such as if you have decided to move to Canada), you should purchase a Canadian policy.

It is always crucial to review your policy before driving to Canada to ensure that your coverage does indeed apply. You should also review the rules of the road in Canada. While they are largely the same as in the U.S., there are some slight differences. For instance, Canadian speed limits are measured in kilometers rather than miles per hour. If you don’t know the difference, you could be caught speeding and face steep penalties.

As in the U.S., you need a valid driver’s license, proof of insurance, and vehicle registration in order to drive in Canada.⁴ You should carry proof of citizenship, like your passport. We also recommend carrying a full copy of the declarations page of your insurance policy that lists your complete coverage information. Additionally, it is worth knowing how to contact your insurance provider from abroad.

A bit of additional paperwork can prevent major headaches if you get pulled over or into an accident. You should request a “Canadian non-resident inter-provincial motor vehicle liability card” from your insurer.⁵ This document serves as official proof that your U.S. policy covers you, with adequate coverage limits, while you are visiting Canada. Your insurance provider can issue such a card, so reach out to your agent for more information. Alternatively, your insurer could write a letter stating that your policy extends to Canada, but it is typically easier to request an official card.

These additional documents are not required but could make your life much easier if you interact with Canadian authorities. We highly recommend obtaining them before you leave on your trip.

As in most parts of the U.S., car insurance is required by law to drive in Canada. However, you should understand some differences in required coverage before crossing the border.

Minimum liability insurance coverage in Canada is higher than in many U.S. states. For example, Canada requires you to carry at least $200,000 (CAD) in liability coverage in every province except Quebec, where the amount is $50,000.⁶

You may need to modify your liability limits before arriving in Canada to comply with local regulations. If you think you may have insufficient coverage to drive in Canada, call your provider, who can help you adjust it to your specific needs.

Most major U.S. car rental companies allow you to enter Canada in a borrowed vehicle. If you plan to drive a U.S. rental car into Canada, make sure to tell the rental company that you will cross the border. You may need to purchase supplemental insurance from either the rental company or your personal insurance provider to ensure coverage. The rental company will likely give you a non-resident insurance card as proof of coverage for Canadian authorities.

Renting a car in Canada as a U.S. citizen is equally easy. If you are over age 21, you just need a valid driver’s license and a credit card. You will also need liability coverage, which you can purchase directly from the rental car company, or use secondary coverage from elsewhere, like a credit card or your personal insurance.

Most major U.S. insurance providers will cover you when you drive in Canada, thanks to the reciprocal agreement between the countries. Here are our reviews of a few top U.S. insurance companies that offer coverage in Canada, including property damage and bodily injury coverage:

• Allstate review
• Liberty Mutual review
• Travelers review
• Esurance review

Remember, if you plan to move to Canada or stay there for the long term, then you should purchase insurance from a Canadian provider. This is only possible once you have a Canadian address.

From an insurance perspective, driving in Canada as a U.S. visitor is easy seven days a week. As long as you do your due diligence to ensure that your coverage will apply there (and it should), you can focus on enjoying your visit and getting around safely.