Nearest broker: Searching for a broker nearby…
Nearest broker: , Edmonton, AB Phone: 780.755.0110 5020 Lac St Anne Trail N, Onoway, AB, T0E 1V0 Phone: 780.967.2282 , Edmonton, AB Phone: 825.467.5631 206 Pembina Rd, Sherwood Park, AB, T8H 0L8 Phone: 780-732-8616 10060 Jasper Ave, Edmonton, AB, T5J 3R8 Phone: 780-435-3632 , Calgary, AB Phone: 403-532-4882 322 Avenue C S, Saskatoon, SK, S7M 1N4 Phone: 639-398-4170 5317 50 Ave, Taber, AB, T1G 1V3 Phone: 403-223-2377 110a McLeod Ave, Spruce Grove, AB, T7X 2H8 Phone: 780-571-1144 496 Marquis Rd, Prince Albert, SK, S6V 8B3 Phone: 306-970-8080 335 Hwy Avenue N, Picture Butte, AB, T0K 1V0 Phone: 403-732-6023 2201 Box Springs Blvd NW, Medicine Hat, AB, T1C 0C8 Phone: 403-487-5132 550 Wt Hill Blvd S, Lethbridge, AB, T1J 4Z8 Phone: 403-394-1123 734 13 St N, Lethbridge, AB, T1H 2T1 Phone: 403-328-9114 5 St SE, High River, AB Phone: 403-652-4104 9904 103 St, Fort Saskatchewan, AB, T8L 2C9 Phone: 780-998-0881 201-4271 23 Ave NW, Edmonton, AB, T6L 5Z8 Phone: 780-466-2136 3908 97 St NW, Edmonton, AB, T6E 6N2 Phone: 780-465-6900 8170 50 St NW, Edmonton, AB, T6B 1E6 Phone: 780-469-9378 52 Ave, Drayton Valley, AB Phone: 780-621-1707 1331 Macleod Trail SE, Calgary, AB, T2G 0K3 Phone: 403-278-1050 1331 Macleod Trail SE, Calgary, AB, T2G 1E1 Phone: 403-255-2252 234-7 Westwinds Crescent NE, Calgary, AB, T3J 5H2 Phone: 403-775-2100 , Calgary, AB, T3K 0S8 Phone: 403-719-9995 5114 2 St, Boyle, AB, T0A 0M0 Phone: 780-689-3946 50 Ave, Bonnyville, AB Phone: 780-826-3147 12931 20 Ave, , AB, T0K 0E0 Phone: 403-562-2191 2903 Kingsview Blvd SE, Airdrie, AB, T4A 0C4 Phone: 403-945-8885

How does my car insurance work if I buy a car in the United States?

Auto Insurance

By Joanne Lemna | September 27, 2016

We’ve known it for years: The cost of buying a car in Canada is much more expensive than purchasing the same car in the United States. Some studies show that Canadians can pay on average 20% lessfor the same vehicle if they shop south of the border. It’s no wonder Canadians will head south to find their vehicle. We’ll review what you should consider and how your car insurance will work if you buy a car in the United States.

Things to Do Before You Buy a Car in the US

Here are a few things to do before you buy a vehicle in the United States:

  • Verify that the vehicle you want is allowed to be imported from the US to Canada (done online through Transport Canada). This will depend on the car’s age country of origin emissions and licensing.
  • Find a reputable dealer. This will ensure your vehicle is safe reliable and in import condition. Check out reviews!
  • Understand inspection requirements. You’ll need to ensure the vehicle will pass Canadian inspection requirements – Transport Canada can provide more information on federal inspection requirements.
  • Financing may not be an option in the US. Credit scores aren’t universal and your Canadian credit score may not be recognized in the US. This can lead to higher financing rates or ineligibility to finance a vehicle. You may have other issues such as a fluctuating dollar and payment problems if you finance a vehicle in the US.
  • Ensure you secure a bill of sale vehicle title and the car’s VIN. This documentation is required by Canadian customs.
  • Bring along a copy of your driver’s license passport and valid car insurance.
  • You will need car insurance for the vehicle before you drive it off the lot.
  • Contact your insurance broker or company and discuss your plans. They’ll help direct you to insure your new vehicle is insured when you bring it across the boarder.

Car Insurance When Buying a Car in the United States

Car insurance when buying a car in the United States depends on your individual insurance company . You should call your insurance broker or company before you cross the border to discuss your plans.

Normally when you buy a new car there is a grace period when your new vehicle will be covered by the car insurance for your old vehicle (so long as you had a valid car insurance policy). However you will only have the same amount of insurance as you had for the old vehicle. For example let’s say your old vehicle was worth $5000 on the market but your new one is worth $25 000. Your existing insurance would usually only cover replacement up to $5000.

This may not apply in the US. Some insurance companies also only offer limited protection in the US require you to inform them that you’re travelling or may not cover driving in the US at all. That’s why it’s critical to talk to your insurance broker or insurer to ensure you’re covered.

Get A Quote From A-WIN

Get the best insurance deals and stay on budget.

Get A Quote

Life Events - It's Time to Reassess Your Insurance

Whether it’s heading off to university or deciding to start your own business,...

Download

Rogers Insurance and CapriCMW merge to become Acera Insurance.

A-WIN Insurance is part of the Rogers Insurance Group.

Click to learn more about how this merger will impact A-WIN Insurance. Our branches will remain independently owned and operated.