Insurance and registration

By the end of this topic you can

• You can explain why insurance is compulsory.
• You can say whether your province uses a public or private insurer.
• You can list the documents to carry when you drive.
• You can describe what to do with plates when you sell a car in Ontario.

What you need to know and understand

• Auto insurance is compulsory in every province and territory.
• BC (ICBC), Saskatchewan (SGI) and Manitoba (MPI) have public insurers that provide basic coverage.
• In Quebec, the SAAQ covers bodily injury, while property damage liability is bought from private insurers.
• Ontario, Alberta and the Atlantic provinces mainly use private insurers. In Ontario, they are regulated by FSRA.
• In Ontario, registration includes licence plates and a vehicle permit. Plates belong to the owner, not the vehicle.
• New Ontario residents have 30 days to register a vehicle they bring with them.
• Carry your licence, the vehicle registration and proof of insurance whenever you drive.

Public and private systems

In provinces with a public insurer, you buy basic insurance through that insurer, often at the same place you register the vehicle. You can usually add optional extra coverage. In provinces with private insurance, you shop around between companies and brokers. Either way, the province sets the minimum coverage you must have.

Learners and new drivers

• Tell the insurer when a learner will drive the family car. Not disclosing a driver can cause problems with a claim.
• New drivers usually pay more because they have no driving history.
• Some insurers offer a lower rate after an approved driver training course. Ask before you sign up.
• A clean record, with no tickets or crashes, is the best way to lower your premium over time.

Protecting yourself from insurance fraud

1. Buy insurance only from licensed companies, agents or brokers.
2. After a collision, collect the other driver's details and take photos.
3. Be wary of tow trucks or repair shops that push their own services at the scene.
4. Never sign a blank form.
5. Check repair and medical bills carefully.

Common mistakes

• Practising in a car that is not insured or registered.
• Not telling the insurer that a learner is driving the vehicle.
• Leaving Ontario plates on a car you have sold.
• Forgetting to carry proof of insurance in the vehicle.

Test yourself: Insurance and registration

Answer each question, then read the explanation. Questions come in a random order each time.

Go deeper

• Car insurance for new drivers in Canada