Does U.S. Car Insurance Cover You in Canada?

Thanks to reciprocal car insurance agreements between the United States and Canada, your U.S. car insurance will likely cover you during a road trip to Canada. But before you go, it’s still a good idea to check with your insurer to confirm you’re covered.1

Here’s what you should know about U.S. car insurance coverage in Canada.

Car insurance requirements in Canada

In Canada, it’s illegal to drive without car insurance. Drivers must have minimum auto insurance, known as “mandatory coverage.” Where and how you purchase car insurance can vary between Canadian provinces and territories.

Auto insurance in Canada is similar to the U.S. in that nearly every Canadian province and territory has minimum insurance requirements. But some provinces require you to purchase insurance from the government, while others allow you to purchase from private companies or some combination of the two.2

In Canada, the penalties for driving without mandatory insurance also differ between provinces and territories.

For example, in Ontario, the fine for driving without insurance is $5,000 — plus a tax of approximately 20% — for a first offense, for a total of about $6,250. The amount doubles for each subsequent conviction.3

How U.S. car insurance works in Canada

Your U.S. auto policy won’t typically cover you internationally, but it does offer some coverage in Canada.

As a foreign driver in another country, you’ll usually require an international driving permit (IDP). But the rules are different in Canada, where U.S. drivers typically don’t require a separate travel insurance policy. Because of a reciprocal agreement between the two countries, all you require is a U.S. auto insurance policy for driving in Canada.

If you have car insurance through a large U.S. insurer, it’ll typically cover you for a short-term trip to the Great White North. But it’s a good idea to double-check with your insurance company before you head out on a road trip.

Even if your insurance coverage is valid in Canada, you’ll need to make sure that you meet the local provincial or territorial mandatory minimums. Many insurance policies include “out-of-state” coverage, which provides the minimum amounts and type of insurance required by the province or territory. When traveling, carry a copy of your insurance and registration in case law enforcement asks you to provide proof.

Parts of a U.S. car insurance policy

A U.S. car insurance policy can have different coverages, depending on the type of car insurance you have. While liability-only coverage is required, others are optional, such as gap insurance. Full-coverage insurance isn’t generally required, but if you’re looking for more protection for you and your vehicle, it’s a good policy to purchase that often includes several coverage options in addition to liability.

North American insurance agreements

The U.S. and Canada share reciprocal laws for auto insurance. As a result, your U.S. insurance policy will typically cover you when you drive in Canada. Both countries also have commercial reciprocity laws, which outline a similar agreement for commercial drivers.4

Before hitting the road, it’s always a good idea to check in with your insurance company to ensure you have the coverage you need before crossing an international border.

Companies that provide car insurance in Canada

Most national and regional car insurance companies provide car insurance coverage for U.S. drivers crossing the border into Canada. Here are five car insurers that provide coverage in Canada to consider.

State Farm

USAA

Allstate

Auto-Owners

Commonwealth Insurance

Is state-minimum coverage enough to drive in Canada?

U.S. state-minimum coverage is typically not enough to drive in Canada since most provinces and territories have higher coverage requirements than U.S. states. So if you only carry your state’s minimum liability insurance, you may have to raise your coverage before your trip. Coverage requirements also vary widely across Canadian provinces and territories. 

For example, drivers in British Columbia have to carry up to $200,000 in vehicle liability, $200,000 in third-party liability, and $1 million in underinsured motorist coverage and “inverse liability” coverage. But in Yukon, drivers only need $200,000 in third-party liability and accident benefits.

Driving a rental car in Canada

If you plan to drive a rental car in Canada, your U.S. car insurance may provide some coverage. But before you travel, it’s important to confirm coverage details, including limitations, to make sure you meet all applicable coverage laws while driving in Canada.

Purchasing rental car insurance from the rental agency may be worth it, especially if your U.S. policy only offers liability insurance or you’re unsure about protection in Canada. With a rental car policy, you won’t typically have to pay for damage from collision, vandalism, or theft.

If you have an accident while driving in Canada

If you’re in an accident while driving in Canada, follow the same steps you would if you got into an accident in the U.S.

Documents you’ll need to drive in Canada

Whether you’re on a short trip or driving from coast to coast, you’ll need the following documents to drive in Canada:

• Proof of citizenship: To enter Canada, you’ll need a valid U.S. passport, passport card, or NEXUS card.

• Valid driver’s license: Your U.S. driver’s license is valid while driving in Canada as long it’s not expired.5

• Proof of insurance: Canada requires insurance for all drivers. Be sure to have your U.S. insurance card, plus documentation of any additional policies you have for driving in Canada.

• Vehicle registration: Be sure your U.S. registration paperwork is up to date and in the vehicle. If you stay for longer than six months, you may also need to register your car in Canada.

When to buy a Canadian car insurance policy

You don’t need to buy a Canadian car insurance policy if you’re just visiting the country — even if the trip is a couple of months long. But if you plan to stay longer or move to Canada, you’ll likely need a Canadian car insurance policy and to register your car as a temporary import. Insurance is mandatory in all of Canada, but coverage laws vary by province and territory. 

Where you buy coverage from may also depend on local laws. For example, British Columbia requires drivers to buy mandatory insurance from the government insurer, but drivers can purchase extra coverage from private insurers. In Quebec, you’ll need to purchase bodily liability insurance from the government insurer and property damage coverage privately.

Does U.S. car insurance work in Canada FAQs