Are left-hand drive cars more expensive to insure?

Most countries in North America have left-side driving vehicles, including Canada. If you currently own or are thinking about purchasing left-hand drive (LHD) cars, you may have some questions about insurance costs and whether you'll be paying more for driving on the left-hand side rather than the right. To learn more about insurance costs for LHD cars, stick around for more information.

What is a left-hand drive vehicle?

A left-hand drive vehicle has a steering wheel and driver's seat on the left side. The vast majority of Canadians operate a car that has a left-hand drive unless they are driving an imported car from mainland Europe. In Canada, and according to Canadian safety regulations enforced by Transport Canada, motorists are meant to drive in right-hand traffic, with oncoming traffic coming in on the left.

Understanding right-hand drive vehicles

Right-hand drive vehicles are popular on UK roads and in other countries in Europe. With right-hand drive vehicles, the steering column is on the flip side of the interior. As a result, these cars drive in left-hand traffic rather than the right. While right-hand drive vehicles are less common in Canada, some imported cars with right-hand drive do operate on Canadian roads.

How much does car insurance cost for a left-hand vehicle?

How much it costs to get your vehicle insured in Canada will depend on the type of vehicle you have, amongst other factors. On average, Canadians can expect to pay anywhere between $1000 to over $2000 annually for car insurance. Before getting LHD insurance or RHD insurance, we recommend reaching out to various providers for an insurance quote so you can compare costs and coverage options.

Is a right hand drive car insurance policy more expensive?

When it comes to right-hand drive (RHD) insurance, drivers may experience more expensive insurance premiums. However, whether the vehicle is right-hand driving or left-hand really won't play that much into final expenses. Insurance companies use numerous factors to calculate costs, so at the end of the day, it won't make that much of a difference when taken into account with other calculating factors.

What car insurance do I need for my left-hand drive vehicle?

Whether you drive a left-hand drive car or own a right-hand car, getting insurance is mandatory. Here are the types of auto insurance you can expect to be included in a standard LHD or RHD insurance policy, along with some add-ons you may want to consider adding to your overall portfolio:

Third-party liability insurance

Third-party liability is mandatory, regardless of what vehicle you drive. It protects policyholders in the event they cause bodily harm or property damage to a third party while operating their vehicle. This car insurance policy will cover the cost of repairs, medical bills, legal fees, and other associated expenses. Ultimately, this insurance policy is meant to protect the policyholder's finances and interests in the event a lawsuit is filed.

Accident benefits coverage

Accident benefits coverage is, again, mandatory. The purpose of this insurance policy is to ensure policyholders injured in accidents are able to receive compensation for medical bills, rehabilitation costs, lost income, and other expenses, regardless of who is at fault. This policy will also cover passengers and pedestrians injured.

Uninsured motorist insurance

Uninsured motorist coverage is also included in all standard car insurance policies. Should you be involved in an accident where the other driver is either uninsured or underinsured, this policy will kick into place to ensure you can repair your vehicle if it is damaged. This policy will also cover you if you are involved in a hit-and-run accident where the other vehicle does not remain at the scene of the collision before you are able to exchange contact information with them.

Collision coverage

Collision coverage is another option insurance policy owners of RHD cars and left-hand drive vehicles should consider. If your vehicle is damaged in an accident you are found at fault for, this car insurance policy will cover the cost of repairs and replacements. You will need to pay a deductible to your insurance company before they will cover the rest of the expenses.

Comprehensive insurance

Comprehensive insurance is another optional coverage. It will cover the cost of repairing your vehicle if it is damaged in a non-collision event, including fire, theft, vandalism, severe weather conditions, and any other perils listed in your document. Again, for your comprehensive car coverage to kick in, you will need to pay a deductible, which is a pre-set amount that you agree to pay to your insurance company at the time you purchase or renew your coverage.

Accident forgiveness

Accident forgiveness insurance is a one-time policy that prevents policyholders from experiencing an insurance rate increase following their first at-fault accident. If you have a clean driving record or are a new driver, adding this to your portfolio can benefit you in the long run should you be involved in a collision. This insurance is a way for insurance companies to reward those with a clean driving record by recognizing that mistakes and accidents can happen and to encourage drivers to drive responsibly on Canadian roadways.

Multi-car policy

Do you have multiple right-hand drive vehicles or left-hand drive cars you need to insure? Consider talking to your insurance company about a multi-car policy. This auto insurance allows you to insure all vehicles you own under one plan rather than separate ones, making it easier to manage.

Which is better? Right-hand drive vehicles or left-hand drive cars?

So, which is better? A right-hand drive vehicle or a left-hand drive car? The truth is, it all comes down to your personal preferences. While driving a right-hand drive vehicle in Canada can be a learning curve, considering other vehicles are driving on the other side, those who are car fanatics like the appeal of driving an imported car from overseas.

At the same time, depending on the type of right-hand drive car you choose, you may be paying more for spare parts, given that they aren't as prominent in Canada. So, before making a purchase, take these pros and cons into consideration, as it will help you find a vehicle that suits your unique needs.

Can I ship my left-hand drive vehicles outside of Canada?

Yes, Canadians are able to ship their cars from Canada to another country overseas. You will need to pay an import tax and the cost of moving your vehicle with a cargo ship, as well as additional costs, which is something you'll need to consider when planning your move.

Contact BrokerLink for affordable insurance coverage

Whether you're moving in together, looking for tips and tricks to avoid scams when moving, or want to save on car insurance, the team of insurance experts from BrokerLink are here to be your guide.

We've got years of professional experience and locations across Canada. So, if we're in your neighbourhood, feel free to come in and speak with one of our brokers in person. Alternatively, you can give us a call over the phone to work with our team today from wherever you're located!

And, if you're in a bit of a rush, you can get a competitive insurance quote from the comfort of your own home using our online quote tool that's available on all devices.

Get an auto insurance quote 1-866-724-2372

FAQs on left-hand drive cars

Where is the cheapest car insurance in Canada?

Generally speaking, those living in Quebec tend to have the lowest insurance rates, while those living in British Columbia and Ontario have some of the highest insurance costs in Canada. That being said, where you live is only one of the factors that insurance providers consider when calculating insurance premiums. To help you get a better rate, you'll need a broker who can help you shop around and compare costs. Brokers can also help you qualify for discounts and other types of savings.

Does LHD affect car insurance rates?

Generally speaking, whether you have a left-hand drive car or an RHD car won't really affect your insurance premium at the end of the day. Insurance companies will take into account several factors regarding the vehicle itself, like whether it's a classic car, has any after-market modifications, and more. Beyond this, providers are also looking at your claims history, your driving experience, what types of insurance policies you want, your coverage limits, and more.

To save on your insurance, brush up on safe driving tips!

Can you import a car from Canada to the US?

Are you planning a move and want to import a car from Canada to the US? Unlike moving provinces, moving out of the country and shipping your vehicle to your new destination can be a bit tricky, but it is possible. Ultimately, you'll need to ensure that your cars meet the safety standards proposed by the United States, including traffic regulations related to safety and emissions.

Are imported cars more expensive to insure?

So, are imported cars more expensive to insure with Canadian insurance companies than domestic ones? It depends on the type of vehicle. Imported vehicles, especially of the luxury variety, will cost more, given that they have a higher theft rate, fewer safety features, and more expensive replacement parts than standard cars. That said, depending on where you live in Canada, you may be able to secure a lower rate for insurance if you live in a province or territory with a private insurance system. Before purchasing insurance for your imported cars, it's always best to do a bit of research on your end and compare costs offered by different providers. This can help you get an affordable premium without sacrificing the level of coverage you have.

Do I need to buy insurance before or after I buy a car?

If you're in the market for new wheels, you may be wondering, do I need insurance before or after buying a car? While it's generally a good idea to purchase insurance before picking up your new left-hand driving vehicle, most provinces in Canada have what is known as a grace period, which provides you some time between purchasing your vehicle and getting a new auto insurance policy. Keep in mind that grace periods usually come with various limitations, which you need to be aware of beforehand to ensure you do not have a lapse in coverage. At the time you purchase your insurance and sign your insurance contract agreement, you will need to provide your driver's licence, the VIN plate, a copy of your vehicle ownership, and vehicle registration.

Do I need new car insurance if I move provinces?

So, what are the rules when it comes to car insurance when moving to a new province in Canada? Because each province and territory has its own regulations in terms of what mandatory insurance policies are and whether they operate on a public or private insurance model, you'll need to get a new insurance policy altogether. Before moving, you'll need to request a claims experience letter from your current provider. This document outlines your driving history. You'll also need to get a copy of your driver's abstract and provide these documents at the time you purchase your new coverage.

Do I need a new licence when moving?

Yes, you will need a new licence when moving outside of your current province or territory to ensure that it reflects your new address. The same goes for moving within your current province or territory. Having an incorrect home address on your driver’s licence can lead to potential problems if you are ever pulled over while behind the wheel.

Are RHD vehicles legal on Canadian roads?

Yes, RHD vehicles are legal on Canadian roadways. However, given that RHD vehicles are imported and may not meet Canadian safety standards, you are not able to buy new RHD vehicles and ship them into the country. Only RHD cars that are 15 years old or older can legally operate on Canadian roads.

If you have any questions, contact one of our local branches.