If you're thinking about importing cars from overseas into Canada, you're likely taking a look at cost and debating whether or not it makes sense financially to do so, including how much car insurance will be for an imported car compared to a non-imported car.
To learn more about whether normal car insurance will cost the same as import car insurance, stick around!
What standards does an imported car need to pass?
Cars imported into Canada must follow strict safety and environmental standards to be able to operate. The specifications for each car and model will vary depending on its safety features, engine size, right-or left-hand drive cars, a nd more. To determine if your imported car is eligible for Canada, you can plug in the details of your vehicle into the Registrar of Imported Vehicles online website and customize your results based on which province or territory you live in.
How much is auto insurance for an imported car?
When it comes to insuring a Japanese import, UK cars, or car imported from outside the EU, insurance companies in Canada will take into account your vehicle type, among other factors. Because there are numerous factors providers consider, you won't necessarily pay more for your imported car unless there are reasons why it would be a higher risk to insure. For example, its engine size, top speed, and after-market modifications can all play a role in how much your imported car insurance is.
As such, you can anticipate paying anywhere between $1000 to $2000 annually, if not more, depending on which province or territory you live in, your previous driving history, the type of coverage you choose, and more. Therefore, before purchasing insurance, we recommend getting a quote from various providers before signing your insurance contract agreement.
What does imported auto insurance cover?
So, your imported car is finally in Canada. The next thing you'll need to do is purchase import car insurance. To ensure you're protected behind the wheel, you'll need the following types of auto insurance:
Third-party liability insurance
Third-party liability insurance is a type of mandatory coverage required for all Canadian drivers and is found in all standard car insurance plans, regardless of whether you drive a domestic or imported vehicle. If you are driving your vehicle and you end up causing bodily harm or property damage to a third party, this portion of your car insurance will cover the cost of repairs, medical bills, legal fees, and other associated expenses that may arise if a lawsuit is filed against you.
Uninsured motorist coverage
The next portion of your imported car insurance is uninsured motorist coverage. In the event your imported car is involved in an accident with another motorist who is either uninsured or underinsured, this insurance policy will ensure you are compensated for damages. It will also provide you coverage if your imported car is in a hit-and-run accident, where the other driver flees the scene.
Accident benefits insurance
The last portion of imported car insurance is accident benefits coverage. If you are involved in a collision while driving your imported car and either you, your passengers, or a pedestrian are injured, regardless of whether you or the other driver is at fault, this insurance will cover the cost of medical bills, rehabilitation costs, lost wages, funeral expenses, and other costs that may incur during your recovery.
Collision coverage
While collision car coverage is not automatically included in import car insurance, it's something you still need to consider for your imported vehicles. With collision insurance, any damages that occur during a collision where you are found at fault are up to your coverage limits. With this type of insurance coverage, you'll need to pay a deductible to your insurance company before your policy kicks into place, which covers the remaining costs of any damages.
Comprehensive car insurance
Comprehensive car coverage is another optional car insurance option for imported cars, available from all standard insurers in Canada. Essentially, comprehensive insurance will cover the cost of repairs for your imported car if it is damaged by a non-collision event. For example, if a tree falls on your Japanese import car and smashes the windshield, or someone vandalizes your vehicle during a burglary, your comprehensive insurance will kick into place. Similar to collision coverage, you'll need to pay a deductible to your provider before your claim is approved.
Accident forgiveness
If you're a new driver or have never been in an at-fault car accident, getting accident forgiveness coverage for your imported cars is a good idea. Normally, after an at-fault accident, insurance providers will increase your insurance premiums. However, with accident forgiveness, you can prevent higher insurance costs following your first car accident for which you are found at fault.
Keep in mind that this is a one-time insurance for standard cars and imported cars, meaning once you use it after your first at-fault accident, it will be removed from your insurance plan.
To prevent collisions and maintain a clean driving record, brush up on safe driving tips from BrokerLink!
Multi-car policy
If you have several imported cars, you may want to consider purchasing a multi-car policy from your insurance provider. With this type of auto insurance, you'll be able to insure imported cars under one policy rather than having separate policies for each vehicle. Not only can this help you save money on your premium, but it can also help you manage your policy more efficiently.
RHD car insurance
Depending on where you shipped your imported car from, it will either be a right-hand drive or a left-hand drive car. In the event that it is a right-hand drive vehicle, you may want to consider RHD insurance. With this insurance, your insurance providers will take into account the different risks associated with driving on the other side of a vehicle cabin.
How can I save on import car insurance?
If you're looking to save on car insurance for your imported vehicle or other car, there are a couple of tips and tricks you can do that can help you keep more money in your pocket at the end of the day. Here's what you need to do:
Shop around
If there's ever a time that you need a broker, it's when you're shopping for insurance. Brokers work independently from insurance companies and are able to help you compare quotes, look for competitive prices, and find coverage options that meet your unique needs and budget. You can also count on brokers to provide unbiased advice and answer any questions you may have throughout the entire process.
Ask about discounts
Did you know that there are numerous discounts and savings out there that you may be eligible for? Whether it be having a clean driving history, installing safety features on your vehicle, being a member of a professional organization, or bundling your coverage with other policies you may already have, the discounts are endless! You'd be surprised at how many savings you may qualify for! So, when getting coverage, make sure you ask your insurance agent or broker to go over any discounts that you're eligible for. That way, you can save some cash without sacrificing how much coverage you have.
Consider your policy limits and deductible
Higher policy limits equate to more protection from your coverage in the event you need to file a claim with your provider in the future. As a result, you'll need to pay more for your coverage than someone who chooses a lower policy limit. So, consider finding a limit that meets your unique needs and budget. Remember, the key is to find a limit that balances affordability and protection.
At the same time, you might also want to consider increasing your deductible. As you know, the deductible is the amount you need to pay before certain policies like collision and comprehensive will cover the rest. By opting for a more expensive deductible, you're taking on more responsibility for the repairs, which lessens the amount of money your provider will need to pay. And in return, they'll lower your premium. Again, you'll only want to increase your deductible if you can comfortably afford to pay that amount should you need to file a claim.
Pay for your car insurance upfront
The last thing you can do is consider paying annually for your coverage rather than on a monthly basis. Insurance providers typically add an administration fee to those who pay monthly as they need to process their payment each time, which costs them money. So, by paying for your coverage in one go, you can avoid these added fees and save some money at the end of the day!
Get affordable car insurance with BrokerLink
Getting insurance for your imported cars can be daunting, which is why the experienced brokers from BrokerLink are here to help guide you every step of the way. Whether you want to compare quotes, have questions about insurance before or after buying a car, or other insurance-related assistance, BrokerLink has got you covered.
BrokerLink has locations across Canada, which means there's a chance we may be in your neighbourhood! If you're close by, come on in and work with one of our fantastic brokers in person.
If we're not in your neighbourhood, don't panic--you can also reach us over the phone during business hours to speak with one of our team members. And if you're simply looking for car insurance quotes, you can get a free, competitive quote from the comfort of your own home at any time, right from your device!
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FAQs about imported cars
Why should I get a Japanese import car?
If you're in the market for a new vehicle, you may want to consider a Japanese import. Japanese import cars are known for their outstanding performance, fuel efficiency, sleek designs, powerful engines, and more. That said, like buying any vehicle, you'll need to find something that fits your needs and budget. So, don't forget to do your own research, learn more about other imported cars, and ensure that the vehicle you're considering meets Transport Canada's safety standards.
Can I import a car from Canada to the US?
If you're planning a move and moving in together with your friends, family, or spouse who is currently living in the United States, you may be wondering if you can import a car from Canada to the US. The short answer is yes, you can. However, before your vehicle can get coverage, you will likely need to pay an import tax and ensure that it meets US safety standards. There may also be specific regulations that are state-governed, depending on where you're moving. So, make sure to take a look beforehand to ensure you don't run into any trouble having your vehicle imported. You also need to work with a reputable moving company to ensure you avoid scams when moving your cars.
Do I need a new licence and new car insurance if I move to a new province?
Moving provinces can be exciting but also confusing when it comes to your driver's licence and insurance requirements. So, do you need a new licence when moving out of the province? What happens with your car insurance when moving to a new province? Because your driver's licence and insurance are tied to your address, you'll need to cancel both once you reach your new destination and reapply in your new province. When getting your cover, you'll need to bring your vehicle identification number (VIN), a copy of your new address, registration number, and your current coverage to your new insurance company.
If you have any questions, contact one of our local branches.
