Driving without insurance in Canada is illegal. The same can be said for driving without a valid car registration. But what if the registered vehicle is under a different name than the insurance coverage? Can car registration and insurance be in different names? Vehicle ownership and car insurance can be confusing, but at BrokerLink, we've got you covered.
Before you buy insurance, stick around and read through our comprehensive guide below to ensure you're following the rules of the road in Canada.
What is a car registration?
A vehicle registration is a document a registered owner will receive when they register their vehicle with a government service centre in their province or territory. By registering your vehicle, the government establishes a connection between you and the car and, in return, will provide you with a unique licence plate number that will allow you to be identifiable on the road. Having a valid vehicle registration is mandatory if you wish to legally operate your vehicle on public roadways.
Can I get a car insurance policy without being the legal owner of a vehicle?
No, you cannot purchase an auto insurance policy for a vehicle you do not legally own. Only the legal owner of a vehicle with the car registration under their name can purchase coverage with a car insurance company for their automobile.
But don't panic. There is still a way you can get auto insurance if you are not the legal owner of a vehicle with non-owner car insurance, which we've outlined for you below:
Non-owner car insurance
Non-owner car insurance is a type of insurance policy specifically designed to protect those who drive on a regular basis without actually owning a vehicle. For example, if you drive your friend's car, a family member's vehicle, or rent cars often, this type of car insurance plan is something you should seriously consider. All you need to purchase non-owner car insurance is a valid driver's licence.
But there's a catch. If you live with a family member and they have a vehicle you drive often, an insurance company will likely not let you purchase non-owner car insurance. Instead, they'll require the primary driver to add you to the existing policy. For non-owner car insurance to work, you can not live in the same household or at the same address as the one listed on the car's registration. So, if you use a friend's vehicle or rent a car from a leasing company, this type of auto insurance would be a great fit.
What does a non-owner policy cover?
Driving without insurance in Canada is illegal. Luckily, with a non-owner policy, you can expect the following types of auto insurance coverage to be included:
Third-party liability coverage
Third-party liability car insurance is a type of mandatory coverage that all Canadians must purchase. However, the minimum amount of coverage legally required will vary between provinces and territories.
Liability car insurance coverage protects policyholders in the event they cause bodily injury or property damage to a third party while operating a motor vehicle. Without insurance coverage, you could be forced to pay directly out of your own pocket for any costs that arise as the result of a lawsuit, which is where this insurance comes into play. With a liability policy, your insurance company will pay for the cost of repairs, replacements, medical bills, legal fees, settlement funds, and any other associated costs that may arise as the result of a lawsuit up to your policy limits.
Accident benefits insurance
Accident benefits coverage is another legal requirement for all Canadian drivers. With this car insurance policy kicks into gear in the event you, your passengers, or pedestrians are injured as the result of a car accident, regardless of who is at fault for the collision. Accident benefits will cover the cost of medical bills, rehabilitation costs, lost wages, and more, depending on the specifics listed in your exact insurance documents and are ultimately there to ensure you are able to recover from your injuries without having to worry about your finances.
Uninsured motorist coverage
The last type of mandatory auto insurance coverage all motorists in Canada must purchase from an insurance provider is uninsured motorist coverage. The purpose of uninsured motorist car insurance is to ensure policyholders are fairly compensated if they get into a car accident with a car owner who is uninsured or does not have enough coverage. This insurance policy will also protect you if you are involved in a hit-and-run accident where the other motor vehicle flees the accident scene before you are able to exchange information.
Collision car insurance
Collision car insurance is a type of additional coverage option that you can add to your insurance portfolio to supplement your policy. With collision car coverage, the insured driver is protected from financial loss if their vehicle is damaged in an accident by covering the cost of repairs or replacements of said vehicle. Collision car coverage has a deductible, which is a predetermined amount you must pay out of pocket before your policy will kick in and cover the remaining costs.
Comprehensive car insurance
Comprehensive car coverage is another optional policy to think about when purchasing insurance from a licensed insurance agent. Unlike collision insurance, your comprehensive policy will cover the cost of repairs and the replacement of your vehicle is damaged as a result of a non-collision event. For example, common insured perils include theft, vandalism, fire, and damage from severe weather events.
What non-owner car insurance will not cover
While non-owner car insurance offers the same types of policies that any other type of policy would include, it will not provide coverage for the following:
Accident forgiveness
Accident forgiveness is a one-time insurance policy you're able to add to your coverage. It is a great option for those who have never been in an at-fault accident or are new drivers. Normally, following an at-fault accident, your insurance company will increase your insurance rates the next time you're up for a renewal. However, with accident forgiveness, you can avoid a rate increase following your first accident. The goal of this car insurance plan is to reward those who otherwise maintain a clean driving record over the years.
How to save on your car insurance costs
If you're the primary policyholder when it comes to your vehicle insurance policies, we understand why securing affordable coverage that doesn't sacrifice how much protection you have is important. Luckily, there are a couple of tips and tricks you can use the next time you're up for a renewal that can help you lower your car insurance premiums. Here's what you need to do:
Shop around
One of the best things you can do if you live in a province that operates on a private insurance model is shop around for your policy. Shopping around with different insurance providers not only allows you to compare insurance policies but can also help you find a better deal somewhere else.
Keep in mind, however, that a lot of the time, the cheapest insurance policies out there aren't always the best. It's important to find a balance between affordability and the amount of coverage you receive so you can have peace of mind knowing that you're protected in the event you need to file an insurance claim.
Work with a broker
There are numerous benefits of an insurance broker, and one of them is that they have access to policies, discounts, and pricing structures of several insurance providers across Canada. Because brokers work independently from providers, this access will allow you to secure the best deal on your car insurance.
Another benefit is that working with brokers is completely free, so you'll never have to pay them to receive unbiased guidance when looking for an insurance policy.
Bundle your home and car insurance policy
Chances are you have more than one type of insurance policy. Whether it be home, pet, travel, or another type of coverage, you can save on your premium by bundling your current policies with your car's insurance. Oftentimes, insurance companies will offer customers a bit of a discount when they choose to bundle all of their insurance policies with them as a thanks for remaining loyal and doing business with them.
Ask about discounts
Speaking of discounts, did you know that there are numerous savings that you may be eligible for? Whether it be for not having a poor driving history, having winter tires on your car, installing security features to prevent theft, or being a member of a professional organization, these are just some of the discounts that you could qualify for.
So, the next time you're speaking with your insurance agent or broker, don't hesitate to ask them about all of the potential savings you can get!
Increase your deductible
A deductible is the amount of money you're required to pay for certain car insurance policies, including comprehensive and collision insurance before your provider kicks in and pays the remaining costs. At the time of your renewal, you'll be able to select the deductible amount you want. By opting for a higher deductible, you can decrease your premium a little.
Keep in mind that opting for a higher deductible should only be used in a scenario where you're able to comfortably afford to do so and are willing to pay more at the time of a claim.
Consider your coverage limits
Another way to potentially lower your premiums for your own insurance policy is to consider your coverage limits. Vehicle owners in Canada have a different minimum amount they need to purchase when it comes to liability coverage and other policies. By reviewing your current coverage and evaluating your driving habits, you may be able to lower your insurance limits in certain circumstances and save.
Again, it's important to find a balance between affordability and coverage to ensure that you will be adequately protected if you do get into an accident in the future. Otherwise, you can be in a serious financial loss should someone file a claim against you for injuries or damages.
Pay for your car insurance policy upfront
Have some extra cash lying around? Why not pay for your insurance policy upfront rather than on a monthly basis? Insurance companies will add an administration fee to those who pay for their insurance policy monthly, given that it costs them money to process the payments they receive from customers. Therefore, by paying for your insurance policy upfront, you can avoid these added fees and save a bit on your overall costs!
What documents will an insurance company ask for when purchasing coverage?
Do you need to purchase an insurance policy but aren't sure what documents you need to bring with you? Beyond a copy of the vehicle registration, you will also need to bring your driver's licence, a copy of the renewal notice you received in the mail, proof of vehicle ownership, and a family member if you are purchasing non-owner coverage.
Are there any disadvantages to having a car registration and insurance under different names?
Although Canadians are able to have car registration and insurance under different names, there are some potential drawbacks that you need to be aware of before purchasing coverage:
You could be denied insurance coverage
Depending on the insurance company, there's a chance you could be turned away and unable to purchase insurance if you do not have a car registration that matches your name. Some providers are incredibly strict when it comes to car registration and insurance. To avoid this, you may want to call ahead and ask before going into the office to purchase your insurance.
It could complicate your claims process
If you're involved in an accident or the vehicle is damaged by a non-collision event, having a car registration and insurance under different names could complicate the entire claims process. Adjusters conduct thorough investigations when customers file claims. As such, if you are involved in an accident and your name does not match the name on the registration, there is a chance that the company withholds any settlement funds or pays the owner of the vehicle for damages rather than you.
You could be committing insurance fraud
To avoid paying higher insurance premiums, sometimes drivers will insure their vehicle under a friend's or family member's name if they have a bad driving record. Should your insurance company suspect this, you could be denied coverage and face consequences for attempting insurance fraud.
Contact BrokerLink for affordable auto insurance!
Looking to save on car insurance? Interested in learning the benefits of an insurance broker? BrokerLink is here to help in any way we can!
BrokerLink is one of Canada's top brokerages, and it has years of experience partnering with Canadians from coast to coast on their insurance journey. With over 200 locations across the country, there's a chance we could be in your neighbourhood. If we're nearby, come visit us in person to speak with a broker face-to-face.
If you aren't able to make it in, don't hesitate to give us a call over the phone for more information about car insurance coverage. You can also get a competitive quote for free using our online quote tool, which is available on all devices!
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FAQs about Car Insurance and Registration
What is the difference between a car registration and a car title?
Car registration and title are two terms that often get thrown around and often interchangeably when we're talking about car insurance. So, what exactly is the difference between title and registration? Car titles are legal documents that state who the owner of a specific vehicle is. Within the title document, specific details about the vehicle will be outlined, including the make, model, VIN, and date of sale. In contrast, vehicle registration is a document that states your vehicle has been registered and acknowledged by a government agency in your province or territory and has met certain requirements that allow you to operate your car on Canadian roadways. When you register a vehicle, you will receive a licence plate so you are identifiable by law enforcement and other motorists.
How can I register my vehicle?
To register your car in Canada, you will need to find a service centre in your province. Most of the time, you will not need to book an appointment, as walk-ins are available. However, you should still confirm this by looking at the centre's office website before going in. To register your vehicle, you will need to bring your driver's licence, proof of purchase or proof of transfer if you've bought a used car, and proof of insurance. At the time of your appointment, you will need to pay a registration fee, which will vary between provinces.
How much does a vehicle registration ticket cost?
All drivers in Canada must register their vehicle before they are legally able to operate it on public roads. So, how much is the cost of a registration ticket? Well, it depends on which province or territory you live in. However, you can expect to be ticketed a minimum of $230 if you are pulled over without a valid car registration. To avoid fines and other consequences, it's essential that you, as a motorist, remain up-to-date on your registration and insurance each year.
Can two people have joint ownership of a vehicle?
Yes, you can co-own a vehicle with more than one person in Canada. By being a co-owner, all parties listed on the vehicle's title will have certain ownership rights and, of course, responsibilities that come along with owning a car. Oftentimes, joint ownership is done to qualify for a car loan, and it's common for friends or family to co-own a vehicle to save on costs. Keep in mind that co-ownership isn't for everyone, and before you choose to own a vehicle with someone else, it's important to weigh the pros and cons of doing so.
How does joint ownership work with insuring a car?
When it comes to joint ownership and car insurance, owners can still go ahead and purchase coverage. However, there can only be one primary driver when it comes to coverage. The other owner can be listed on the insurance as a secondary or occasional driver for coverage purposes.
Can you register a car online?
Some service centres will allow you to register your vehicle online rather than having to go into a physical location. Typically, you can find this information directly online. Keep in mind that you'll still need all of the required documents in order to correctly register your car.
How can I get a copy of my vehicle registration?
If, for some reason, you are unable to find the original copy of your vehicle registration, you'll be able to go to a service centre in your neighbourhood and ask for another copy of the documents. You may need to pay a fee to receive a new printed copy. To avoid misplacing your registration, we recommend making a copy of it and keeping it in a safe location on your property, just in case.
If you have any questions, contact one of our local branches.
