MANY CANADIANS ARE HEADING SOUTH TO BUY THEIR NEXT VEHICLE. A STRONG CANADIAN DOLLAR AND LOWER US PRICES MAKE SUCH PURCHASES A TEMPTING PROPOSITION.
Cross-border car buyers often overlook the process to get proper insurance. Many assume it is no different then if they had purchased the vehicle in Ontario.
Unfortunately this is not the case.
To insure a vehicle in Ontario, it must first be registered with the Ministry of Transportation. When you buy a vehicle within the Province, this is usually already done. When you purchase a vehicle in the US, the process is more involved.
Unless you are a professional, you cannot register a vehicle in Ontario until it has been delivered, certified and updated to meet Ontario Standards. This process often involves moving the vehicle between a variety of places. This cannot happen without the vehicle being insured. But remember, without registration, you can’t get insurance.
Even though your automobile policy provides automatic coverage for any newly acquired vehicle for up to 14 days, some terms, conditions and coverage limitations could leave you vulnerable to a loss.
Given all that needs to be done to get a U.S. vehicle on the road in Ontario, 14 days is likely not enough time. Since there is no standard policy extending coverage beyond the 14-day allowance – all carriers deal with this issue differently – this provision should not be used if it can be avoided.
Your best option is to contact us before making a U.S. vehicle purchase. In most cases, we will make sure you are adequately covered before taking delivery of the vehicle. As insurance experts, we’ll take the time to explain your options and ensure the appropriate amendments are made to your policy.