New to Canada: Getting Auto Insurance

You’ll need to consider what coverage to choose, how to find a reliable provider and how your premiums will be calculated. 

Getting an Ontario licence when you arrive

If you had a licence back home, you can use it for 60 days before switching to an Ontario licence. The process is relatively easy if you’re coming from a country that has an exchange agreement with Ontario and you’ve been driving for more than two years. If not, you may have to take a written and/or road test among other requirements.

New drivers 

If you’re new to driving, you’ll have to earn a learner’s permit or G1 licence, the first step in Ontario’s graduated licensing system. Even with a G1 licence, you can buy a car though you must have a fully licensed driver with you in the front seat while driving and adhere to other restrictions associated with a G1 licence like having a zero blood-alcohol level and staying off the road between mid-night and 5 a.m.

Before you buy a car

There’s much to consider when choosing your new vehicle.

• Do you need a minivan to carpool your kids or live alone and prefer something small and fuel efficient? 
• Do you have the cash to buy a vehicle outright (no interest payments = big bonus) or will you need to finance or lease? 
• Are you comfortable paying a bit more to buy from a dealer, knowing they abide by certain regulations or are you okay with a private sale?

Note that the type of vehicle you get can affect your insurance rates. See how any make and model will influence your premiums by plugging your wish-list cars into our online quote calculator.

Do you absolutely need auto insurance to drive in Ontario?

Yes. Auto insurance is required by law to drive in Ontario, but you don’t need to purchase every option offered by a provider. Mandatory coverage includes:

• Third-party Liability 
• Accident Benefits 
• Uninsured Automobile

You’ll be covered for things like injuries to you or your passengers, and damage or injuries you’ve caused others.

Direct Compensation — Property Damage (DCPD) coverage was mandatory until January 1, 2024 — Ontarians are now able to opt out by filling out Ontario Policy Change Form (OPCF) 49. DCPD insurance ensures your insurance company covers damages to your vehicle if you’re involved in a no-fault collision with a third party. 

What sets it apart from standard liability coverage is that it allows you to claim compensation directly from your insurance provider for property damage, but only when a third-party driver is at fault.

Additional coverage

There’s additional coverage you can add to your policy for extra protection — like Comprehensive Insurance, which covers the cost of your car if it’s stolen, and Family Protection, which increases the amount you get if you or a family member is hurt in a collision caused by an uninsured or underinsured driver. Such coverage will result in higher premiums but give you peace of mind.

How to get auto insurance in Ontario

Onlia Insurance is purchased exclusively online, making it a fast and cost-effective option for shoppers.

The province of Ontario offers three ways to get auto insurance: you can buy directly online (i.e. with Onlia), buy from a broker who represents several insurance companies, or from an agent who sells for one specific company.

The benefits of directly purchasing online insurance

You can go online with any insurance company, plug in your info, receive a quote and sign up in minutes.

Online insurance also gives you full control over your coverage:

• Make changes at any time, from anywhere.
• Add or remove coverages, increase or decrease your deductible or adjust variables that can reduce your premium.
• Provide new information like the purchase of winter tires and see instant savings.

When to work with an insurance broker

If you want to have a contact person that you can relay any updates and in-formation to, to mange your policy for you, a broker can help you with that. But look out for ghost brokers — fraudulent dealers who sell non-existent or inaccurate insurance policies at impossibly low prices.

In car insurance, like everywhere else, what’s too good to be true probably is. Do your research to make sure they’re legit.

How your premium is calculated

Once you get a few quotes you’ll see that rates vary from one company to the next. Factors that go into calculating your price include:

• Where you live 
• The type of car you drive 
• The coverage you choose 
• Your driving history 

How can your driving history affect your insurance premiums when you’ve never driven in Canada? Some insurance providers take your driving experience outside the country into consideration. As long as Ontario’s Ministry of Transportation (MTO) recognizes your foreign driving record, Onlia accepts those years when calculating your fees.

Get car insurance and get driving

Ontario’s beauty is best seen from the open road. You can have the car insurance you need to get going as soon as tomorrow.