If you’re planning to import your dream car from overseas, you need to be extra mindful of the unique insurance challenges that importing can present. Registering and insuring an imported car in Canada comes with its own set of steps, costs and considerations.
Our team reviewed Transport Canada’s vehicle import guidance, the Registrar of Imported Vehicles, the Canada Border Services Agency’s vehicle-import rules and Ontario’s vehicle registration requirements to prepare this guide.
Does insuring an imported car cost more? Can you import cars from anywhere? How do you lower insurance premiums for imported cars? Read on to learn all you need to know about insuring an imported car.
Insuring Imported Cars At a Glance
Not all insurers cover imports. Some companies are hesitant to cover vehicles that weren’t originally manufactured for the Canadian market.
Imported cars may have higher insurance rates than domestic models. Factors such as parts availability and repair costs can influence premium pricing.
Import requirements depend on the vehicle’s age, original market and place of entry. Check whether the vehicle is admissible before purchasing or shipping it.
Unique Insurance Hurdles for Imported Vehicles
Imported cars can present additional questions for insurers. Here are a few challenges you might run into when looking to insure an imported vehicle:
- Vehicle history verification: Older imported vehicles may lack accessible accident or maintenance histories.
- Right-hand-drive configuration: Vehicles imported from countries such as Japan often have right-hand steering. Provincial registration rules can differ, and some insurers may charge a different rate or refuse coverage.
Compliance with Canadian standards: Federal admissibility and modification requirements depend on the import route. Most vehicles built for markets outside Canada or the United States cannot be permanently imported unless a specific exemption applies, including certain vehicles that are more than 15 years old.
How to Register and Insure an Imported Car Step by Step
The process of registering and insuring your imported vehicle depends a bit on where it’s coming from. Here’s a step-by-step guide to registering and insuring your newly imported car:
- Confirm import eligibility: Before you purchase a foreign car, check Transport Canada’s admissibility rules for the vehicle’s original market and age. The RIV program applies to qualifying vehicles entering from the United States. A car built for Mexico or another foreign market isn’t automatically eligible merely because it can be modified.
- Complete the RIV inspection: An RIV inspection applies only when the vehicle enters through the RIV program. If it does, you’ll receive an inspection form and generally need to complete the inspection within 45 days. Exempt vehicles and vehicles entering through other federal routes follow different requirements.
- Obtain provincial safety certification: Each province has its own registration requirements. A vehicle brought into Ontario from another country generally needs a Safety Standards Certificate before licence plates can be attached.
- Shop for insurance: Look for an insurer with experience covering imported vehicles. The insurer may ask for detailed specifications, photos or an appraisal. Try to get written confirmation that coverage is available before purchasing or shipping the vehicle.
- Register the vehicle: Bring all paperwork related to your imported vehicle to your provincial licensing office. This can include customs documents, an RIV inspection, a safety certificate and proof of insurance. You’ll be issued licence plates and a vehicle permit.
Are Imported Cars More Expensive to Insure?
Imported cars may be more expensive to insure. Here are some factors that can affect the premium:
- Repairs may be delayed or cost more due to the limited availability of parts.
- If the model isn’t commonly sold in Canada, insurers may have less information about its claims and repair costs.
Read More: How Much Will Chinese EVs Cost to Insure in Canada?
Bottom line
Compare insurance quotes using MyChoice’s online insurance comparison tool. Not every insurer is willing to cover imports, and the quotes from those that do may differ, so shop around.
Disclose all information about your imported car upfront. Undisclosed modifications or missing paperwork can affect your coverage or delay a claim.
Keep all records related to your imported vehicle. Having a complete paper trail, from the bill of sale to RIV inspection results, can help with registration and insurance approval.
Read More: Is My U.S. Car Insurance Valid in Canada?