If you’re buying a car in Ontario, contact your insurer or broker before you receive the car, provide vehicle and financing details, choose coverage options, and pay any premium difference. Your insurer or broker will provide new insurance documents showing the new car. They will update your current policy to list the new vehicle. You can’t transfer the seller’s policy.
For this guide, our team reviewed the current Ontario Automobile Policy and Ontario’s vehicle-transfer and registration requirements.
Read More: See What Counts as Proof of Insurance in Ontario
How Do You Move Insurance To A New Car?
Read More: See How to Change Car Insurance Mid-Policy
Does The 14-Day Newly Acquired Vehicle Rule Apply?
Under the Ontario standard auto policy, the insurer will extend coverage to a vehicle that the policyholder buys if they notify the insurer within 14 days of taking delivery of the vehicle and pay the premium for this coverage. Coverage will depend on the type of vehicle.
| Situation | Policy condition |
|---|---|
| The new vehicle replaces one already described on the policy | A replacement vehicle will be insured in the same way as the vehicle it is replacing if notification is given within 14 days of taking delivery. |
| The new vehicle is added to the household | Any claim will be limited to insurance the insurer provides on all the other vehicles you own. All vehicles you own must be insured by the insurer. |
| The vehicle has another policy | It is not a newly acquired vehicle under this extension. |
| You are in the business of selling automobiles | The newly acquired vehicle extension does not apply. |
Make sure you have adequate, accurate coverage before you take possession of or drive the vehicle. For example, if your previous car wasn’t insured with Collision or Comprehensive coverage, the replacement vehicle will have the same coverage gap. An additional vehicle might have less coverage than you expect. Make sure you’re covered.
What Information Will The Insurer Need?
Have the following information ready before insuring your car. The insurer may ask for an inspection or additional information.
Vehicle description: VIN, year, make, model, trim and anti-theft system.
Purchase or lease information: contract, purchase price, delivery date and lessor or lender.
Vehicle use information: garaging address, primary usage, such as commuter or business, and estimated yearly kilometres.
Information about all drivers.
Registering a vehicle in Ontario requires separate proof of insurance. Updating your vehicle ownership is a separate transaction from updating your insurance. ServiceOntario also requires:
- Your identification
- Proof of insurance
Used Vehicle Information Package
- Bill of sale
- The owner’s permit with the transfer portion completed
- Odometer information
- Safety Standards Certificate, when applicable
Will The Premium Change?
Premium changes vary by driver and vehicle. Factors that impact pricing include the car’s value, theft statistics, repair costs and safety features. Typically, an insurer will recalculate your price based on your new car, drivers, location, usage and coverage.
Confirm monthly and yearly costs before purchasing, and compare the same coverage, limits, deductibles and endorsements.
Read More: What Impacts Your Car Insurance Premium in Ontario
Can You Move The Policy To Another Insurance Company?
You cannot transfer a policy between insurers; you must place the new policy and cancel the old one. Make sure you’ve bound your new policy before you cancel your current policy, and make sure the effective dates and times match.
Get proof of insurance. Cancel the old policy in writing and find out if the insurer charges a short-rate cancellation charge or if there’s any amount due on your account. Get written confirmation of cancellation and keep copies of the correspondence.
What If You Are Moving To Another Province?
Don’t cancel your Ontario policy until you have replacement coverage. Auto insurance coverage and registration requirements differ in each province. Let your insurer know that you’ll be leaving the province.
Depending on the insurer, it may be able to rewrite your current policy, make a referral or set an end date for coverage. Make sure you’re insured and register your vehicle in your new province within the timeframes set by provincial law.
Read More: See How to Transfer Car Ownership in Ontario