To transfer car insurance to a new vehicle in Ontario, contact your insurer or broker before delivery, provide the vehicle and financing details, choose the coverage, pay any premium change and obtain updated proof of insurance. Your policy is updated to list the new vehicle. The seller’s policy cannot be transferred to you.
For this guide, our team reviewed the current Ontario Automobile Policy and Ontario’s vehicle-transfer and registration requirements.
Keep reading for the correct order, the replacement-versus-additional vehicle rule, the information your insurer will ask for and how to avoid a gap when changing insurers or provinces.
Read More: See What Counts as Proof of Insurance in Ontario
How Do You Move Insurance to a New Car?
| Step | What to do |
|---|---|
| 1. Contact the insurer before delivery | Give the expected delivery date and say whether the new car replaces an old one or is being added. |
| 2. Provide the vehicle details | Send the VIN, year, make, model, trim, purchase or lease information, expected use and where it will be kept. |
| 3. Review drivers and coverage | Confirm every driver, liability limit, physical-damage coverage, deductibles, endorsements and lender or lessor requirements. |
| 4. Accept the premium change | Ask for the new annual premium, instalment change and effective date in writing. |
| 5. Obtain proof of insurance | Check the vehicle and policy details on the updated pink card or approved digital proof before driving. |
| 6. Remove the old vehicle at the right time | Do this only after it is sold, traded or no longer needs coverage. Keep written confirmation. |
Read More: See How to Change Car Insurance Mid-Policy
Does the 14-Day Newly Acquired Vehicle Rule Apply?
Ontario’s standard policy can extend coverage to a newly acquired vehicle if you notify the insurer within 14 days of delivery and pay the required premium, but the conditions differ depending on what you bought.
| Situation | Policy condition |
|---|---|
| The new vehicle replaces one already described on the policy | It receives the same coverage as the vehicle it replaces if you notify the insurer within 14 days of delivery. |
| The new vehicle is added to the household | The insurer must insure all vehicles you own, and a claim can use only coverage provided on all your other vehicles. |
| 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. |
Treat the extension as a backstop, not a plan. If the old vehicle lacked Collision or Comprehensive coverage, a replacement vehicle receives that same limited protection. An additional vehicle may also have narrower coverage than you expect. Bind the correct coverage before you take possession or drive.
What Information Will the Insurer Need?
Have the VIN, year, make, model and trim, purchase or lease agreement, delivery date, purchase price, lender or lessor, garaging address, annual kilometres, commuting or business use, anti-theft equipment and all drivers ready. The insurer may also ask for an inspection or other documents.
For Ontario registration, the buyer needs separate proof of insurance. ServiceOntario also lists identification, the Used Vehicle Information Package, bill of sale, seller’s permit with the transfer section completed, odometer information and a Safety Standards Certificate when applicable. A vehicle ownership transfer and an insurance policy update are different transactions.
Will the Premium Change?
Usually. The insurer recalculates the price using the new vehicle, drivers, location, use and coverage. Vehicle value, theft experience, repair costs and safety systems can affect the result, but there is no reliable make-only amount that applies to every driver.
Ask for the annual and monthly difference before the purchase becomes final. Compare the same liability limits, deductibles and endorsements. A cheaper premium with less coverage is not a like-for-like saving.
Read More: What Impacts Your Car Insurance Premium in Ontario
Can You Move the Policy to Another Insurance Company?
You can switch insurers, but that is a cancellation and new policy rather than a transfer of the same contract. Bind the new policy first, match the date and time carefully, obtain proof of insurance, then cancel the old policy in writing. Ask the old insurer for any short-rate cost or balance owing and keep both confirmations.
What If You Are Moving to Another Province?
Tell your current insurer before the move. Coverage and registration requirements differ by province, and your insurer may need to rewrite the policy, refer you to another company or set an end date. Arrange the new provincial registration and insurance within the applicable deadlines. Do not cancel the Ontario policy until replacement coverage is confirmed.
Read More: See How to Transfer Car Ownership in Ontario