You would think that all car insurance is the exact same. Wrong. It is not true. Anyone moving from the United States to Canada, or from Canada to the United States, will discover that the car insurance policies in each country are different. Although it may seem difficult to understand how car insurance can vary between countries, because there are so many stipulations, you should be aware that there are also differences in the policies.
Canadian insurance basics
Let’s suppose you are a U.S. Citizen who is moving to Canada. It is likely that you are aware that insurance cards are available in the United States. You will receive something very similar in Canada but with a different name. You will call it your Canadian Inter-Province Motor Vehicle Liability Insurance Card or your “pinkcard”. It works in both countries in the same way as the Canadian Inter-Province Motor Vehicle Liability Insurance Card. You can show proof of insurance on request, and use it in an accident.
The way that injury claims are dealt with can differ from one province to the next. Quebec has a law that requires injury claims to be handled by a government program and not a private insurance company. The private insurer will take care of any claim if the accident or injury is not within Quebec.
Canadian law requires private insurers in the territories and provinces to have the same set of terms and conditions as the policy. All terms and conditions between insurance companies will be the same. The provincial and territorial governments set further standards and decide on the lowest liability limits for the vehicle.
A second difference between U.S. and Canadian car insurance policies is the fact that Canadians don’t receive printed policies if they are insured by a government insurer. Since the registration of the vehicle is proof that the insurance was purchased, it cannot be done without the insurance.
U.S. U.S. Insurance Basics
Canada has drivers required to be insured by a private insurance company or a government insurer. The United States, however, is full of private insurers. Each state regulates them. In most states, it is mandatory that an individual have at least some liability insurance. Liability covers bodily injuries liability. Liability insurance is cheaper than full coverage for many people who don’t have liens on vehicles. If there is a lien on the vehicle, full coverage is required. This is usually a lien on the car that indicates the bank owns it.
Another difference between the U.S. and Canada is the fact that Canadian provinces Manitoba, Quebec and Saskatchewan don’t allow individuals to sue for pain or suffering after a motor vehicle accident. This is only possible if there has been any permanent disfigurement, severe mental or psychological harm, or death.
