Car insurance in Canada for newcomers: why it is expensive and how to lower it
Who sells you insurance in each province, what pushes your price up in particular, how to get your driving experience from home recognized, and which discounts you are entitled to ask about.
The short answer: car insurance is expensive for newcomers because the price is based mainly on how many years you have held a licence, how many years you have gone without a collision, the car you drive and where you live. When you arrive in Canada your local record is empty, so you are treated like a driver with no history. There are three steps to lowering the price: prove your experience from your home country with official, translated documents; ask about every discount that applies to you; and compare quotes with equivalent coverage. In British Columbia, Saskatchewan and Manitoba, basic insurance comes from a public insurer, so there is less room to shop around than in Ontario and Alberta.
Why is the price higher for you in particular?
Ontario's Financial Services Regulatory Authority (FSRA) explains that your premium depends on the company you choose and on your "risk characteristics", including:
- How many years you have held a driver's licence.
- How many years you have gone without a collision.
- The car you drive; the higher the theft rate for that model, the higher the price.
- Where you live.
- How you use the car: commuting to work every day or personal use, and how far you drive.
The first two are your real problem. If you do not provide proof of your experience back home, you may be priced as if you got your licence yesterday. That is why the thing that lowers your price most in your first year is an official document, not negotiation.
Who sells you insurance? Not every province works the same way
| Province | Mandatory basic insurance | What it means for you |
|---|---|---|
| British Columbia | Basic Autoplan from ICBC, the public insurer | Basic coverage comes from one provider. Extra coverage (collision, comprehensive, higher third-party liability) is optional |
| Saskatchewan | Basic plate-based insurance run by SGI, paid with your vehicle registration | Covers damage to your vehicle with a $700 deductible for most vehicles, your personal injury and your liability to others. The deductible will rise as of 1 January 2027 |
| Manitoba | Autopac from MPI; no vehicle can be driven in the province without registration and insurance | You must transfer your vehicle plates and your licence within three months of arriving. Bring your previous driving and insurance records to qualify for discounts |
| Quebec | A mixed system: the SAAQ compensates bodily injury, and private insurers cover property damage | The law requires every vehicle owner to carry civil liability insurance of at least $50,000 to cover damage they cause to other people's property |
| Ontario | Private insurers regulated by FSRA | A competitive market with big differences between companies. The accident benefits rules changed on 1 July 2026 |
| Alberta | You buy through brokers from insurance companies | The new Care-First system starts on 1 January 2027 |
In a public system, basic insurance comes from a single provider, so your comparison is limited to the add-ons. In a private system, comparing is where all the savings are. Either way, your documented experience remains the biggest factor in your price.
Get your experience from home recognized
British Columbia says so explicitly: ICBC credits up to 15 years of driving experience if you provide an acceptable driving record showing the original date you were first licensed, and your discount grows with each crash-free year. However, it adjusts your premiums during your first three years of driving in the province, because of the risks that come with driving in an unfamiliar area.
Manitoba advises newcomers to bring their driving and insurance records to qualify for discounts.
In Ontario and Alberta we found no published official rule requiring private insurers to credit your foreign experience. Each company decides for itself, which is why similar newcomers get very different quotes. Ask every insurer or broker directly: "Do you credit driving experience from outside Canada, and which documents do you accept?"
What to prepare before you ask for a quote:
- A driving record or an official letter from the authority that issued your licence, showing the date of your first licence and, if possible, your record of offences.
- A letter from your previous insurer stating how long you were insured with them and any claims. Saying so verbally is not enough.
- A certified translation of anything not in English or French. You can find translators in our translators directory.
Remember that your licence status itself affects the price. If you are still at the G2 stage in Ontario, or on a graduated licence elsewhere, start with the driver's licence tool to see where you stand.
Discounts to ask for by name in Ontario
FSRA publishes a list of discounts worth asking about every year. The most relevant for newcomers:
- Winter tires: all insurers must offer a discount if you use winter tires. Ask your insurer about the eligibility conditions. For why you need them in the first place, read our winter driving guide.
- Graduated licensing discount: drivers moving through the licence stages should get a 10% reduction on all coverage for one year when they reach G2, if they have no chargeable convictions or at-fault collisions. Likewise, a 10% reduction for one year when they get their full G licence, if their record stayed clean during G2. This discount matters to many newcomers going through these stages.
- Driver education course: most companies offer a discount to new drivers who complete a recognized program. Compare schools in our driving schools directory.
- Several vehicles with the same company: usually a discount of 5% to 15%.
- Car and home insurance together: 5% to 15% with some companies.
- Renewal: 5% to 20% if you stay with the company for several years without an at-fault collision.
- Group insurance: through your employer, a union or a professional association, if they offer it.
- Low mileage and an anti-theft device: FSRA says some companies lower the price for these.
Other decisions that lower your premium
- Raise your deductible if your budget can cover it in a collision. You pay more out of pocket when there is damage, and your premium goes down.
- Do not pay for coverage you do not need. FSRA gives an example: collision or comprehensive coverage on a car worth less than $2,000 may not be worth it, because any claim would not be much more than the deductible.
- Choose your car with insurance in mind. Models more likely to be stolen cost more to insure. Get a quote before you buy, not after.
- Always pay on time. Having your policy cancelled for non-payment more than twice can make you "high risk" and push your price up sharply. And if your policy is cancelled for non-payment more than once in three years, insurers are not required to let you pay monthly. Set up automatic payments from an account that always has enough money in it, and see our newcomer banking guide.
- Do not switch insurers mid-year. Wait for your renewal date so you do not pay cancellation fees.
Ontario after 1 July 2026: a new choice with a cost
The Government of Ontario announced two changes that took effect on 1 July 2026:
- You can now choose whether or not to buy some accident benefits, while basic coverage for medical, rehabilitation and attendant care remains mandatory.
- Auto insurance now has to pay for eligible medical and rehabilitation expenses from a car accident before your supplementary health insurance, such as an employer plan.
The temptation is to drop the optional benefits to lower your premium. Before you do, ask yourself: who would replace your income if an accident kept you off work for months, before you have built up any savings in Canada? This is a decision to make after going through the options with your broker, not on price alone.
How to compare quotes without being fooled by the lowest number
- Fix the coverage first: third-party liability limit, deductible, collision, comprehensive and optional accident benefits. Ask for every quote on exactly the same basis.
- Give every company the same documents and ask in writing whether they credit your foreign experience.
- Compare across more than one channel: a broker who shows you several companies, and a company that sells directly. FSRA warns not to assume companies charge the same price for the same coverage. You can find brokers in our insurance directory.
- Compare again at every renewal. The company that was cheapest in your first year may not be once you have a Canadian record.
- Put the premium in your budget before you buy the car. Use the budget tool and add insurance as a fixed monthly item.
If your insurer treats you unfairly in Ontario
The official process published by FSRA goes in this order:
- File your complaint with your insurer's Complaint Officer.
- Ask them for a final position letter.
- If the company is a member of the General Insurance OmbudService (GIO), it may refer you there. GIO is an independent, free dispute resolution service.
- If you are not referred to GIO and you believe the company or agent broke insurance law, file a complaint with FSRA through its complaint form, with supporting documents.
Keep every written exchange from the start. FSRA only considers complaints backed by documents.
What this guide does not do
We do not give estimated prices, because premiums vary by driver, car, neighbourhood and company, and any general figure would mislead you. We do not recommend any particular company, and we do not earn commission on insurance policies. This guide is general information from official sources, not financial or legal advice.
Frequently asked questions
Will my driving experience from my home country count?
In British Columbia, yes, up to a maximum of 15 years, if you provide an acceptable driving record showing the date of your first licence. In Manitoba, MPI recommends bringing your records to qualify for discounts. In Ontario and Alberta it is up to each company, so ask in writing.
Is the winter tire discount mandatory in Ontario?
According to FSRA, all insurers in Ontario must offer a discount to drivers who use winter tires. But the amount and conditions vary from one company to another.
In Quebec, is SAAQ insurance enough?
No. The SAAQ compensates bodily injury, but the law requires every vehicle owner to carry civil liability insurance from a private insurer of at least $50,000 to cover damage they cause to other people's property.
Can I lower my deductible in Saskatchewan?
Yes. SGI says you can buy an additional policy (auto extension) that lowers your deductible, either from SGI CANADA or from other companies.
What changed in Ontario on 1 July 2026?
Coverage for medical, rehabilitation and attendant care remained mandatory, and some other accident benefits became optional. Auto insurance now also pays eligible medical expenses before supplementary health insurance.