Are you or your family new to Canada? Maybe you're purchasing your first car in Canada as an international student, or another type of newcomer and you've never had insurance here before. Where should you start? Insurance in Ontario, especially in a busy city like Toronto and more broadly in Canada, can be confusing since it is very different from other countries. Who has the best prices? Who has the best service? Who will treat you the way you deserve to be treated? Well, whether you’re looking for the best car insurance for newcomers in Ontario or simply trying to find the cheapest car insurance for immigrants, we’ve got you covered.
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If you are a newcomer in Canada, you may not have many contacts to help you with financial services. Most people who have lived here for years have a go-to insurance person or company they trust. However, if you are new here and do not know where to start, we suggest a couple of options.
Firstly, you may want to deal with an insurance broker who speaks your native language. This can be very important in understanding what you are purchasing when you seek insurance quotes in Ontario or anywhere in Canada.
Secondly, if you cannot find someone who speaks your primary language or if you don’t mind speaking English, you can go online and compare car insurance for newcomers to Canada quotes specific to your status. Using online quoter, you can explore affordable options tailored to your driving history and personal needs. Begin Insurance offers both styles of service, online and offline, with a trusted advisor to guide you.
Newcomers to Canada can often find it challenging to find certain services. Whether you're here on a study permit, work permit, business visa, or even as a permanent resident, finding finding suitable insurance may feel daunting at first. In Ontario, the “Take All Comers” regulation provides some peace of mind. Every insurance company must offer coverage to anyone applying for auto insurance, regardless of their background or driving history. This means you won’t be denied coverage, even if you’re new to the system.
For example, if you are dealing with an insurance broker, which we suggest, they may have several insurance companies they deal with. A broker must offer you the lowest price amongst the companies they deal with, and the more companies the better. It is regulated, by law, that we offer you the lowest price and best coverage. Begin Insurance works with 19 auto insurance companies, the most in Ontario. This is especially useful for newcomers in Toronto, where insurance rates can vary significantly by provider.You can learn more about this regulation on the FSRA website.
If you’ve recently arrived in Canada, your foreign driver’s licence may be valid temporarily, depending on your province. In Ontario, for example, newcomers can use their foreign licence for up to 60 days. After that, you’ll need to switch to an Ontario driver’s licence.
You may be eligible to exchange your licence from certain countries without having to redo the driving test. These include the U.S., U.K., Australia, France, and several others. If your country isn’t on the list, you’ll need to go through the full licensing process.
If you plan to drive in Ontario, you’ll need to switch to an Ontario driver’s licence within 60 days of arriving in the province. The process depends on the country you're coming from and how much driving experience you have.
Step 1: Check Licence Exchange Eligibility
As confirmed by confirmed via MTO and ServiceOntario resources, Ontario has agreements with certain countries that allow for a direct licence exchange. If you're from one of these countries, you may not need to take any driving tests:
If your country is on the list and your licence is valid and recent (usually issued within the last 12 months), you may be eligible for a full G licence.
Step 2: Collect Required Documents
Bring these items when applying:
Step 3: Take a Vision and Knowledge Test (if required)
If you're not eligible for direct exchange, you’ll start with the G1 written test, which covers road signs and traffic rules in Ontario. You’ll also do a simple vision test at the testing center.
Step 4: Get Credit for Previous Driving Experience
If you can show at least 2 years of experience, you may be allowed to skip one or both road tests. This is where your Letter of Experience is essential. Without it, you may need to start as a brand-new driver.
Step 5: Book and Complete Road Tests (if required)
Depending on your experience:
Some drivers may only need to take the G test if experience is approved.
Step 6: Receive Your Ontario Licence
Once you’ve passed all required steps, you’ll be issued an Ontario driver’s licence. This will make your car insurance for newcomers to Canada more affordable over time.
BONUS TIP: Practice Ahead of Time
Even experienced drivers may struggle with Ontario’s rules or driving style. Consider a practice lesson with a local driving school to prepare for road tests and avoid unnecessary failures.
Have you been driving for many years in your home country? Certain insurance companies may consider your previous driving experience. If you've driven in countries with similar conditions to Canada (right-side driving), you may receive credit for your good driving record. However, you will need to prove that you had no claims or accidents by obtaining a “Letter of Experience” from your previous insurance company abroad in order to get the credit.
While not every provider recognizes international experience, several insurance companies may offer cheaper car insurance for immigrants with a clean track record.
Here are several strategies to lower your auto insurance as a newcomer:
These tips can help you find the cheapest car insurance for immigrants and maximize your savings as you get settled in Canada.
As an international student or newcomer to Canada, the insurance companies here will not give you credit for prior driving experience in your country of origin, and you will start as a new driver here. In this case, consider taking Driver Training courses here. This will give you several years of credit and help immigrants like you secure cheapest car insurance by saving you hundreds, if not thousands, of dollars over time on your premiums.
But wait, what if you still feel you are not getting credit for being the good driver that you are? One of your final options to save money is Usage Based Insurance, also called Telematics. Using this service will install a monitor in your vehicle or more commonly now on your cell phone app. The telematics device or app will track your driving usage. How often you drive, where you drive, how fast, and how hard you brake and swerve are all monitored.
If you don’t drive very often, don’t speed, and are generally a safe driver you will get discounts on your car insurance. It is usually a 10% discount automatically to sign up for the program with up to another 10% - 15% further discounts for safe driving. Some people don’t like the fact that the insurance company will monitor your driving but let’s be honest, we have so many apps on our phones that track what we are doing but few, if any, that can save us hundreds of dollars.
Only discounts apply, no surcharges for bad driving. Why not give it a try and prove you are a great driver?
So you are no longer new to Canada. You have been here a few years and settled down, have a good career, maybe you are focusing on family or studies. Now that you’ve conquered your auto insurance needs maybe you need renters insurance. Maybe you are buying a condo.
Maybe you’re moving into a house and need proper home insurance. As you grow older and accumulate assets as well as responsibilities your needs will change. You may need to consider Life Insurance. Maybe you purchased an investment property or a cottage with some toys like a boat or motorcycle.
As your needs grow it is important to work with a broker. Only a broker can offer the broad range of products and services you need as your life changes. It is important to build a relationship with a broker you can trust for the long term.
Begin Insurance specializes in helping newcomers to Canada, especially in the Greater Toronto Area (GTA), find the right coverage at competitive prices. Whether you're seeking high-risk insurance or just the best car insurance for newcomers in Ontario, Begin Insurance is here for you. Feel free to give us a call or click below to obtain online insurance quotes.
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1. How do I get the cheapest car insurance for immigrants in Ontario?
To get the cheapest rates:
Brokers like Begin Insurance can help you find the best car insurance for newcomers in Ontario.
2. Do I need car insurance before buying a car in Canada?
Yes. You must have valid car insurance in place before you can register or drive a newly purchased car. If you’re buying from a dealership, they may require proof of insurance before handing over the keys.
3. Can international students get car insurance in Canada?
Yes. International students can get car insurance even if they only hold a G1 or G2 licence. However, rates may be higher, so it’s essential to explore options like usage-based insurance, driver training, and working with a broker.
4. Will my international driving experience lower my insurance premiums?
It might. Some insurers offer discounts if you have verifiable, claim-free driving experience from another country (usually confirmed with a Letter of Experience). Not all companies accept this, so it’s best to work with a broker who knows which ones do.
5. What’s the difference between G1, G2, and G licences in Ontario?
You can skip some steps if you have previous experience and supporting documentation.
6. Can I get car insurance in Canada without a Canadian driver’s licence?
It’s very difficult. Most insurers require a valid Canadian licence (at least a G1 or G2) to issue a policy. If you’re new, start the licensing process as soon as possible and speak with a broker about interim solutions.
7. How long does it take to get a full G licence as a newcomer?
If you provide documentation showing 2+ years of driving experience, you may be eligible to take the G road test right away. Otherwise, it typically takes 12 months to move from a G1 to a G2 license (or 8 months if you complete an approved driving course). You'll then need to wait another 12 months to take your G road test, for a total of 24 months from G1 to full G.
Take a look at our other blogs for more insights, like ”What to Do After a Car Accident” or “Switching Car Insurance Companies in Ontario”, for more details on insurance in Ontario.