Is my Canadian car insurance valid in the U.S.? [2024 Update]

If you’re planning on going down south for weeks or a more extended period of time, it’s important that you plan ahead to ensure your holiday goes as smoothly as possible.

Most people assume that their Canadian auto insurance is only valid throughout the country of origin.

While the coverage won’t protect you when you rent a car overseas, your car insurance extends if you’re crossing the United States border. There could be limitations as to which types of coverage and what limits will extend. Read this guide to driving in the US with Canadian insurance and learn everything that you need to know.

To learn more about Canadian car insurance coverage in the USA (and vice versa), start comparing car insurance rates now by using our FREE tool. Enter your ZIP code above to get started.

Canadian Auto Insurance in the USA

Does Canadian Car cover you in the USA? One of the main reasons that Canadian insurance will be valid in the US is because the two countries operate under very similar legal systems.

While there are some differences in terms of car insurance laws and how claims are settled, minimum liability requirements are extremely similar in nature.

There are a lot of uninsured drivers in the United States. About one in eight drivers on the road are driving uninsured, according to the Insurance Information Institute.

You can see that some states are worse than others in the table below.

Uninsured Drivers by U.S. State

The possibility of being hit by an uninsured driver is a very real one, so make sure you have coverage that will kick in if an uninsured driver hits you.

In Canada, all provinces set their own compulsory car insurance laws much like states do in the US

While the actual minimum requirements in Canada vary from province to province, liability insurance that pays for bodily injury and property damage claims is required across the board.

This is much like the liability requirements in the United States. These require a minimum amount of coverage that is typically lower than the minimums in Canadian territories.

If you get pulled over in the US, don’t panic. Just behave as you normally would.

Most of the time, you won’t have any problems, but there have been instances of Canadian drivers getting arrested for driving with their Canadian license. For example, the BBC reports that a Canadian woman was arrested in 2018 while driving in Georgia because of her Canadian driver’s license.

She was refunded all fines, but it’s not unheard of to be arrested erroneously while driving with your Canadian license. This shows there is still a level of confusion in the US about Canadian driver’s license reciprocity.

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Canadian Car Insurance in the USA: Liability Coverage

It’s extremely important that you contact your agent to verify that your standard personal coverage will protect you once you cross the 49th parallel.

In most cases, when you leave the country to drive the open road in the US in your own car, your third-party liability limits will be valid.

So, if you live in Alberta, the amount of coverage that you’ll have for third-party injury claims and third-party damage claims.

Some provinces have their own unique laws regarding how insurance will pay when you’re out of the province.

You’ll need to check to see if there’s an out-of-province rider that you’ll need to add for a nominal fee before you leave the country.

Increasing Car Insurance Coverage Limits

One thing that you can do to ensure that you have enough liability coverage in the US to cover the increased exposure to loss is to increase your liability limits.

While it’s not required, having a blanket $1 million of protection can help give you peace of mind while you operate unfamiliar roads.

It can also help protect your assets from being targeted if you have a large loss and must defend yourself in civil court.

Will damage to your Canadian vehicle be covered in the United States?

If you’re worried about getting into an accident and having to pay for US repair bills on your own, you should check to see if comprehensive and collision will extend over the border.

Most of the respected insurers will extend your full coverage when you’re driving in the United States.

This means that whatever coverage you carry and limits you’ve selected will be valid in the US. If you don’t have collision coverage to pay for damage sustained in an accident, it might be time to reassess your needs.

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Does your Canadian car insurance cover you in a rental?

If you’re renting a car, wait before you elect to take the expensive over-the-counter insurance. A Canadian renting a car in the USA needs insurance but probably not special rental coverage. 

It can cost you between $20 and $40 per day to buy liability and damage waivers on a US rental.

Luckily, most companies will extend coverage to a temporary replacement car.

While you’ll need to verify how your coverage works, here is what will typically be valid:

• Bodily injury and property damage liability
• Comprehensive (subject to deductible)
• Collision (subject to deductible)
• Personal injury protection

Before you jump to buy auto insurance in the US you should check to see how your coverage applies.

Ask how long you’ll be covered and when you’ll need to activate domestic insurance.

If you plan on moving to the US, start quoting rates today. You can use an online comparison tool and then find the most affordable coverage in a short time frame so that you have coverage as soon as you move.

Things to Keep in Mind as a Canadian Driving in the USA

Canadian car insurance for driving in the USA is essential, but you should also be aware of the laws that govern where you’ll be driving. 

Each state has its own form of the “keep right” law, which determines how you should handle driving in the left lane. Some states only allow it while passing, while others don’t really care as much. You can search below to see the laws in the states you may be driving in.

Keep Right Laws by State

Read more: Maryland Car Insurance Guide (Cost + Coverage)

It’s worth noting that car insurance for driving in the USA is generally going to cover you, but it stops when you hit the Mexican border. So, if you’re planning on a multi-country trip, check with your insurer first to see what your options are.

Does your car insurance cover you in another country?

Americans and Canadians are typically covered in both countries when they’re driving, regardless of which of the two countries they bought that policy in. However, other countries will typically not be covered. If you’re planning to travel anywhere else, it’s smart to contact your insurer ahead of time and find out what other coverage you may need.

Whether you need car insurance as a Canadian student in the US or car insurance for Canadian snowbirds flying south to Florida for the winter, your insurance policy will probably cover you in the US. But, you should always check with your insurer first before making a trip outside of your country. (For more information, read our “Car Insurance Coverage for Snowbirds“).

If you’re looking to go to a country where the primary language isn’t English, you may want to get extra car insurance for tourists. The Federal Trade Commission notes that you’ll need an International Driving Permit (IDP), which is really only there to help interpret your driver’s license to officials in the other country.

You can also get car insurance to cover you while abroad, whether through a rental company or through some large companies. Some of these have a big presence in the US also, like Geico.

What about US car insurance in Canada?

If you’re an American driving into Canada, your policy should cover you. Both countries have very similar car insurance laws. It’s always best to check with your car insurance company before you cross the border to make sure you have the right level of coverage. (For more information, read our “Do I need car insurance to cross the border?“).

Do you need proof of insurance to drive in Canada? You’ll need to provide something showing how much coverage you have on your car, just as in the US.

How does Canadian car insurance work? One of the main reasons Canadian and American car insurance work in both countries is because there are a lot of similarities in requirements.

Before making any final decisions on your insurance company, it is important to learn as much as you can about your local insurance providers, and the coverages they offer. Call your local insurance agent to clear up any questions that you might have. Questions to consider asking include, “What is the best coverage plan for me/my family/my situation?” “What are the minimum coverage requirements in my state and what form of coverage do you recommend?” “Do you guys offer any bundle discounts if I take out both my auto insurance and home insurance with you?” and “What is the average rate of insurance quotes you guys offer?”

Before making any big insurance decisions, use our free tool to compare insurance quotes near you. It’s simple, just plug in your ZIP code and we’ll do the rest!

To learn more about how car insurance works in both countries, start comparing car insurance rates now by entering your ZIP code in our FREE tool below.

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