In Canada, it is possible to buy a car without insurance; however, you cannot register and legally operate the vehicle on public roads without it. The requirements for auto insurance and the process can vary by province or territory, but here’s a general overview:

1. Purchasing the Car: When you purchase a car, either from a dealership or a private seller, you can do so without having insurance in place at the moment of purchase.
2. Registering and Plating: Before you can legally drive the car on public roads, you need to register the vehicle and obtain license plates. To do this, proof of valid insurance is typically required.
3. Insurance Requirements: Every province and territory in Canada requires drivers to have a minimum amount of third-party liability insurance, which covers injuries to others or damage to their property. Some provinces might also require additional types of coverage, such as accident benefits or uninsured motorist protection.
4. Provincial Insurance Programs: Some provinces, like British Columbia, Saskatchewan, and Manitoba, have public auto insurance programs, while others rely on private insurers. Regardless, you need to have insurance in place to legally operate your vehicle.
5. Driving Without Insurance: Driving without insurance is a serious offense in Canada. If you are caught, you could face hefty fines, the suspension of your driver’s license, and your vehicle could be impounded. The consequences of being involved in an accident without insurance can be even more severe, potentially leading to substantial out-of-pocket expenses and legal ramifications.

If you’re considering buying a car in Canada, it’s essential to arrange for insurance before driving the vehicle on public roads.

Province-by-province breakdown

Here’s a province-by-province breakdown on buying a car and the requirements for insurance in Canada:

1. Alberta:
   • You can buy a car without insurance.
   • To register and drive it, you need at least $200,000 in third-party liability coverage.
   • Insurance is provided by private insurers.
2. British Columbia (BC):
   • You can buy a car without insurance.
   • To register and drive it, you need insurance through the Insurance Corporation of British Columbia (ICBC) with a minimum of $200,000 in third-party liability.
3. Manitoba:
   • You can buy a car without insurance.
   • Registration and driving require insurance through Manitoba Public Insurance (MPI), with a basic plan including third-party liability.
4. New Brunswick:
   • You can buy a car without insurance.
   • To register and drive, you need a minimum of $200,000 in third-party liability insurance from private insurers.
5. Newfoundland and Labrador:
   • Buying a car doesn’t require insurance.
   • Before driving, you must have at least $200,000 in third-party liability insurance, available through private insurers.
6. Nova Scotia:
   • You can purchase a car without insurance.
   • Driving requires at least $500,000 in third-party liability insurance from private insurers.
7. Ontario:
   • You can buy a car without insurance.
   • To register and drive, you need proof of insurance with a minimum of $200,000 in third-party liability, which is provided by private insurers.
8. Prince Edward Island (PEI):
   • You can buy a car without insurance.
   • Driving requires at least $200,000 in third-party liability coverage, available from private insurers.
9. Quebec:
   • You can purchase a car without insurance.
   • To register and drive, you need a minimum of $50,000 in third-party liability insurance. The province has a hybrid system where injury coverage is public (through the Société de l’assurance automobile du Québec) and property damage coverage is private.
10. Saskatchewan:

• You can buy a car without insurance.
• To register and drive, you need insurance through Saskatchewan Government Insurance (SGI). The basic plate insurance includes third-party liability.

11. Northwest Territories, Nunavut, and Yukon:

• In all three territories, you can buy a car without insurance.
• Before driving, you need at least $200,000 in third-party liability insurance. Insurance is available through private insurers.

Reasons You May Need to Buy a Car Without Insurance

There are several reasons why someone might purchase a car without immediately insuring it in Canada. Here are some common scenarios:

1. Collector or Antique Cars: Some individuals buy cars with the intention of never driving them on public roads. They may be collectors who are looking for rare or antique vehicles to restore or keep as part of a collection.
2. Project Cars: Enthusiasts may buy cars in need of significant repairs or restoration. These cars might not be roadworthy immediately, so they won’t be insured until the restoration process is complete.
3. Immediate Resale: Someone might buy a vehicle with the intent of quickly selling it to someone else. They might not need to register or insure the car if they plan on flipping it quickly.
4. Storage or Future Use: An individual might buy a car with the plan of using it in the future. They might not need the vehicle immediately and intend to store it until needed, at which point they will get insurance.
5. Transfer or Gifting: Someone might buy a car to gift to a family member or friend, in which case the recipient would be responsible for insuring the vehicle.
6. Auction Purchases: Cars purchased at auctions, especially those bought by dealers or resellers, might not be insured immediately after purchase.
7. Financial Constraints: Some might buy a car when they find a good deal but might need additional time to allocate funds for insurance.
8. Waiting for Import/Export: If a car is bought in Canada but intended for export, or if it’s waiting to be imported to another province or territory, it might not be immediately insured.
9. Rural Use: In some very remote areas, a vehicle might be purchased strictly for use on private land and never intended for public road use.
10. Educational or Training Purposes: Cars might be purchased by institutions or schools for mechanic training, driver’s education, or similar uses where they won’t be driven on public roads.

While you can buy a car without insurance, it’s illegal to drive it on public roads without the required minimum insurance coverage in any Canadian province or territory. If you’re considering storing a car without insurance, it’s also wise to consider some form of comprehensive coverage to protect against theft, fire, or other potential damages.

Buying Car Without Insurance in Canada FAQs

1. Can I buy a car in Canada without insurance?
   • Answer: Yes, you can purchase a car without insurance in Canada. However, to register and drive the car on public roads, you will need the appropriate insurance based on the requirements of your province or territory.
2. Is it illegal to drive without insurance in Canada?
   • Answer: Yes, driving without the required minimum insurance is illegal in all provinces and territories in Canada. Consequences for doing so can include hefty fines, vehicle impoundment, and license suspension.
3. Do all provinces have the same insurance requirements?
   • Answer: No, insurance requirements vary by province. Some provinces have public insurance systems, while others use private insurers. The minimum liability coverage can also differ between provinces.
4. Can I register a car without insurance?
   • Answer: Generally, no. Most provinces and territories require proof of insurance to register a vehicle and obtain license plates.
5. I’m planning to store my car and not drive it. Do I still need insurance?
   • Answer: If you’re not driving the car on public roads, you might not need liability insurance. However, it’s a good idea to have comprehensive insurance to cover potential damages like theft, fire, or natural disasters while in storage.
6. Can I test drive a car without insurance?
   • Answer: Dealerships typically have insurance that covers test drives. If you’re test driving a car from a private seller, you should ensure you’re covered by your own insurance or make arrangements before the test drive.
7. What happens if I’m caught driving without insurance?
   • Answer: Consequences vary by province, but common penalties include hefty fines, demerit points, vehicle impoundment, and possible license suspension. If you’re involved in an accident without insurance, you could also face significant out-of-pocket expenses and legal consequences.
8. Do I need insurance to buy a car from a private seller?
   • Answer: No, you don’t need insurance to purchase the car. However, to legally drive it home or on any public road, you will need the appropriate insurance.
9. I’m moving to Canada. Can I use my foreign insurance?
   • Answer: Generally, foreign auto insurance isn’t valid in Canada. You’ll need to purchase a local policy. If you’re bringing a car from another country, check with the respective provincial insurance authority for specific requirements.
10. What’s the minimum liability coverage I need?

• Answer: This varies by province. For instance, in Ontario, you need a minimum of $200,000 in third-party liability coverage, while in Quebec, it’s $50,000. Always check with your provincial or territorial insurance regulator for specifics.

11. Can I transfer my car’s ownership without insurance?

• Answer: Yes, you can transfer ownership without insurance. However, the new owner will need to obtain the required insurance to register and legally drive the car.

12. Do I need insurance for a car that’s not in use?

• Answer: If a car is not being driven and is stored on private property, it generally doesn’t need liability insurance. However, considering comprehensive insurance to protect against potential non-driving related damages is advisable.

13. How long can I drive a newly purchased car without insurance?

• Answer: Technically, you can’t legally drive a car on public roads without insurance, even if you just purchased it. Ensure you have insurance coverage in place before driving.

14. Is insurance more expensive for new drivers in Canada?

• Answer: Yes, typically, new drivers or drivers with no previous Canadian driving history might face higher insurance premiums due to the perceived higher risk.

15. If I buy a car in the middle of the month, when should I get insurance?

• Answer: You should obtain insurance before driving the car, regardless of when you buy it. Many insurers offer pro-rated policies if you’re concerned about starting a policy in the middle of a billing cycle.

16. Can a dealership help with insurance?

• Answer: Some dealerships have partnerships with insurance companies and can assist in setting up a new policy or providing a quote. However, it’s always a good idea to shop around to ensure you’re getting the best deal.

17. Do all cars have the same insurance rate?

• Answer: No, insurance rates vary based on several factors, including the make, model, age of the car, its safety features, and its susceptibility to theft.

18. What if I only need insurance for a short period?

• Answer: Some insurance companies offer short-term or temporary car insurance policies. Check with insurers in your province or territory to explore options.

19. Can I use someone else’s insurance to drive a car I bought?

• Answer: It depends on the policy. Some insurance policies cover occasional drivers, but you must ensure you have permission and that the policy covers non-primary drivers.

20. Are there penalties for a lapse in car insurance coverage?

• Answer: Yes, besides the risk of driving without insurance, having a lapse in coverage can lead to higher premiums in the future, as insurance companies may view a lapse as a sign of irresponsibility.