Does U.S. Car Insurance Cover You in Canada?

Most major U.S. auto insurance companies cover you while driving in Canada. But it’s important to check your coverage for potential limits.

Jessica Martel
Written byJessica Martel
Jessica Martel
Jessica Martel

Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.

Jessica has been a contributor at Insurify since July 2023.

Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

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Thanks to reciprocal car insurance agreements between the United States and Canada, your U.S. car insurance will likely cover you during a road trip to Canada. But before you go, it’s still a good idea to check with your insurer to confirm you’re covered.[1]

Here’s what you should know about U.S. car insurance coverage in Canada.

Quick Facts
  • Canadian law requires all drivers to have car insurance, but regulations vary widely by province and territory.

  • You’ll likely need Canadian auto insurance if you’re planning an extended trip or a move to Canada.

  • Canadian insurance is available from government insurers and private insurers, but purchasing restrictions differ across the provinces and territories.

Car insurance requirements in Canada

In Canada, it’s illegal to drive without car insurance. Drivers must have minimum auto insurance, known as “mandatory coverage.” Where and how you purchase car insurance can vary between Canadian provinces and territories.

Insurance in the U.S. is similar to Canada in that nearly every province and territory has minimum insurance requirements. But some provinces require you to purchase insurance from the government, while others allow you to purchase from private companies or some combination of the two.[2]

In Canada, the penalties for driving without mandatory insurance also differ between provinces and territories.

For example, in Ontario, the fine for driving without insurance is $5,000 — plus a tax of approximately 20% — for a first offense, for a total of about $6,250. The amount doubles for each subsequent conviction.[3]

How U.S. car insurance works in Canada

Your U.S. auto policy won’t typically cover you internationally, but it does offer some coverage in Canada. As a foreign driver in another country, you’ll usually require an international driving permit (IDP). But the rules are a bit different in Canada, where U.S. drivers typically don’t require a separate travel insurance policy.

If you have car insurance through a large U.S. insurer, it’ll typically cover you for a short-term trip to the Great White North. But it’s a good idea to double-check with your insurance company before you head out on a road trip.

Even if your insurance coverage is valid in Canada, you’ll need to make sure that you meet the local provincial or territorial mandatory minimums. Many insurance policies include “out-of-state” coverage, which provides the minimum amounts and type of insurance required by the province or territory. When traveling, carry a copy of your insurance and registration in case law enforcement asks you to provide proof.

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Parts of a U.S. car insurance policy

A U.S. car insurance policy can have different parts, depending on the type of car insurance you have. While some insurance coverage is required, like liability, others are optional, such as gap insurance. Full-coverage insurance often includes several coverage options in addition to liability, but liability-only policies only have the bare minimum.

  • illustration card https://a.storyblok.com/f/162273/150x150/0ee044afbd/car-and-driving-96x96-orange_039-car-accident.svg

    Liability coverage

    Every U.S. state except New Hampshire requires liability insurance. It covers damages related to bodily injury, death, and property damage to the other driver if you cause a car accident.

  • illustration card https://a.storyblok.com/f/162273/x/7b43b14514/damage-from-aircraft.svg

    Collision coverage

    Collision insurance is an optional form of insurance. It protects your car and property if you’re in an accident, regardless of fault.

  • illustration card https://a.storyblok.com/f/162273/x/665da91bf7/comprehensive-coverage.svg

    Comprehensive coverage

    Another optional insurance, comprehensive insurance protects your vehicle against non-collision events, such as a fire, hailstorm, or theft.

  • illustration card https://a.storyblok.com/f/162273/x/2d92436d68/protection-for-your-car.svg

    Optional coverages

    Other examples of additional coverage include roadside assistance insurance, rental reimbursement, gap insurance, and accident forgiveness coverage.

North American insurance agreements

The U.S. and Canada share reciprocal laws for auto insurance. As a result, your U.S. insurance policy will typically cover you when you drive in Canada. Both countries also have commercial reciprocity laws, which outline a similar agreement for commercial drivers.[4]

Before hitting the road, it’s always a good idea to check in with your insurance company to ensure you have the coverage you need before crossing an international border.

Companies that provide car insurance in Canada

Many car insurance companies provide car insurance coverage for U.S. drivers crossing the border into Canada. Here are five car insurers that provide coverage in Canada to consider.

State Farm

State Farm logo
User Reviews
4.2
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.3 /10
4.2
Best choiceBased on 9,419 verified guest reviews and ratings
State Farm's score
Industry average
Coverage options4.23.2
Customer service4.13.6
Discounts42.9
Policy transparency43.1
Value42.9
How drivers feel about State Farm

Drivers appreciate the helpful local agents and initial service but dislike the high prices and frequent rate increases.

AI-generated from the text of verified reviews collected by Insurify
Best For
Customer service
Competitive rates
Discounts for safe drivers
How drivers feel about State Farm

Drivers appreciate the helpful local agents and initial service but dislike the high prices and frequent rate increases.

AI-generated from the text of verified reviews collected by Insurify
Best For
Customer service
Competitive rates
Discounts for safe drivers
Reviews (5,180)

Sandra

January 13, 2025

Verified Review

Need Less Expensive Insurance

Good.

Uriel

January 13, 2025

Verified Review

Poor

Too expensive.

Pano

January 13, 2025

Verified Review

Excellent but Pricey Insurance

The insurance coverage is excellent, but it has gotten too pricey!
See all State Farm reviews
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
842
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.78
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company

State Farm is the largest auto insurer in the U.S. by market share and has been in business for more than 100 years. In addition to a range of insurance coverages, it also offers banking and investment products. If you’re planning a road trip to Canada, State Farm’s optional emergency roadside assistance and travel expense coverage might come in handy.

Pros
  • Above-average rating in the J.D. Power 2024 U.S. Auto Insurance Study

  • Above-average rating in the J.D. Power 2024 U.S. Auto Claims Satisfaction Study 

  • Many available coverages

Cons
  • No live chat

  • Gap insurance not available

  • Accident forgiveness not available

USAA

USAA logo
User Reviews
4.9
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.4 /10
4.9
Best choiceBased on 1,670 verified guest reviews and ratings
USAA's score
Industry average
Coverage options4.93.2
Customer service4.63.6
Discounts4.92.9
Policy transparency4.93.1
Value4.92.9
How drivers feel about USAA

Drivers appreciate the ease of working with the carrier, competitive rates, and responsive service but dislike the price increases and lack of rideshare add-ons in some areas.

AI-generated from the text of verified reviews collected by Insurify
Best For
Members of the military community
Outstanding customer service
Competitive rates
How drivers feel about USAA

Drivers appreciate the ease of working with the carrier, competitive rates, and responsive service but dislike the price increases and lack of rideshare add-ons in some areas.

AI-generated from the text of verified reviews collected by Insurify
Best For
Members of the military community
Outstanding customer service
Competitive rates
Reviews (958)

Ken

January 13, 2025

Verified Review

Not Ready to Make Any Changes in Insurance

I am just checking other insurance rates and I am currently satisfied with USAA.

Charles

January 12, 2025

Verified Review

Severely Disappointed in Premium Insurance Company

I'm disappointed due to the constant high rate increases and minimal accident assistance, other than collecting my deductible, which they rate as A+.

Ronald

January 12, 2025

Verified Review

Good

Have you noticed that companies which advertise the most have the highest premiums?
See all USAA reviews
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
880
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.35
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company

The United Services Automobile Association (USAA) provides coverage to active military members, veterans, and their family members. If you need to file a claim while visiting Canada, USAA ranks among the top companies when it comes to customer and claims satisfaction ratings. USAA also provides 24/7 roadside assistance in Canada.

Pros
  • High ratings in the J.D. Power 2024 customer and claims satisfaction studies 

  • 24/7 roadside assistance

  • Highly rated mobile app allows for easy claims management

Cons
  • Only available to current and former military members and their families

  • No 24/7 customer service  

  • If you rent a vehicle in Canada, your USAA policy doesn’t cover you for liability and physical damage

Allstate

Allstate logo
User Reviews
4.0
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.9 /10
4.0
Best choiceBased on 5,842 verified guest reviews and ratings
Allstate's score
Industry average
Coverage options43.2
Customer service3.83.6
Discounts42.9
Policy transparency3.93.1
Value3.82.9
How drivers feel about Allstate

Drivers appreciate the initial pricing and overall service but dislike the frequent rate increases and misleading pricing tactics.

AI-generated from the text of verified reviews collected by Insurify
Best For
Accident forgiveness
Wide availability
Cheap rates
How drivers feel about Allstate

Drivers appreciate the initial pricing and overall service but dislike the frequent rate increases and misleading pricing tactics.

AI-generated from the text of verified reviews collected by Insurify
Best For
Accident forgiveness
Wide availability
Cheap rates
Reviews (3,188)

Randy

January 13, 2025

Verified Review

When I got insurance for my truck, which is almost 20 years old, the cost was too high. I was charged $500 for six months, which I find ridiculous. I was never informed that I had to sign anything to decline uninsured motorist coverage, and now I'm being charged for something I didn't want from the start. I'm considering cancelling my insurance unless this charge is reversed. I believe I should have been informed about this at the start of my policy, rather than being told later that I owe almost $200 for something I didn't want. I'm disappointed with Allstate Insurance and I wouldn't recommend them to others. I feel like I've been ripped off.

When I got insurance for my truck, which is almost 20 years old, the cost was too high. I was charged $500 for six months, which I find ridiculous. I was never informed that I had to sign anything to decline uninsured motorist coverage, and now I'm being charged for something I didn't want from the start. I'm considering cancelling my insurance unless this charge is reversed. I believe I should have been informed about this at the start of my policy, rather than being told later that I owe almost $200 for something I didn't want. I'm disappointed with Allstate Insurance and I wouldn't recommend them to others. I feel like I've been ripped off.

Kimberly

January 13, 2025

Verified Review

Go Elsewhere!

Go somewhere else. Allstate's prices are outrageously high.

Natasha

January 13, 2025

Verified Review

Excellent

Good. Matt has always been very helpful with any questions I've had.
See all Allstate reviews
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
833
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.94
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A-
Why we picked this company

Allstate offers a range of insurance products, including auto, property, life, business, and identity coverage. You can choose from a wide selection of coverage options, like roadside assistance and rental reimbursement coverage, which may come in handy if you’re traveling to Canada.

Pros
  • 24/7 claims support

  • Roadside assistance coverage available in Canada

  • Quotes available online

Cons
  • Below-average rating in the J.D. Power 2024 U.S. Auto Claims Satisfaction Study   

  • Availability of insurance features and discounts vary between states

  • Below-average rating in the J.D. Power 2024 U.S. Auto Insurance Study

Auto-Owners

Auto-Owners logo
User Reviews
4.0
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.5 /10
4.0
Best choiceBased on 153 verified guest reviews and ratings
Auto-Owners's score
Industry average
Coverage options3.93.2
Customer service3.73.6
Discounts3.52.9
Policy transparency3.83.1
Value3.52.9
How drivers feel about Auto-Owners

Drivers appreciate the friendly customer service, competitive initial rates, and professional agents but dislike the frequent price increases and complicated claims process.

AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Senior drivers
Ample discounts
How drivers feel about Auto-Owners

Drivers appreciate the friendly customer service, competitive initial rates, and professional agents but dislike the frequent price increases and complicated claims process.

AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Senior drivers
Ample discounts
Reviews (94)

Tammy

January 13, 2025

Verified Review

Affordable Insurance in Michigan

The insurance is affordable.

Allen

January 12, 2025

Verified Review

Excellent

Absolutely no problems.

Michael

January 6, 2025

Verified Review

Pleased

I have had a positive experience with Auto-Owners company and personnel.
See all Auto-Owners reviews
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
837
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.5
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company

Auto-Owners is available to drivers in 26 U.S. states and extends coverage when driving in Canada. The company’s roadside assistance, Road Trouble Service, is available in Canada, which could come in handy if you lock your keys in your car or run out of gas.

Pros
  • 24/7 access to Road Trouble Service

  • Many available discounts

  • Accident forgiveness insurance available

Cons
  • Quotes not available online

  • Available in only 26 states

  • Below-average rating in the J.D. Power 2024 U.S. Auto Claims Satisfaction Study

Commonwealth Insurance

Commonwealth Casualty logo
User Reviews
3.6
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
5.5 /10
3.6
A solid optionBased on 29 verified guest reviews and ratings
Commonwealth Casualty's score
Industry average
Coverage options3.33.2
Customer service3.13.6
Discounts2.82.9
Policy transparency3.23.1
Value2.92.9
How drivers feel about Commonwealth Casualty

Drivers appreciate the courteous service and ease of starting a policy but dislike the high payments and lack of communication.

AI-generated from the text of verified reviews collected by Insurify
Best For
Vanishing deductible
Arizona, Ohio, and Texas drivers
Bundling discounts
How drivers feel about Commonwealth Casualty

Drivers appreciate the courteous service and ease of starting a policy but dislike the high payments and lack of communication.

AI-generated from the text of verified reviews collected by Insurify
Best For
Vanishing deductible
Arizona, Ohio, and Texas drivers
Bundling discounts
Reviews (17)

Karen

September 5, 2024

Verified Review

Constant Price Increase

Your prices were fabulous, but then you started increasing them. Can you offer me a better price than what you're giving me now?

Greg

July 25, 2024

Verified Review

Decent, Well-Priced Policy

It's better than average.

Raymundo

July 15, 2024

Verified Review

Lackluster Experience

My rates have increased by $200 upon renewal with them. I have had no tickets or accidents, yet the rates went up.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
NR
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
NR
Why we picked this company

Founded in 2010, Commonwealth Insurance is a newer U.S. insurance company offering auto, homeowners, renters, and roadside assistance coverage in Arizona, Ohio, and Texas. If you’re planning a Canadian road trip, you can purchase roadside assistance as an optional form of coverage. It can help if you get a flat tire, need a tow, or lock yourself out of your car.

Pros
  • Quotes available online

  • Partners with many charities  

  • Many available coverages

Cons
  • Can’t file a claim online

  • Limited information on website 

  • Available in only three states

  • To choose the best U.S. car insurance companies for people driving in Canada, we first looked at insurers that extend their U.S. coverage to Canada. We also considered each company’s coverage options, discounts, customer and claims satisfaction ratings, and financial strength.

Is state-minimum coverage enough to drive in Canada?

U.S. state-minimum coverage is typically not enough to drive in Canada since most provinces and territories have higher coverage requirements than U.S. states. So if you only carry your state’s minimum liability insurance, you may have to raise your coverage before your trip. Coverage requirements also vary widely across Canadian provinces and territories. 

For example, drivers in British Columbia have to carry up to $200,000 in vehicle liability, $200,000 in third-party liability, and $1 million in underinsured motorist coverage and “inverse liability” coverage. But in Yukon, drivers only need $200,000 in third-party liability and accident benefits.

Important Information

Before crossing the border, it’s important to check mandatory insurance coverage requirements for each province and territory you plan to visit. Then, double-check that your U.S. insurance policy meets the requirements. Without enough coverage, you could face legal issues, penalties, or high out-of-pocket expenses after an accident.

Driving a rental car in Canada

If you plan to drive a rental car in Canada, your U.S. car insurance may provide some coverage. But before you travel, it’s important to confirm coverage details, including limitations, to make sure you meet all applicable coverage laws while driving in Canada.

Purchasing rental car insurance from the rental agency may be worth it, especially if your U.S. policy only offers liability insurance or you’re unsure about protection in Canada. With a rental car policy, you won’t typically have to pay for damage from collision, vandalism, or theft.

If you have an accident while driving in Canada

If you’re in an accident while driving in Canada, follow the same steps you would if you got into an accident in the U.S.

  • illustration card https://a.storyblok.com/f/162273/150x150/8768ca2572/police-96x96-blue_030-911-call.svg

    1. Call emergency services

    If someone is hurt, call emergency services as soon as possible. Emergency service numbers may be different in each province or territory, so keep a list of important numbers handy.

  • illustration card https://a.storyblok.com/f/162273/150x150/e6fca73928/contact-us-96x96-green_004-video-call.svg

    2. Assess the damage

    Take photos or videos of the vehicles. Document any important details of the accident, such as weather conditions, location, and time.

  • illustration card https://a.storyblok.com/f/162273/150x150/13dbb27bee/law-and-justice-96x96-orange_027-dossier.svg

    3. Get the other drivers’ information

    This includes their name, address, license plate, and insurance information.

  • illustration card https://a.storyblok.com/f/162273/150x150/41c194cfb2/law-and-justice-96x96-yellow_041-police-car.svg

    4. Contact the police

    Get in touch with the local police to file a police report. In some cases, they may come out to the scene of the accident, or you may be able to file a report afterward. Check local province and territory laws for more information.

  • illustration card https://a.storyblok.com/f/162273/x/7955361cf0/customer-support-1.svg

    5. Contact your insurance company

    Start the claims process by calling your insurance company as soon as possible. Let them know you were involved in an accident while driving in Canada.

Documents you’ll need to drive in Canada

Whether you’re on a short trip or driving from coast to coast, you’ll need the following documents to drive in Canada:

  • Proof of citizenship: To enter Canada, you’ll need a valid U.S. passport, passport card, or NEXUS card.

  • Valid driver’s license: Your U.S. driver’s license is valid while driving in Canada as long it’s not expired.[5]

  • Proof of insurance: Canada requires insurance for all drivers. Be sure to have your U.S. insurance card, plus documentation of any additional policies you have for driving in Canada.

  • Vehicle registration: Be sure your U.S. registration paperwork is up to date and in the vehicle. If you stay for longer than six months, you may also need to register your car in Canada.

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When to buy a Canadian car insurance policy

You don’t need to buy a Canadian car insurance policy if you’re just visiting the country — even if the trip is a couple of months long. But if you plan to stay longer or move to Canada, you’ll likely need a Canadian car insurance policy and to register your car as a temporary import. Insurance is mandatory in all of Canada, but coverage laws vary by province and territory. 

Where you buy coverage from may also depend on local laws. For example, British Columbia requires drivers to buy mandatory insurance from the government insurer, but drivers can purchase extra coverage from private insurers. In Quebec, you’ll need to purchase bodily liability insurance from the government insurer and property damage coverage privately.

Does U.S. car insurance work in Canada FAQs

If you still have questions about whether your U.S. car insurance policy will work in Canada, check out the following answers to some commonly asked questions.

  • How long can you drive a U.S.-registered car in Canada?

    If you’re just visiting Canada for the weekend or even taking a longer road trip, you can likely drive a U.S.-registered car without any issues. But if you’re staying in Canada for longer than three months, you’ll need to declare your vehicle as a temporary import and license your vehicle in Canada.

  • Do you need insurance to cross the Canadian border?

    Yes. You need insurance to cross the Canadian border. In Canada, it’s illegal to drive without insurance, and coverage requirements vary from the U.S.

    Before your trip, be sure you understand what type of coverage you’ll need. It’s also a good idea to contact your U.S. insurer to see if your existing coverage can protect you during your trip.

  • Will a pay-per-mile policy cover you in Canada?

    A U.S. pay-per-mile car insurance policy allows drivers to pay for coverage based on how much they drive. But it may not offer coverage in Canada. Contact your insurance company to confirm coverage.

  • Does U.S. car insurance work in Mexico?

    It’s possible. U.S. car insurance doesn’t typically cover you when driving internationally. But some U.S. car insurance may work in Mexico.

    Limitations typically apply, and you might need to also purchase temporary car insurance — especially if you’re on an extended trip or plan to rent a car. Your insurance company or the rental car agency can help you determine the best coverage for driving in Mexico.

Sources

  1. U.S. Department of State Bureau of Consular Affairs. "Driving and Road Safety Abroad."
  2. Insurance Bureau of Canada. "Mandatory auto insurance requirements."
  3. OTT Legal. "Driving without Insurance."
  4. American Association of Motor Vehicle Administrators. "Foreign Driver License Reciprocity Best Practices."
  5. USA.gov. "International driver’s license for U.S. citizens."
Jessica Martel
Jessica Martel

Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.

Jessica has been a contributor at Insurify since July 2023.

Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

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