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  • Writer's pictureAhsan Malyk

Does Canadian Car Insurance Work In the US

There are certain concerns to address when it comes to car insurance. They are regardless of whether people bring their vehicle to the United States or leave it in Canada. It is a good idea to evaluate your coverage before you depart for the season.

This is to verify that you have enough suitable coverage for your cars. This may help you avoid any unpleasant surprises.

Following a thorough study of your motor insurance contract with reference to travel to the United States as a starting point, you should next contact your insurance provider or broker to enquire about the specifics of your coverage.

This is something that a lot of people don't take the time to do. However, doing so may help protect you from losses in your finances that might be potentially catastrophic. And it could even end up saving you money.

The following is information regarding car insurance that you should know:

Notify your car's insurance provider immediately

Find out from your insurance provider if you have to give them notice before bringing your car to the US. Some insurance companies may compel you to tell them. However, others may just make a note in your file that you drive to the United States annually.

Even if your provider doesn't require you to contact them, it's a good idea to connect with your broker. This is to review your policy. They will be able to point out any coverage gaps or limitations you should be aware of. This is why it's a good idea to review your policy.

They could even be able to find methods for you to save costs on your insurance coverage.

How long will the insurance on your Canadian vehicle keep you covered in the United States?

Be sure to check with your insurance provider to see what their time limits and restrictions are. The majority of car insurance companies will insure your Canadian vehicle in the United States for up to six months.

However, some providers may provide coverage for longer or shorter periods.

If you drive your car outside of Canada for an extended period of time, your auto insurance company may require that you pay an extra premium in order to protect your investment.

Should you raise your liability coverage while you're visiting the United States?

Your vehicle insurance policy likely includes liability coverage. It protects you in the event that you cause bodily harm or the death of another person, as well as damage to the property of a third party.

Your insurance policy and the laws of the province in which you live will determine the level of liability protection.

For instance, in Ontario as of August 2019, the least amount of liability coverage you need to carry is $200,000. However, the majority of policies normally have liability coverage of between $1 million and $2 million.

Checking your liability coverage should be one of the last things you do before bringing your automobile to the United States. Because of the following two considerations, you may also want to think about raising it throughout the whole of your trip:

The United States of America is a more litigious nation than Canada. The sums of money awarded in judgments and settlements are often significantly larger in the United States than they are in Canada.

As a result, there is a greater chance that you may be sued in the United States. If that happens, you will be responsible for damages that are more than the typical coverage limits.

Your motor insurance policy's liability limits will be denominated in Canadian dollars. However, any damages for which you are found legally responsible in the United States will be paid in U.S. dollars.

Figure out your Loss of Use Coverage

In the event that you are involved in an accident, loss of use coverage will reimburse you for the money.

If your car is a Canadian model, fixing it in the United States can take longer than usual. This is because some of the components might not be easily accessible. As a result, you might need to rent a replacement vehicle for a longer amount of time.

Whether you live in the United States, you should double-check to see if your insurance policy provides enough compensation for loss of usage.

Examine the coverage limitations and restrictions that apply in the United States

While you are in the United States, the coverage limits of your motor insurance policy may reduce. Some kinds of coverage may be restricted, depending on the circumstances.

As a result, it is essential to check whether or not your vehicle insurance policy has any coverage limitations. Also, keep in mind that the monetary value of your coverage limitations will be expressed in Canadian dollars.

You may wish to look at the following different forms of coverage:

● Protection against collisions

● Advantages to one's health

● Attendant care

● Reimbursement in the event that your bags, clothes, or personal things are destroyed while they are in the car.

● Death and burial insurance advantages

Should you cancel the auto insurance policy on the vehicle while it's still in Canada?

If you plan to spend the winter leaving some or all of your cars in Canada but won't be driving them while you're away. You might want to consider suspending or reducing the amount of insurance coverage you have on those vehicles in order to save some money.

You can do this by calling your insurance company and explaining your situation.

This may be a possibility for you even if you travel back to Canada regularly and want to drive your vehicle while you're home. However, you will need to contact your insurance broker to make sure that you have appropriate coverage when you're home.

Take the phone number of your vehicle insurance provider with you.

When traveling outside of Canada, you should always have an international toll-free number for your vehicle insurance provider. In the event that you have a problem while you are away, you may be required to spend a significant amount of time speaking with a claims adjuster over the phone.

Take Away

Keep in mind that not all plans for car insurance are made equal. Take some time to go through your motor insurance policy and get familiar with the coverage. When it comes to insurance, it is always to your advantage to shop around for policies and prices so that you can make an informed decision.

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