Yes, your standard Canadian auto insurance policy typically covers you when driving across provincial borders. Whether you are traveling for a road trip or just passing through, your home province’s coverage remains valid throughout Canada and the United States.
Key Coverage Details
- Third-Party Liability: If you are at fault in an accident in another province, your liability coverage will protect you up to your policy limit.
- The “Power of Attorney and Undertaking” (PAU): Most Canadian insurers have signed this agreement, which ensures that if you are in an accident in another province, your insurer will honor the higher of your own policy’s limits or the minimum liability limits required by the province where the accident occurred.
- Accident Benefits: If you are injured, you are generally covered by the accident benefits of your home province’s policy (e.g., Ontario’s Statutory Accident Benefits or BC’s Enhanced Care), regardless of where the accident happens in Canada.
- Optional Coverage: Collision and Comprehensive coverages (for theft, fire, or damage to your own vehicle) also follow you across borders.
Important Limitations
- Duration of Stay: If you are moving permanently or staying for an extended period (usually more than 30–90 days, depending on the province), you must notify your insurer and eventually register your vehicle in the new province.
- Business Use: If your cross-border travel is for business purposes, your standard personal policy may not provide full coverage.
- No-Fault vs. Tort: Different provinces have different systems. For example, if you are from a “no-fault” province like Quebec and have an accident in a “tort” province like Alberta, the way your claim is handled may vary based on inter-provincial agreements.
- Pro Tip: While your policy covers you, it is highly recommended to carry at least $1 million to $2 million in Third-Party Liability, as legal and medical costs in other jurisdictions (especially the U.S.) can quickly exceed the $200,000 provincial minimums.
Source: Rates.ca – Does your car insurance cover travel out of provinc