Every year millions of Canadians travel by car to the U.S. – it’s our top travel destination by far.1 As similar as the U.S. may seem to Canadian travellers, there are things you need to plan for – like car insurance. Whether you’re going for a day trip or an extended road trip, take time to review your car insurance before you pack the car and head out. Don’t worry though, you’re not alone in this because we’re here to help you get started!
Does your car insurance cover you when entering the U.S. from Canada by car?
Proximity has its perks! Most Canadian insurance policies will cover you even after you’ve cleared the U.S. border crossing. Even so, it’s always a good idea to review your policy to confirm you have the types of car insurance coverage you need while you’re away. Look over your policy for details like:
- The number of days you can be out of the country. Is there a maximum?
- Are there restrictions (or limits) to your existing coverages because you’re driving in the U.S. and not Canada?
- Did you previously opt out of coverages that might be worth adding given your current travel plans?
Your car insurance is there for you when bad things happen, like a car accident. And that’s why it’s important to know the coverage you have (or might need to add) before you hit the open road.
Do you need to tell your car insurer when crossing the border to the U.S.?
Generally, you do not need to tell your insurance provider you’ll be crossing the border to the U.S. Canadian travel to the U.S. is so frequent and common – it would be cumbersome if everyone were required to call. But, that doesn’t mean you shouldn’t talk to your insurer about your travels! If you have car insurance questions about driving into the U.S., contact them. It’s always best to know before you go.
That said, there are times when it’s wise to call into your insurer. For example, if you have usage-based car insurance (like
Sonnet Shift), you’ll want to make sure the app works while in the U.S. Even with ‘traditional’ insurance, you may want to call your insurer if:
- you regularly visit the U.S. with your vehicle, or
- you plan to travel for weeks or months at a time
Why? As much as the U.S. is familiar and similar to us, it is not the same. What’s sufficient coverage here, may not be sufficient coverage there.
Do you need extra coverage after crossing the border to the U.S.?
It depends on what you’ve already got. Consider chatting with your insurer for their thoughts on what’s best for you. For example:
- Do you have enough liability coverage?
The U.S. is known for being litigious and having higher insurance payouts. This means if you’re at-fault for an accident south of the border, you could find yourself paying a lot of money out of pocket. Increasing your liability limit to $2 million or more will provide you with better protection should the worst happen.
- Should Family Protection coverage be added to your policy?
Coverage requirements in the U.S. may be lower than what’s mandatory in Canada. If you or your family is injured in an accident, this protection covers the costs of recovery – even if the at-fault driver doesn’t have enough coverage.
- Is Loss of Use coverage a good addition to your policy?
If you’re in an accident, it’ll take time to do the repairs to your vehicle. Loss of Use coverage will help you with your transportation needs (like a rental car or transit costs) while your vehicle is being fixed.
- Is Emergency Roadside Service coverage worthwhile?
If you don’t already have an emergency roadside service, it may be beneficial to add this coverage if your car breaks down in unfamiliar territory.
These are just a few of the most common ‘extras’ that might be worth getting for your travels.
How to file a car insurance claim when you’re across the U.S. border?
Accidents happen and unfortunately they can happen when you’re on holiday. If you’re in a collision, starting an auto insurance claim while you’re in the U.S. is the same as it is in Canada. It usually starts with a phone call to your insurer – you’ll find your insurer’s contact details on your pink slip. Some insurers (like Sonnet) even let you start a claim online, if it’s more convenient for you.
Whichever option you choose, be ready to document as much as you can as soon as possible. Your insurer will want to know the details of what happened and your memory will be freshest right after the incident. Keep note of these things:2
- Date, time, and location of the collision.
- The details of what led up to the accident. What did you do or not do? What did the other drivers involved do or not do?
- The driver’s licence and insurance information of each of the affected drivers.
- Contact information for everyone at the scene including the drivers, passengers, witnesses, and police.
- Damage to all the vehicles involved. Take pictures.
Once you contact your insurer, they’ll guide you through the steps of the auto insurance claims process – even from a distance.
Are rental cars covered by insurance when entering the U.S. from Canada by car?
All vehicles on the road must have auto insurance, including rentals. And while the rental agency is responsible for some mandatory coverages, the car renters are responsible for some of the optional ones. If you’re planning to take a rental car beyond the U.S. border crossing, the insurance could come from one or more of these sources:
- Your auto insurance policy. If you’re leaving your car at home and taking a rental, your policy’s coverage could extend to it. But only if you have extra coverage called Damage to Non-Owned Vehicles. Oftentimes it’s cheaper to add this directly through your insurer than it is to buy the rental agency’s insurance.
- Your credit card. Most credit cards offer coverage for theft or damage to the rental car, up to a limit. The caveat with this option is you must book and pay for the rental vehicle with the card that offers the coverage.
- The rental company. When you book or pick up your rental, you’ll have the chance to buy insurance. You can often purchase both damage and liability coverage options if you’re not already covered by your own policy.
No matter which rental car insurance you choose to go with, make sure you understand what’s covered. What would happen if you’re at-fault for the collision? What would happen if there are injuries? What would happen if you’re sued by the other driver? Having the right insurance can make all the difference when renting a vehicle.
Your car insurance is there for you beyond the Canada - U.S. border crossing
Your car insurance is there for you and your family when bad things happen, like a car accident. With the right coverages, your costs are minimized, helping you get back on the road faster. From offsetting the costs of repairs to recovery if you’re injured, your car insurance is one of your most important travel documents. Don’t leave home before making sure you have everything you need.
