Question 18: What information should newcomers to Canada consider when obtaining automobile insurance quotes?

1. Drivers Licence
If you are new to Canada, you must exchange your driver’s license for a Newfoundland and Labrador licence within three months of becoming a resident. Licencing is handled by the Motor Registration Division with oversight from Digital Government and Service NL. More information on the driver’s licence application process can be found here.

2. Shop Around for Coverage
Newcomers to Canada who have a record of clean driving history can often obtain competitive automobile insurance rates. Every insurance company has its own process for setting rates, so it’s important to shop around, get multiple quotes and compare rates to ensure you are getting the best price available.

3. Driving History Documentation
The availability of your driving history from other countries may impact how much you pay for insurance. Different insurers have varying approaches of how they consider driving history from outside of Canada, so it’s important to shop around and ask questions about how your quote is calculated.

Below are some examples of how different insurers may consider driving history when quoting a policy:

When driving history from other countries is available:

• Insurer may consider all available driving history from outside of Canada. This would result in lower rates for experienced drivers with no prior accidents or convictions.
• Insurer may consider driving history from outside of Canada, but only credit a maximum of three years of driving experience when rating a new policy.

When driving history from other countries is not available:

• Insurer may provide credit for up to three years of experience based on good faith disclosure only
• Insurer may treat the applicant as newly licenced driver and quote policy at much higher rates

4. Rating Factors
When you request an insurance quote, insurers will ask several questions to figure out the rating factors that affect your price. These factors help assess the risk associated with your policy. It is important to answer these questions accurately. Common rating factors include driving history, vehicle type, vehicle usage, and location.

5. Rate Changes
Some insurers have filed special rating programs with the Board aimed at lowering rates for newcomers to Canada. The Board has streamlined a review process for the quick approval of such proposals. Consumers can monitor the Board’s website for regular updates on rate changes, industry initiatives, and other relevant information.