Like car ownership, most people think of car insurance as a costly long-term investment. In Ontario, all registered vehicles must have insurance coverage that covers:
- Third-party liability of at least $200,000.
- Accident benefits for medical costs that exceed your provincial health coverage.
- Direct compensation in case your car is damaged by another driver.
- Uninsured motorist for medical costs caused by an uninsured driver.
While standard car insurance premiums in Ontario last at least six months to a calendar year, you can also find temporary car insurance.
Temporary car insurance is usually hard to find in Ontario because we have some of the country’s strictest insurance regulations. However, because of the evolving needs of car ownership, it is not impossible to get.
Below, we discuss what temporary car insurance is and what you should know if you are looking for short-term coverage.
Short Term Car Insurance Ontario
There are cases where an insurance company might offer you temporary car insurance.
Temporary car insurance is usually an insurance policy that covers a vehicle for a period of fewer than six months and sometimes for only a few weeks. All temporary car insurance plans come with liability coverage.
You might need temporary car insurance if you:
- Are renting a car.
- Have other people that occasionally drive your car.
- Are driving someone else’s car.
- Are driving more frequently for a short period.
- Do not have a permanent insurance policy yet.
It is a great choice for saving money if you do not drive all year round or need temporary additional coverage.
Best Short Term Car Insurance in Ontario
Although your options are limited, there are certain temporary or pay-as-you-go plans that may fit your needs.
For temporary car insurance in Ontario, you are more likely to find success looking at insurance policies with no cancellation fees. This allows you to stop paying when you no longer need it.
You can also consider insurance policies that allow you to remove certain coverages during the time your vehicle is not in use.
The MyPace pay-as-you-go plan from the CAA is also a worthy option to consider.
The MyPace plan was developed for drivers that use their vehicles for under 9,000km per year. Drivers sync their car to an app that monitors the distance they drive. Depending on your actual mileage each year, you can control the amount of car insurance premium you pay.
Adding Your New Vehicle to an Existing Policy
If you already have an insurance policy, you may be able to add your new vehicle to your existing policy.
The advantage to insuring under an existing policy is that your insurance will generally be cheaper than opening a new insurance policy.
You can select what type of coverage you want, such as comprehensive, collision, or all perils coverage, which helps you reduce the amount of money you pay for premiums based on your driving needs.
Renting a Vehicle
If you are renting a vehicle for your short stay, most rental companies offer rental car insurance packages that apply only to the duration of your stay.
Rental car insurance includes:
- Collision damage.
- Personal effects coverage.
- Personal accident coverage.
- Liability coverage.
However, be careful of the rates charged for rental coverage as it could be higher than permanent insurance after a certain period.
Commonly Asked Questions About Car Insurance
Here are some FAQs.
How long can you insure your car with temporary car insurance?
Most insurance companies offer coverage starting from six months, although rental companies can offer insurance only for the duration of your stay.
How much is temporary car insurance?
The rates depend on your vehicle, driving needs and history, age, and company policies.
What happens if I get into an accident?
The insurance company will determine the fault degree of all parties involved, and the people at fault will have their premiums adjusted. If you are 100% not at fault, your rates will not go up.
Can You Get Temporary Car Insurance for Young Drivers in Ontario?
It is common for young drivers, especially students, to have temporary car insurance if they are visiting from school or are listed under their parents’ insurance policy as occasional drivers.
Your insurance provider will assess the risks you pose as a young driver and determine the premiums.
Can You Buy Temporary Insurance for a New Car in Ontario?
When buying a new car, you must have insurance before taking the vehicle home. You can buy temporary car insurance while you are looking for a suitable permanent policy.
How Do You Get Temporary Auto Insurance?
You have to contact your insurance or rental car company about their temporary coverage rates.
If you are planning to cancel a permanent policy, like a six-month or one-year policy, be aware of cancellation fees or penalties that may incur.