Vehicle Insurance for new immigrants...

M

mimico_polak

Well-known member
Site Supporter
Hi guys,

Not a motorcycle insurance question.

I have a co-worker who's in a bit of a ******** situation...he's in his mid 40's and has been driving for years in Europe prior to coming here. He's been looking for an insurance company to insure him but anywhere he contacts they are looking at approximately $400+/month because of the lack of Canadian driving/insurance record.
I've forwarded him to some contacts I've had but each comes with the same price +/- $20/month or so...

Does anyone have any recommendations or suggestions? I'm just trying to help the guy out but not sure what else to recommend. Anyone know any immigrant/new driver friendly insurance companies? The car he wants is a 1997 4-door civic (approximate value of vehicle is about $2000).

Thanks for your help and time in advance. Also if anyone here offers insurance and is willing to take a look at the file please let me know and I'll forward my colleague's info to you.
 
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Depending on the country he is from some insurers will credit driving insurance from foreign countries, especially if the company also does business the country your friend is from.

For example, if he is from Switzerland and was insured with XYZ Insurance, and XYZ Insurance also writes business in Canada they may give him credit for his driving record in Switzerland.

In an effort to be proactive he may want to approach his previous insurer and ask for a letter of experience and provide that to anyone he approaches now.
 
His vehicle choice also plays a factor. Have a look at a less desirable vehicle or one that has less claims than the Civic he's looking at. That plays a factor as well. Also increasing his deductibles will reduce his premium, and for a car that old, he wouldn't necessarily need collision so 1-way coverage is also something to consider, to lower the premium.

ideally, a corolla or a hyundai excel (4 cyl grocery getter) is a better choice than the civic, based on claim and theft rates alone. Know what I mean?

There's a PDF floating around the insurance section here that can give you a better guide to which vehicles are more insurance friendly.

Good luck.
 
First couple of years will be brutal for him. What will help:
1. Complete driving school (the one with classroom time, etc) and make sure to mention it when shopping for insurance
2. Find out at MTO and insurance company if driving/insurance record from his home country can be counted in
3. Work with good broker (wihin his local community or ask here or RFD for recommendation)
4. Look at combining his home insurance, etc with car policy to et multi-line discount
5. Get full G as soon as possible - most countries driving history will be recognized and he should be allowed to take full G test without going through G2 (confirm at MTO).
 
Mongol is perfectly right - especially regarding driver's training. If your friend can complete the full course, he will automatically be given 3bonus years experience of driving, which will do wonders for his rates. Then he can go for his G license as well, which will give him an additional discount (graduated license discount - make sure he calls the broker or company right away to inform them he got it). If he's renting an apartment, or buying house/condo - he should insure that with the same company as well for more discounts. In today's insurance market (it's a "hard" market because profit margins have shrunk) it might be difficult to get any company to honor driving experience outside of North America, but it's worth a try.

The companies I deal with don't have the best car insurance rates for drivers just starting out, whether young ones or newcomers, but I would advise you to check out any of the following:

http://www.kanetix.ca/ (will search several direct insurance companies)
Belair Direct
Desjardins
TD
RBC
CAA
Co-operators
All State
 
Tell him to get a friend or relative to put him down as secondary for about 6months and to suck it up with no car for that time. He can pay the 100 dollars increase and then 6months later his insurance will be cheaper

Sent from phone
 
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