Can Car Insurance be Transferred?

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can car insurance be transferred

If you’re buying a car or thinking about selling or gifting your car to someone, then you’re probably wondering if you can transfer your car insurance to another person. Well the answer is yes you can transfer your car insurance to another person in Canada.

Before you begin the process of transferring your insurance, you need to have make sure you have your ducks in a row. You’ll need to make sure you have all of the proper car registration documents at hand.

Legally, you are not able to complete a vehicle insurance transfer without signing the title of the vehicle over to the other party. When the vehicle registration is transferred, the policy of the former owner is no longer valid.

Important: Always make sure you notify your insurance company of a change in ownership, otherwise any claim you make will be denied.

Yes, you can transfer your car insurance policy to a different vehicle. In fact, this is a common scenario when people purchase new vehicles.

The first thing you’ll want to do is contact your insurance company and notify them of your new vehicle purchase. Most insurance providers have an online portal where you can change your policy, however, it is recommended to speak with your broker. One of the reasons this is recommended is if you purchase a new vehicle, you’ll most likely want to add additional coverage to protect your new, shiny investment.

Another important thing to remember is when you transfer your insurance to a different car, you’ll want to make sure your other vehicle has been removed from your insurance policy. The last thing you want is to be paying for a vehicle you’re not driving.

How do you transfer the ownership of a car?

When you decide to transfer ownership of your vehicle, there are a couple steps you need to take. We’ve broken down these steps for people selling their vehicles & people buying a vehicle.

Steps for the seller:

  1. First things first, you’ll need to pick up a transfer/ tax form from any car insurance broker. Due to COVID-19, the transfer/ tax form is available for download. You can download the form here. Please note the original signatures are still required.
  2. Remove your license plates from the vehicle.
  3. Remove your insurance and registration. The insurance and registration are normally two parts of the same document (APV250).
  4. Carefully tear off the bottom part of the document. This is the vehicle registration.
  5. Give the vehicle registration to the buyer. Make sure it has your signature.
  6. After you’ve received payment for the vehicle, fill out and sign the transfer/ tax form. Each of the four pages must have original signatures.
  7. In order to complete the transfer, you will need to take the registration and transfer/ tax form to a car insurance broker. It is highly recommended that you go with the buyer to ensure this is done in a timely manner and your insurance is removed from the vehicle registration record. This is extremely important in avoiding any possible liability claims associated with the future operation of the vehicle. If you’re not able to visit the broker with the buyer, keep the seller’s copy, with original signatures from both you and the seller.
  8. Don’t forget to cancel your insurance policy or transfer it to a new vehicle.

Steps for the buyer:

  1. Get the original vehicle registration, with the owner’s signature on it, from the seller.
  2. Fill out and sign the buyer’s portion of the transfer/ tax form. Available for download here.
  3. To finish the transfer, take these documents to a broker. It is strongly recommended you go with the seller.

Do I need to be on the vehicle registration to be insured?

If you’re looking to get insurance for a vehicle that is not in your name it can prove difficult.

In order to get insurance on a vehicle, you need to have something to lose if the car gets into an accident. Someone not on the vehicle registration typically does not have a lot to lose. It all comes down to proving to the insurance provider that you have an insurable interested in the vehicle. If you can make this case, you’ll have no problem getting insured.

An example of this would be getting insurance on your child’s vehicle. Your insurance broker will, 10 times out of 10, recommend that you are listed as a driver on the vehicle to insure you are protected.

What is a transfer of insurance form?

A transfer of insurance form is a document that must be filled out prior to transferring your insurance. This form must be completed within 30 days of the sale of your vehicle. Thankfully, the form is short & sweet – but it must be filled out by both the new owner and original owner of the vehicle. The form lays out what documents you need to provide the new owner, including:

  • Maintenance records
  • Warranty

To sum things up, this form stands as legal proof that a transfer has taken place and that both parties have agreed.

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