As summer road trips pick up, the Insurance Bureau of Canada (IBC) has reminded drivers to check their auto insurance coverage before heading out.
Edward Zhakata, IBC’s manager of consumer and industry relations for Atlantic Canada, said most standard policies follow the policyholder’s vehicle across all provinces and territories. But while coverage is portable, how claims are handled depends on where a collision happens.
“The rules of the province or territory where the crash occurs determine how fault is assessed and how claims are processed,” Zhakata said.
The IBC encouraged drivers to review their policies before travelling, especially if they’ve opted out of optional coverage like direct compensation for property damage, which can affect how vehicle damage is paid for in collisions.
Planning to share driving duties? The IBC said that a licensed guest can legally take the wheel with a policyholder’s permission and their auto insurance will generally extend to them.
However, Zhakata noted that any claims made while a guest is driving could impact the policyholder’s renewal rate. If someone will be driving regularly, IBC said it is best to list them as an occasional or secondary driver. In some provinces, insurers require all licensed households members to be listed on the policy, even if they don’t drive often, according to the bureau.
In terms of renting a car, some personal auto policies offer optional rental coverage. In case of lack of auto insurance, the IBC said some rental companies typically include basic liability, with options to add damage or loss protection. Some credit cards are offering rental coverage too, the IBC said.
In case of a collision, whether in the policyholder’s own car or a rental, the IBC suggested that the first thing to do is to inform one’s insurer or the rental company and follow the standard reporting steps.
IBC also recommended downloading its collision form before travelling and keeping proof of insurance on hand.
“Insurance isn’t just about where you live—it travels with you,” Zhakata said. “Understanding your coverage can help keep your trip on track.”
