Newcomers to Canada can face costly roadblocks getting auto insurance | 24CA News
A relative newcomer to Canada is questioning the equity of the car insurance coverage construction , saying his driving historical past was not honoured.
Farshad Barzegar moved to Canada in 2021. He shortly realized he couldn’t dwell and not using a automobile, so he purchased one. He then sought out auto insurance coverage protection and that’s when he stated the issues began.
“I tried to get insurance and then I find that they don’t accept foreigner driving history,” he stated.
The 34-year-old man was shocked, particularly since he had been driving for the earlier 16 years in Iran and South Africa. He additionally stated he couldn’t discover any such coverage on TD Insurance’s web site.
“On the website, when you try to apply, they don’t say anything about the driving history must be from America or Canada.”
Barzegar stated he solely came upon when he known as TD to verify he was the truth is lined.
“When I contact them for finalizing the bill they say, ‘Oh no. We don’t accept that. You should put exactly the date you got your driving licence in Canada.’”
When he did, his stated his premium jumped from an estimated $70/month to $200+.
Global News reached out to TD Auto Insurance which advised us to contact the Insurance Bureau of Canada (IBC).
IBC advised Global News: “Generally speaking, driving experience is typically based on Canadian or North American driving experience.”
Officials added Canadian driving guidelines and rules may also range “considerably” from different international locations.
Insurance dealer Barry Haggis, with the Insurance Brokers Association of Alberta (IBAA), agreed the no-history coverage for worldwide drivers is pretty widespread.
“Depending where you’re coming from to Canada, some history can be acknowledged,” Haggis stated. “But the majority of it is not.”
Haggis stated most worldwide drivers are thought of “new” drivers, and premiums will mirror that. He reiterated IBC’s stance that it’s largely because of completely different driving circumstances and guidelines throughout Canada and North America in comparison with different international locations.
Both Haggis and IBC additionally stated, relying on the insurer, a proof of driving historical past from the nation of origin could also be required and that may be robust to get.
“It might be troublesome to get that claims historical past and expertise letters from worldwide international locations. Without that documentation, it’s a toss-up of if we give the individuals the advantage of the doubt or will we cost them nearly as a lot as we might a brand new driver.
“The more documentation we have, the lower rates we can get,” he identified.
Haggis stated it’s vital to notice that the coverage can have an effect on “any” driver who leaves the nation for a time frame.
“This is for any driver, not just international,” he identified.
“There is a 48-month rule where you keep your record intact, but if you are not listed on an insurance policy in Canada for more than 48 months, you can lose the credit you have gained over the years.”
Haggis stated once more it depends upon the corporate, suggesting drivers look to brokers to search for the very best offers. He added a dealer may also discover an insurer who will think about worldwide driving historical past.
Barzegar stated if these are the foundations, he’s OK with them. But, added he’s not OK with the foundations not being clearly spelled out.
“I could have finalized the quotation and pay online — I know some of my friends do that — but I said, ‘OK, just let me double-check.’”
Barzegar stated he was additionally advised he would obtain a letter from TD outlining the coverage, but it surely has but to reach. Again, TD didn’t reply his issues or our questions.
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