While a car owner usually purchases car insurance for their own vehicle, there’s really nothing preventing another person from buying a policy for someone else, provided all required information is on hand, the driver is legally entitled to drive and nothing is misrepresented about the policy.
Adding drivers to car insurance
There are circumstances we take for granted that essentially come down to buying car insurance for someone else. For example, when a teen obtains a driver’s licence and their parents add them to the policy of a family car, generally the teen isn’t aware or involved, though the parents might send their child out for a part-time job to offset the cost. Any occasional driver added to a policy is in essentially the same situation.
Purchasing insurance for a car purchase
Though it’s not really buying for someone else, a motorist can buy a policy on a car they intend to purchase, while it’s still owned by the seller. In Canada, car insurance coverage is mandatory in all provinces and territories, and it’s part of the registration and licencing process. Thus, purchasing insurance for the vehicle before the transaction carries out expedites the sale, change of ownership and licence plate validation activities.
What information do I need to buy insurance for someone else?
Adding an occasional driver, you’d only need personal information for that driver. This includes personal information such as birth date, gender and marital status. Your insurer will want that driver’s history, such as when they received their licence, the number of years they’ve been legally entitled to drive in Canada and the United States. History includes traffic tickets and claims made with other companies. Driver training certificates for young drivers would be disclosed at this time.
Insuring a primary driver adds a few steps. As well as all the information listed above for an occasional driver, the insurer needs information about the car, including make, model, year and VIN. In addition, they’ll need intended driving for the vehicle, details such as how many kilometers you’ll drive annually as well as distances driven to work daily. Any business use of the vehicle should be disclosed as well.
If you’re currently insured, sharing details of your current policy helps ensure a smooth transition. You’ll need to share your diver’s licence and ownership information. If you’re buying a car, ownership can be provided after the purchase.
A good summary of required information appears here, pertaining to Ontario insurance, but applicable in most places in Canada with a few changes. For example, Nova Scotia does not allow age, gender or marital status for risk determination. The provinces of Quebec, Manitoba, Saskatchewan and British Columbia have public insurance programs, so their requirements may be somewhat different, though both BC and Quebec have private insurance portions in addition to the government-run insurance.
No matter who you’re buying for, locating the best prices means comparison shopping. Quote Finder’s car insurance calculator searches the widest range of insurance providers to match your needs with the best prices. Try it out today to see how much you can save.