Auto insurance hurdles can raise costs for new immigrants
Auto insurance hurdles can raise costs for new immigrants | Insurance Business Canada
Motor & Fleet
Auto insurance hurdles can raise costs for new immigrants
Newcomers to Canada face roadblocks related to their driving history
Motor & Fleet
By
Mika Pangilinan
A recent immigrant to Canada has raised concerns about the fairness of the auto insurance system after he discovered that his foreign driving history would not be recognized by insurers.
In an interview with Global News, Farshad Barzegar said he discovered the roadblocks facing new immigrants when he attempted to obtain auto insurance coverage soon after moving to Canada in 2021.
The 34-year-old said he found no mention of such restrictions on TD Insurance’s website and only came to know about it as he tried to finalize his bill.
“On the website, when you try to apply, they don’t say anything about the driving history must be from America or Canada,” said Barzegar, who shared that he had been driving in Iran and South Africa for 16 years.
Barzegar said he was told to put the date he got his Canadian driving license, but doing so brought his premium up from an estimated $70 per month to over $200.
According to Global News, IBC responded by stating that driving experience is “typically based” on Canadian or North American history, adding that driving regulations in Canada can vary “considerably” from other countries.
Barry Haggis from the Insurance Brokers Association of Alberta (IBAA) agreed that it is common for international drivers to be considered new drivers by insurance providers.
“Depending on where you’re coming from to Canada, some history can be acknowledged,” the insurance broker told Global News. “But the majority of it is not.”
Echoing IBC’s statement, Haggis said this is due to the different driving conditions and regulations across Canada and North America compared to other countries.
Haggis also brought up the challenge of obtaining proof of driving history from the driver’s country of origin.
“Without that documentation, it’s a toss-up of if we give the people the benefit of the doubt or do we charge them almost as much as we would a new driver,” he said. “The more documentation we have, the lower rates we can get.”
Furthermore, Haggis emphasized that the policy affects not only international drivers but also any driver who leaves the country for an extended period.
“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,” he said.
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