Car Insurance Eligibility and Restrictions

Not sure if you’re eligible for car insurance? Don’t worry. We’ve taken out the guess work. Here are the conditions that make you eligible for car insurance:


You must have a valid driver’s license

To obtain an auto insurance policy, you need to have a valid license. If you intend to list any other drivers on the policy, they will also need to have a valid driver’s license.

Be a resident of Canada

All drivers for the insured car must reside in Canada.

Past losses or convictions

Eligibility is also based on things like prior accident record as an example and will vary depending on whether you are looking for a new car insurance policy or wish to renew an existing policy. Other restrictions may arise from past convictions and can vary depending on when your last conviction occurred and the nature of the conviction.Here are the restrictions that may prevent you from getting car insurance:

Use and type of vehicle

Your automobile must be for personal use.

Customization or modifications

If you have altered your vehicle to enhance its performance or appearance, insurance companies would need to assess the vehicle to determine if they would insure it. Tip: If you plan to modify your vehicle, call us first! We’ll let you know if the changes could have an impact on your policy.

Legal issues

If you have been convicted of auto insurance fraud in the last 10 years, or were involved in any fraud or misrepresentation, this could affect the likelihood of your obtaining insurance. Please note that your policy may be nullified (voided) and your claim payment denied if:

  • You omit or fail to disclose any facts and relevant matters known to you which are likely to change the insurers willingness to offer you a policy

Other issues

There are a number of other factors that can prevent an insurer from issuing a policy:

  • Your automobile has substantial unrepaired damage or is unfit or unsafe
  • Your automobile is rented or leased to others
  • Your automobile is used for racing or competition

In case of discrepancy between the information provided on this website and your insurance policy, your insurance policy prevails. Remember, the exclusions and limitations specified in your policy apply in all circumstances.

The information and examples provided in this section are intended as general information only. This does not constitute legal or insurance advice, nor does it pertain to determination of fault. In all cases, you should speak to an insurance advisor before acting. Your insurance policy contains limitations and restrictions which vary by province and may affect your coverage and/or determine whether or not benefits will be payable.