What's New - Buying a Car in the USA?
The purpose of this document is to provide a brief overview of the process involved to import a vehicle from the United States of America. Knowledge of this process is necessary to understand what underwriting actions are to be taken for a vehicle to be imported into Canada. Process to Import a Vehicle from the United States of America The Registrar of Imported Vehicles is contracted by Transport Canada to operate a national program to inspect, certify and register vehicles imported from the United States of America. The purpose is to ensure only vehicles meeting Canadian safety standards will be imported to Canada. The steps involved in importing a vehicle are outlined on their website www.riv.ca. Following is a brief overview of the process for the vehicle owner:
1) Ensure the vehicle is admissible.
Transport Canada maintains a list of vehicles that can be imported. Generally private passenger vehicles not more than 15 years old are permitted. However, there is a lengthy list of inadmissible vehicles. A significant number of these vehicles can be imported if modifications are completed, such as the installation of seatbelt systems and repairs done to comply with a vehicle recall for Canada. See Transport Canada's List of Vehicles Admissible from the United States on the www.riv.ca website. Click on the US Vehicle Admissibility tab.
2) Obtain the necessary paperwork and pay the appropriate fees.
The necessary documents include: title documents, registration, sales receipts, compliance label and a manufacturer's recall clearance letter. The compliance label indicates the vehicle was built to comply with the US safety standards. If there has been a US recall, there must be proof the work has been completed. US Customs requires 72 hours notice of a vehicle being permanently exported from the USA. The Canada Border Services Agency requires a Vehicle Import Form to be completed. Once they have confirmed the vehicle is admissible, with or without modifications, the registrar's fee must be paid, $197 in Quebec or $182 outside Quebec.
3) Federal inspection
Within 10 days after the vehicle has entered Canada, the Registrar of Imported Vehicles, RIV, will sent the vehicle owner an inspection document. This document lists what repairs and/or modifications are necessary to comply with Canadian safety standards. The repairs and modifications must be completed within 45 days. A federal vehicle inspection must be completed. Canadian Tire has been contracted by RIV to perform these inspections. A Canadian certification label will be issued approximately one week later. This must be affixed to the vehicle. If the vehicle cannot pass the inspection within 45 days it must be exported back to the USA.
4) Vehicle registration
Once the vehicle passes the federal inspection the vehicle can be registered and plated with the applicable province or territory. A provincial safety inspection may be required.
Underwriting Considerations
Newly acquired automobiles
A newly acquired automobile is an auto or trailer, where the named
insured is the owner, and the vehicle is not insured under any other
policy. The Insurance company must be be informed within 14 days from the time of delivery. It
can be a replacement vehicle or an additional vehicle. A replacement
vehicle will have the same coverage as the vehicle it replaces. There
will be coverage for an additional vehicle if we insure all the
client's automobiles. In the event of a claim there is coverage, it the applicable
coverage is common to all the client's other insured vehicles.
Trip Permits and Temporary License Plates
In the USA the Department of Motor Vehicles issue license plates. The
rules and regulations differ by state. Generally, non-residents are
eligible for a trip permit if there is proof of insurance and the
applicable fees and taxes are paid. A trip permit may be valid for 10 -
30 days.
What can be done?
The following steps are to be taken to avoid insuring a vehicle that
cannot be registered in Canada:
- Obtain a description of the vehicle, including the VIN.
- Check Transport Canada's list of admissible vehicles.
- Check the VIN with Web Claims Search. Confirm it is not a salvaged, unrepairable vehicle.
