Daily Car Insurance Canada: How To Get It? 2024 guide

Ever heard of daily car insurance? It’s like your regular car insurance but tailored for short-term needs — a day, a week or even a month. Perfect for those times when you need coverage on the fly.

But, like any insurance, it has its ins and outs. Let’s dive in and uncover everything you need to know about this convenient option.

Not all provinces offer this type of car insurance. Use our comparator to compare your options in provinces that do offer temporary car insurance. Get your free car insurance quote today and grab the best deals and discounts.

What is daily car insurance?

Daily car insurance is a type of temporary car insurance that lets you get coverage for just one day or a short period like a week or a month. It's essentially a regular car insurance policy but with more flexibility to fit your short-term needs.

It might be useful if:

• You're borrowing a friend or family member's car.
• You're renting a car for a short trip.
• You need to drive someone else's car to get it serviced or repaired (and their insurance doesn't cover you).
• You're a new driver going on a practice session with your learner's permit.

Just like regular car insurance, daily coverage will protect you from financial loss if you get into an accident or your car gets damaged during the insured period.

With that sorted, remember that temporary car insurance typically doesn't cover things like regular maintenance or pre-existing damage. Pick your policy carefully — compare multiple options using our comparator. You can compare personalized car insurance quotes right here for free and instantly.

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How does daily car insurance differ from regular car insurance?

There are many ways in which temporary car insurance differs from regular car insurance. Here are some of them:

Parameter	Daily Insurance	Regular Insurance
Duration	Covers you for a short period, from a single day to a few weeks or months.	Typically covers you for a year, with the option to renew annually.
Cost	Generally more expensive per day compared to a year-long policy, since it's for short-term needs.	Less expensive per day because you're paying for a whole year upfront. You may also get discounts for things like multi-car policies or safe driving records.
Coverage	May have limited coverage options compared to regular policies.	Offers a wider range of coverage options, including liability, collision, comprehensive, and uninsured/underinsured motorist coverage.
Availability	Not all insurance companies offer daily coverage. You might find it from smaller insurance companies or specialized providers.	Widely available from most car insurance companies.
Use Case	Ideal for temporary needs, like borrowing a car or occasional use.	Designed for everyday driving and provides continuous coverage throughout the year.

What does daily car insurance usually cover?

Daily car insurance, like most regular car insurance policies, typically offers coverage for two main areas: liability and physical damage.

Liability coverage protects you from financial responsibility if you cause an accident and injure someone else or damage their property. It usually covers:

• Bodily injury liability: Pays for medical expenses of people injured in an accident you cause.
• Property damage liability: Covers repairs for vehicles or other property damaged in an accident you cause.

Physical damage coverage (optional): This pays for repairs to your car if it's damaged in an accident, stolen or vandalized. It can include:

• Collision coverage: Pays for repairs to your car if you collide with another vehicle or object.
• Comprehensive coverage: Pays for repairs to your car for damages caused by other events besides collision, such as fire, theft, vandalism or weather events.

That said, the specifics of what's covered can vary depending on the insurer and the policy you choose.

What does temporary car insurance not cover?

Here are some things that daily car insurance typically does not cover:

• Routine maintenance: Oil changes, tire rotations and other regular maintenance aren't covered by daily insurance.
• Pre-existing damage: Any damage your car has before you purchase the policy won't be covered.
• Personal injury protection (PIP): This coverage helps pay for medical expenses for you and your passengers in case of an accident, regardless of fault. It might not be available with all daily insurance policies.
• Roadside assistance: This service, which can include things like towing and flat tire changes, might not be included with daily coverage.

How much does daily car insurance cost in Canada?

Unlike yearly premiums, daily rates are less common and can vary depending on the insurer and your specific situation. Similar to regular car insurance, several factors influence the daily rate, including your age, driving history, location and the type of car you'll be driving.

Here is what the daily car insurance rates look like in Vancouver:

To get a better idea, use our comparator to get personalized short-term car insurance quotes from your preferred provider. Just fill in some basic details and get quotes on the go.

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When is daily car insurance a good idea?

Short-term car insurance can be a good option for several groups, especially students. Here’s why:

• Occasional drivers: Many students don't need a car every day. Short-term insurance allows them to have coverage only when they need it, like borrowing a car to run errands or visit home for breaks.
• Cost-effectiveness: For students who don't own a car or drive very often, a daily policy can be cheaper than paying for a full year of car insurance they might not use much.
• Trying out a car: If a student is considering buying a car, they can use daily insurance to test drive it or get it inspected by a mechanic before committing to a purchase.

Daily car insurance can also be useful for:

• People who borrow cars occasionally: Anyone who needs to borrow a friend or family member's car can get temporary coverage for peace of mind.
• Short-term rentals: Renting a car for a weekend trip or vacation can be cheaper with daily insurance compared to the rental company's coverage options.
• Test drives and car transfers: If you're buying a car from a private seller, daily insurance can cover you while you test drive it and get it registered.

Do all provinces offer daily car insurance in Canada?

No, it's not available in all Canadian provinces. Most provinces outside of Ontario and Quebec allow daily or short-term car insurance options.

Ontario and Quebec have strict regulations and prohibit insurance companies from offering temporary car insurance policies.

Which companies offer the cheapest daily car insurance in Canada?

Daily car insurance is not uniformly available across all provinces in Canada, with only a select few providing such coverage.

In provinces where such options are available, the array of insurance providers may differ. For example, in British Columbia, various brokers and insurance companies extend short-term coverage, typically spanning from a few days to several weeks.

Popular options include:

1. Intact Car Insurance
2. TD Car Insurance
3. SGI Canada
4. PAFCO
5. Aviva Canada

Moreover, the extent of coverage varies from one provider to another. For instance, ICBC offers temporary car insurance for durations ranging from a single day up to fifteen days. Check out our complete car insurance guides for the respective providers. We have all the details there — coverage limits, their cost, availability, exclusions and much more.

An alternative worth considering is CAA temporary car insurance, which is accessible in Ontario, Manitoba, Saskatchewan, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador.

To find cheap daily car insurance options in Canada, you can use our comparator to compare multiple policies and pick the one that best meets your budget and expectations.

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