Moving to Canada from the U.S.? Here's What Nobody Tells You About Getting Behind the Wheel.
Sep 4 2026 — Three things that need to happen before you leave — and one of them closes permanently the moment you cross the border.
READING TIME: 5 Minutes
PEEL REGION, ON - You've accepted the position. Signed the lease. Arranged the move.
You assume driving in Canada works the same as driving in the United States. You have a valid licence. You've been driving for years. How complicated can it be?
More complicated than anyone tells you — and specifically in the first few weeks after you land, when the gap between what you expected and what's actually required becomes very real.
Here's what nobody put in the relocation package.
The Part Everyone Gets Wrong
Every article written about moving to Canada from the U.S. covers health insurance. Provincial health card waiting periods. Visitor to Canada medical plans. Travel coverage for the gap between arrival and OHIP eligibility.
That conversation matters. It's also the only insurance conversation most people are having — and it misses the one that creates the most immediate, practical problem for almost every American who arrives with a vehicle in their package or plans to drive in Canada.
You cannot simply show up with a U.S. licence and be insured under a Canadian auto policy. There are three things that need to happen before you leave — and the most time-sensitive one closes at the border.
Step One — The International Driving Permit
An International Driving Permit is a certified translation of your U.S. driver's licence, recognized in over 150 countries including Canada. Canadian insurers and licensing authorities require it alongside your U.S. licence before you can be listed on a Canadian auto policy.
The part that catches almost everyone off guard: an IDP can only be issued inside the United States.
Once you cross the border, the in-person option is permanently closed. The mail-in alternative — through AAA's Florida office — takes five to seven weeks. During that entire window, you cannot be listed on a Canadian insurance policy. If a vehicle has been provided as part of your relocation and you are driving it, that vehicle is uninsured.
How to get it before you leave:
In person at any AAA branch — same-day issuance. The visit takes less than thirty minutes. You need your valid U.S. licence, two passport photos, and twenty dollars USD. The permit is issued on the spot.
Do this before you pack. Before the movers arrive. Before any other step in this list.
Reference: aaa.com/vacation/idpf.html
Step Two — Your Driver's Abstract
Canadian insurers cannot access U.S. driving records. Before placing you on a Canadian auto policy, your broker will need documentation of your driving history — specifically a formal driver's abstract from your home state's DMV.
This is different from the Letter of Experience covered in the next step. The abstract is the official record from the government — your licence history, how long you've been licensed, and your driving record. It is the foundation document that proves your history to a Canadian insurer.
Most states allow you to request this online, by mail, or in person. Processing times vary by state — some are immediate, others take one to two weeks. Request it early and request it before you leave.
Where to get yours — by state:
Every U.S. state has a different process for requesting your official driving record. We've compiled the full list so you know exactly where to go depending on where you were previously licensed. Click the link below.
View the full state-by-state DMV guide
Step Three — The Letter of Experience
The driver's abstract tells a Canadian insurer how long you've been licensed and your driving record. The Letter of Experience tells them about your insurance history — and in Canada, those are two separate conversations.
Canadian insurers do not have access to U.S. insurance records. When a U.S.-based driver arrives without documentation of their prior insurance coverage, they are treated as an unknown risk. That means higher premiums, restricted coverage, or in some cases declined placement entirely.
A Letter of Experience is a formal document from your current U.S. insurance broker or carrier, on company letterhead, confirming how many years you have been continuously insured, whether any at-fault claims appear on your record, and the carrier name, policy type, and dates of coverage.
With this letter, your U.S. insurance history transfers to Canada. Without it, you start from zero on day one.
How to get it: Contact your U.S. broker or insurance company before departure and request the letter. Most carriers turn this around in twenty-four to forty-eight hours. One call or email, and it's done.
“The abstract and the Letter of Experience are two documents that do two different jobs. The abstract proves you've been licensed. The letter proves you've been insured. Canadian insurers need both — and most incoming U.S. professionals arrive with neither. Getting both before departure takes one morning and costs nothing. Arriving without them costs significantly more."
— Bram Bains, Maverick Insurance Brokers
What This Actually Costs When Nobody Does It
The math is not complicated.
Do all three steps before departure — IDP at AAA, driver's abstract from your state DMV, Letter of Experience from your U.S. broker. Total cost: between $20-$30 USD, one online request, and one phone call.
Arrive without the IDP — five to seven weeks of Uber credits, rental reimbursements, or daily transportation allowances while the mail-in IDP processes. In a major Canadian city for a senior professional, the conservative estimate is $3,500 or more before anyone gets behind the wheel of the vehicle that was supposed to be ready on day one.
Arrive without the abstract and letter — higher insurance premiums from the start, potential placement challenges, and a risk profile that doesn't reflect who you actually are as a driver. That cost follows you through every renewal until your Canadian history is established.
The Coverage Nobody Talks About
The driving documentation is the most immediate issue. But the broader insurance picture for an American arriving in Canada is worth understanding — because the advice that gets offered most often is almost entirely about health coverage, and health coverage is only part of what someone in this situation actually needs.
Auto insurance is urgent and addressed above. The three pre-departure steps make proper placement possible.
Property insurance is next. Whether you are in a furnished corporate apartment, a short-term rental, or a leased property — personal liability coverage for individuals in Canada flows through a home or tenant policy. Without one in place, there is no personal liability protection. For a professional with a public profile, assets, and a vehicle in a new country — that gap is real and almost universally overlooked.
Excess liability matters more than most people at this income level realize. The Chubb 2025 Wealth Report found that 81% of high-net-worth individuals carry no excess liability coverage. For incoming talent at the professional level — someone earning well, driving in an unfamiliar environment, and establishing themselves in a new city — the liability conversation deserves the same attention it would receive anywhere else.
Most visitors to Canada read about travel health insurance. Almost none read about the auto and liability gaps that open the moment they arrive with a vehicle and no Canadian insurance history.
Before You Land
The checklist is shorter than most people expect.
Before you board the plane — visit AAA and get the IDP. Request your driver's abstract from your state DMV. Contact your U.S. insurance broker for the Letter of Experience.
Upon arrival — forward all three documents to your Canadian broker. Coverage can be placed quickly once the documentation is in hand.
Before keys are exchanged — confirm coverage is bound in writing.
This is a fifteen-minute conversation on the Canadian side. The work happens on the U.S. side before departure.
If you or someone you know is navigating a cross-border move to Ontario and needs a Canadian broker who understands this process — the conversation starts here.
This article is for informational purposes and does not constitute legal or tax advice. Speak with a licensed broker and your accountant to confirm the right structure for your coverage in Canada.
References: AAA — International Driving Permit. aaa.com/vacation/idpf.html · Uber — Proof of Driver's Licensing History by State. uber.com/us/en/drive/requirements/how-to-provide-proof-of-licensing-history
About Maverick Insurance Brokers
Maverick Insurance Brokers is an independent private client advisory based in Brampton, Ontario. Founded by Bram Bains, Maverick serves entrepreneurs, business families, and community leaders across Ontario — providing direct access to a trusted advisor across home, auto, high-value assets, and commercial insurance. Maverick is a member of the MIB Broker Distribution Network and an official partner of the Brampton Honey Badgers (CEBL).
Maverick works with Canada's leading private client carriers — including Chubb and Intact Prestige— to deliver insurance programs built around the assets, lifestyle, and risk profile of each client.
Maverick Insurance Brokers has been recognized by Insurance Business Canada and Canadian Underwriter as a voice in the private client advisory space in Ontario.
for more information visit - maverickinsurance.ca
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