In order to be able to get auto insurance, you should not have to show the vehicle title. Although, it is likely that your insurance company will want proof that you have an insurable interest in the vehicle. Basically, insurance companies want to see proof that you would suffer some kind of an economic loss if you happened to crash your vehicle. In order to prove this, you don’t necessarily have to show the title. In Canada, we don’t technically actually use vehicle titles. Our proof of owning a vehicle is called an ownership. However, a title/ ownership is likely going to work. Your insurance company just wants to make sure that it has its bases covered and prove that you aren’t committing fraud.

If I Don’t Have Access To My Vehicle’s Title, What Else Can I Show My Insurance?

title

Not everyone does have access to a title/ ownership. Due to this reason, there are other things that an insurance company will accept. The easiest thing to give them would be a bill of sale in most cases. Most insurance companies will take this as proof that you are not committing fraud. When you are financing a vehicle, the dealership will usually keep the title/ ownership until you pay off what you owe on the vehicle. Insurance companies realize that this is a common occurrence. They should be more than happy to work with you to find a solution to prove you have an insurance interest in the vehicle. Sometimes your insurance provider will be able to provide you temporary insurance without proof of ownership. However, there is usually a time limit set into place where you have to prove ownership of the vehicle.

Do You Need The Car Title To Register A Car?

Generally speaking, yes a car title/ ownership is needed to register a vehicle. However, depending on how you purchased your vehicle, you might not have to do anything. If you buy a vehicle from the dealership it is likely that they will do the registration paperwork for you. Unless you buy the car outright from the dealership, then they are likely going to be keeping the title/ ownership until you pay off your vehicle. When this is the case, you don’t need an ownership to register your vehicle. It is an entirely different scenario if you buy a used vehicle. You will need the ownership to be able to register the vehicle on your own. Make sure that you get the ownership of the vehicle from the owner when you purchase it.

Does Your Car Insurance And Registration Have To Be Under The Same Name?

This really depends on the insurance company that you are dealing with. Most insurance companies will allow this to occur. It is legal for someone to insure a vehicle without actually owning it. However, most insurance companies will question this and want proof from the owner of the vehicle. When the insurance company has proof that the owner will allow the driver to have an insurance policy on their vehicle, then the insurance company will write one up. However, some insurance companies are more strict about this. There are some companies that do not allow the name on the car title/ ownership to be different than the one on an insurance policy.

How Do I Get A Car Title/ Ownership?

onwnership

When you buy a vehicle in Canada, you should receive the ownership. The ownership is essentially proof that you own the vehicle and you should have it in your vehicle if you have one. When you get a lease, you will not get the ownership. However, you will get a piece of paper stating your name on it and all of the vehicle information. This acts essentially as an ownership paper for people who get a lease.

How Do I Transfer Ownership Of A Vehicle?

Transferring the ownership of a vehicle to someone else is relatively easy to do. You must go to your local service center and bring with you the proper documents. Make sure that you bring proof of insurance, a sworn statement if the vehicle is a gift, your driver’s license, your safety certificate, the vehicle ownership, an emissions test if necessary, as well as a declaration of a license plate transfer if you are keeping the license plates. Once you bring all of these to your local office, you should be able to complete the transfer. It is important to note, there is a limit of one transfer of the vehicle every 12 months.

How Much Tax Do You Pay When You Transfer Vehicle Ownership?

tax

The amount of tax that you pay on your vehicle depends on how you received it. If your vehicle was a gift from a family member, you do not have to pay retail sales tax on it when you receive it. However, if you purchase a vehicle from another person, you are going to have to pay taxes on it. The amount of tax that you pay depends on what the value of the vehicle is deemed to be as well as what province you live in. Some provinces have steeper taxes than others, but you should expect to at least pay the Canada wide federal 5 percent tax plus whatever provincial tax amount your province has in place. Tax can be pretty expensive, especially when purchasing a new vehicle. It is definitely an expense you should keep in mind.

To Conclude:

It is not all that hard to get insurance without showing your insurance company the title. Bring the proper documents with you and you shouldn’t run into any problems. All you have to do is make sure that you prove you have an insurable interest in the vehicle. It is also easy to transfer insurance, especially if it is over to a relative. If you are having any troubles or have any questions regarding your ownership, you can simply stop by your local service center and they will be happy to help you out.

Resources:

http://www.nasdaq.com/article/you-dont-need-the-title-to-insure-a-car-cm258807
https://www.ontario.ca/faq/how-do-i-transfer-ownership-vehicle-family-member
https://dmv.ny.gov/registration/register-leased-vehicle
http://www.dodgecharger.com/forum/index.php?topic=98744.0
http://thelawdictionary.org/article/does-your-car-insurance-and-registration-have-to-be-under-the-same-name/
https://www.ontario.ca/page/register-and-insure-vehicle-ontario
https://www.carinsurance.com/insurance-without-car-title.aspx
http://www.nasdaq.com/article/you-dont-need-the-title-to-insure-a-car-cm258807
https://www.ontario.ca/faq/how-do-i-transfer-ownership-vehicle-family-member