According to Statistics Canada, during the first quarter of 2023 Canadian residents took 6 million trips to the U.S., more than three times the number of trips from the same quarter in 2022 (1.7 million) and reaching the same number of trips taken pre-pandemic during the same quarter in 2019. Holiday, leisure or recreation (3 million trips) and visiting friends or relatives (1.3 million trips) were the most reported reasons for heading south of the border.
In 2021, the last year for which numbers are available, Statistics Canada reports that more than 3.3 million Canadian vehicles returned from the U.S. to Canada between the months of August and December. According to the Snowbird Advisor member survey from November 2023, almost 70% of the estimated 5.3 million Canadian snowbirds who go to the U.S. drive down for the winter, with many others having their cars shipped down from Canada.
All of this adds up to millions of opportunities to have an accident in the U.S., and drivers should be cautious of some crucial differences in auto insurance coverage.
At the scene? Same rules apply
After an accident the same sort of response at the scene applies in the U.S. as well as Canada.
Immediately following an accident:
- Stay calm. Take a moment to breathe deeply and make sure you’re not hurt.
- If you are not hurt, check on others who may be in the vehicle.
- Call 911 immediately if anyone is injured.
- If your vehicle is still drivable, move it to the side or shoulder of the road.
- If it is immobile, put on your hazard lights.
- Call the police if any vehicle involved in the accident can’t be moved.
- If safe to do so, check on the well-being of others.
Since you are in a different country and different rules apply, it’s recommended to contact law enforcement even if there are no apparent injuries. You never know what could appear over time, and Americans are a litigious group. In addition, the more reliable witnesses you can gather, the better.
You need to also exchange contact and vehicle insurance information with the other drivers involved in the accident. Many auto insurance companies have apps that walk you through what to do, step-by-step. We all have cell phone with cameras, as well. This is the best time to use them!
If safe to do so, take pictures of everything at the scene, including:
- The licence plates of the vehicles involved
- All visible damage
- The intersection or street where the accident occurred
Information you should obtain includes (it might be easier to take a picture of these, too):
- The full names, addresses and telephone numbers of all the other drivers involved in the crash
- The names of their insurance providers and policy numbers
- The full names, addresses and telephone numbers of any witnesses
After documenting the scene and obtaining contact information from the other parties in the accident, leave the scene if it is safe to do so and if your vehicle is in drivable condition.
Notifying your auto insurance company
Next, you should contact your auto insurance company to report the accident, whether or not you plan to file a claim for damage. Again this just helps to cover all the bases should something go awry down the line.
Underinsured and uninsured drivers are common in the States?
Underinsured and uninsured drivers in the U.S. pose significant risks, especially in states with low minimum insurance requirements. Many drivers either lack adequate coverage or have no insurance at all, leaving accident victims potentially without sufficient compensation for damages, injuries, or losses after an accident involving such drivers.
For instance, as of 2019, Florida ranked among the worst U.S. states for uninsured drivers, with around 20% of motorists lacking any insurance coverage. Additionally, Florida generally does not require vehicles to have bodily injury liability coverage, which increases the likelihood that the at-fault driver will have little or no insurance to cover your injuries and losses. In such cases, your Canadian auto insurance policy should offer protection. If you or your passengers are injured in an accident involving an uninsured vehicle, your Accident Benefits coverage — which is mandatory in all provinces except Newfoundland & Labrador — will typically provide coverage. If the uninsured, underinsured, or unidentified third party is determined to be at fault and injuries are sustained, you may also have access to additional coverage through the Family Protection Endorsement (except in Quebec).
It is advisable to have at least $1,000,000 in liability coverage — and preferably $2,000,000 — if you plan to drive in the States.
Travel insurance is a must
Many do not realize that provincial health-care plans will cap out at $100 per day of coverage for a hospitalization and only provide for $50 a day for outpatient services when abroad. Especially in the U.S., this is simply not enough.
Emergency medical travel insurance is available for all ages, and covers for:
- Doctor’s services
- Ambulance services
- X-rays
- Diagnostic and lab tests
- Prescription medication
- Medical supplies
- Emergency dental services
- Physiotherapy
- Hospital allowances
- Emergency air transportation
Travel insurance can also include a rental car damage waiver, which will give you the same protection as the rental car company at a fraction of the cost. Paying less money up front leaves you with more money to spend at your destination.
Be aware: Your auto insurance may go up
Unfortunately, nearly all accidents will result in an increase in your auto insurance rates (even in a rental vehicle) unless you have accident forgiveness included in your coverage and this is your first accident. If you find your rates have become untenable, contact us at Lane’s Insurance. As brokers we are able to compare policies from several different companies to find you the best coverage at the lowest rate. In short, we do the shopping for you. Call us at our Calgary, Edmonton, Banff and Alberta offices.
