I moved to Canada recently. Before I moved here I put the title/registration of the car in my mother's name to avoid paying the 14% tax that would have been levied on the car. I also have the insurance through a company in the USA. Is this illegal if I claim that I am just borrowing the car or would this be a loophole in the law?
2006-07-08 19:05:01 · 3 answers · asked by Dante N 1 in Cars & Transportation ➔ Insurance & Registration
You have to be a US citizen (or at least a Cdn with a US work visa) to be in compliance with Canadian traffic laws. But if you have an accident with a major insurance claim, you can be sure your US insurance company will be trying hard to find every excuse they can to avoid paying the claim!
2006-07-08 19:10:18 · answer #1 · answered by minefinder 7 · 0⤊ 0⤋
What province are you in. Ontario gives you 60 days from taking up residence to obtain an Ontario Licence and Licence Plates. US Customs requires a special procedure to permanently remove a vehicle from the US. Technically your car is now in Canada illegally, and getting Canadian registration will be virtually impossible as you won't have the paperwork from US Customs and Canada Customs that you need for registration purposes. Your insurance could also be a problem, as Canada insures differently than the US, with the minimum liability coverage being $20,000, with most people having $1,000,000 coverage.
2006-07-11 13:35:55 · answer #2 · answered by Chris F 3 · 0⤊ 0⤋
Typical of most places once you are living there, you have 30,60,90 days to get a license and register the car in the province where you moved. Look up Ministry of Transportation Ontario or whatever province you're at. If you did get caught from an accident or ticket, it might not seem worth the risk.
I agree, the insurance company will claim fraud if they find out too, and not cover you. Might even put your mom in jeapardy as it is in her name, and most likely the insurance policy too.
2006-07-08 19:22:49 · answer #3 · answered by rkfire 3 · 0⤊ 0⤋