Running a car in Canada – an overseas buyers’ guide

Once you’ve made the move, you will quickly realise that running a car in Canada becomes part of everyday life – especially outside the main city centres where distances are greater and public transport is limited.

When you own property in Canada, a car quickly shifts from being a convenience to a necessity. Outside downtown cores such as Toronto, Vancouver or Montreal, you will find that daily life – food shopping, medical appointments, school runs and weekend trips to the lake – depends on having your own vehicle. Here is what you need to know about running a car in Canada today, with up-to-date costs and rules for 2026.

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The real cost of running a car in Canada

If you are used to UK motoring costs, you may find some savings – but it depends on where you buy and what you drive. There is no annual road tax in Canada in the way UK drivers pay Vehicle Excise Duty. Instead, you pay registration and licensing fees at provincial level.

Fuel prices remain lower than in the UK, though they vary widely between provinces. Natural Resources Canada publishes a weekly fuel price report showing the latest average petrol prices across the country. Prices vary considerably between provinces – for example, you will typically pay a different rate in Alberta than in British Columbia – so it is worth checking the current provincial average before setting your budget.

To put ownership into context, Statistics Canada reports that private transportation is one of the largest components of household expenditure, covering fuel, insurance, maintenance and vehicle purchases. If you are relocating full-time rather than using your property as a holiday home, this is a significant part of your monthly outgoings.

You can use the Canadian Automobile Association cost calculator to estimate annual ownership costs based on vehicle type and distance driven. This is particularly useful if you are deciding between a petrol SUV for rural Ontario or a smaller hybrid for Nova Scotia.

Car insurance in Canada

Car insurance is compulsory in every province and territory. At a minimum, you must carry third-party liability cover. The required minimum liability varies by province. For example, Ontario requires at least $200,000 CAD in third-party liability cover under provincial law, although most drivers opt for $1m CAD or more for peace of mind. In Quebec, the minimum civil liability insurance required is $50,000 CAD.

Insurance systems differ by province. British Columbia, Manitoba and Saskatchewan operate public insurance models, while provinces such as Alberta and Ontario use private insurers. Premiums vary significantly – urban drivers in Toronto typically pay more than rural drivers in Prince Edward Island.

When you move from the UK, insurers may request a letter of no claims history from your British provider. Providing proof of a clean driving record can help reduce premiums.

Is there an MOT in Canada?

There is no direct equivalent of the UK’s annual MOT across Canada. Vehicle inspections are regulated at provincial level and the rules depend on where you live.

In Ontario, for example, a Safety Standards Certificate is required when you transfer ownership of a used vehicle, but not annually for private passenger cars. Emissions testing under the former Drive Clean programme has been phased out for most light-duty vehicles.

Other provinces have periodic inspection requirements. Nova Scotia requires regular motor vehicle inspections, typically every two years. If you are buying a used car, always check the provincial inspection regime.

Driving rules you will notice immediately

The most obvious change is that you drive on the right-hand side of the road. If you are spending extended periods at your Canadian home, this becomes second nature surprisingly quickly.

There are also some practical differences you should be aware of:

You can usually turn right on a red light after coming to a complete stop, unless a sign states otherwise. This rule applies in most provinces, though on-island Montreal prohibits right turns on red.

Some traffic lights display a flashing green signal in certain provinces, which can indicate pedestrian-controlled crossings or an advanced green for one direction of traffic depending on location.

Speed limits are posted in kilometres per hour, not miles per hour. On major highways, limits commonly range between 100 km/h and 110 km/h, depending on the province.

Winter driving is another consideration. In Quebec, winter tyres are mandatory between 1 December and 15 March for passenger vehicles registered in the province. Even where not legally required, they are strongly recommended in snowy regions such as Alberta or Ontario cottage country.

Can a non-resident own a car in Canada?

Yes, a non-resident can own a car in Canada, but registration and insurance requirements vary by province.

Generally, you must provide a local address in the province where the vehicle will be registered and obtain valid insurance. If you are spending part of the year at your Canadian property, you may need a provincial driver’s licence after a certain period of residence. For example, Ontario requires new residents to obtain an Ontario driver’s licence within 60 days of taking up residence.

If you remain a non-resident visitor, you can typically drive using a valid UK licence for a limited period, but you should confirm the specific provincial rules before purchasing a vehicle.

What will happen to petrol and diesel cars after 2035?

The Canadian government previously set a target for all new light-duty vehicles to be zero-emission by 2035. In early 2026, however, the binding sales mandate was repealed and replaced with stricter greenhouse gas emissions standards. The current position is an aspirational target of 75–90% zero-emission vehicle sales by 2035–2040 rather than a legal requirement.

In practical terms, this means petrol and diesel cars are likely to remain available for purchase beyond 2035, although they may be subject to tighter efficiency rules and potentially higher emissions-related costs over time. If you are buying property in Canada as a long-term base, it is sensible to keep an eye on how charging infrastructure is developing in your chosen province, particularly in more remote areas.

Natural Resources Canada tracks and supports the rollout of electric vehicle charging points nationwide, with coverage continuing to expand along major highway routes.

Planning ahead as a property owner

When you buy in Canada, think about your lifestyle. If your home is in downtown Vancouver, you may manage with public transport and car-sharing schemes. If you are buying in rural Ontario, the Okanagan Valley or Nova Scotia’s South Shore, a reliable vehicle is part of daily life.

Factor in insurance, fuel, winter tyres and provincial inspection rules as part of your overall relocation budget. Running a car in Canada is often more affordable than in the UK, but the distances you drive may be far greater. Build that into your financial planning so there are no surprises once you collect the keys to your new home.

Frequently asked questions about running a car in Canada