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Auto Insurance Q & A – Is It Possible for Two People to Own One Vehicle in Ontario?

Joint ownership car

As we all know, it’s getting more and more expensive to own a car these days. From rising auto insurance costs (especially here in Ontario, right?) to gas prices that just don’t seem to stop climbing, not to mention the actual purchase and maintenance of a vehicle, owning a car is no walk in the park financially. For this reason, many people decide to share the ownership of a vehicle. And a common question we get here at Insurance Buddy is whether it’s possible for more than one individual to own one car in the province of Ontario.

And the answer to this question is YES! Two drivers can be registered to own one vehicle.

– With joint ownership, the two names will appear on the official green paper permit issued by the province of Ontario.

– This vehicle permit must be carried by the drivers when using the car.

– When there is joint ownership of a vehicle, all paperwork related to the car, such as transferring ownership or selling the vehicle, will need to be signed by all parties.

Auto insurance and co-ownership

Now that you know that two drivers can be listed as owners for one vehicle, the next logical consideration is the insurance on the car in question. If you’re wondering how that works, essentially when two owners are listed they are both evaluated in terms of insurance coverage. So if one has a terrible driving record, or is a young driver with little driving experience, this will affect the insurance premiums, regardless of how highly esteemed the other driver might be. The insurance provider will look at both drivers, not just the one with the best record.

What if only one of the owners will be driving the car? It is possible to designate that person as the sole driver of the car and it will be that person’s record and history that will determine the auto insurance rates for the vehicle. In fact, there must always be a primary driver listed on an auto insurance policy. This is the driver that uses the car the most and it is this driver’s record and history that has the most sway on the insurance rates. Learn more about that here

For more information on owning and driving a vehicle in Ontario, check out the Ontario Ministry of Transportation’s vehicle page here.

If you’re looking to transfer the ownership of a vehicle to a family member, click here.

Whether you’re looking to share the costs of having a car, or trying to qualify for a car loan, there are instances where it makes sense to have joint ownership of one vehicle. If you have any questions about joint ownership of vehicles in Ontario and how this may affect your insurance rates, reach out to one of our insurance experts to get the help you need. If you’re looking for a quote on auto insurance, click here.

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We have provided the definitions in this blog post for general information purposes only. They are not meant to be complete descriptions to cover any and all terms, conditions and exclusions that are found in different insurance policies. If there is any inconsistency between this information and the definitions in your policy, it is your policy that governs. Contact your insurance broker if you have any questions or need any clarification about your particular policy and the definitions therein.

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