Can You Buy a Car Without a License in Ontario?

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Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated on August 5, 2024

Visit author page
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated August 5, 2024

Visit author page

4 minute read

Article Contents

In Ontario, having a car is not only a convenience but can also be a necessity, especially if your daily commute spans large distances. But can you buy a car without a license in Canada? Is a G1 license enough to purchase a vehicle? Read on to find out the conditions and restrictions to buying a car without a license in Ontario.

Buying a Car Without a License at a Glance

  • There are significant hurdles and limitations to buying a car without a license in Canada.
  • You can buy a car with just a G1 license, but you will need to be added to someone else’s car insurance policy before you can purchase one.
  • While driving with a G1 license, you need to be aware of the restrictions that apply and follow them strictly.
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Can You Buy a Car Without a License in Canada?

Technically, buying a car without a license in Canada is possible. However, it comes with significant limitations and difficulties. When you’re buying a vehicle in Canada, you need to have a valid license and car insurance policy. But if you don’t have these things, you can be a co-signer of a vehicle lease where a licensed family member or friend is the listed driver of the vehicle itself.

Before you can buy a vehicle, you will need an auto insurance policy, which you will need a valid driver’s license to acquire. So while you can buy a car without a license, you will need to have a licensed driver involved in the purchasing and operation of the vehicle.

Requirements to Buy a Car in Canada

Before you can complete a vehicle purchase in Canada, you need to have the following documents as requirements:

A valid Canadian driver’s license:

While some provinces will allow you to purchase a car without a valid driver’s license, Ontario does require one. Check your local laws to see whether you need a license to purchase a vehicle. If you’re an immigrant to Canada with a valid license from another country, you can exchange it for a Canadian driver’s license. To do this, you’ll need to provide evidence of two years of driving experience and proof of your right to stay in Canada.

A valid car insurance policy:

In Canada, you need to have a third-party auto insurance policy before you can legally purchase or own a vehicle. Depending on the province you’re in, the required amount of insurance may vary. You will need a valid driver’s license before you can take out auto insurance.

Your vehicle registration:

When you buy a car, you need to register it before you can officially own the vehicle. To complete a vehicle registration, you need to present documents like your driver’s license, proof of insurance, a certificate of sale, and the title to the vehicle. You will also need some other information such as the license plate number and odometer reading, which will be provided to you if you bought your car from a dealership.

Can You Buy a Car With a G1 License?

You can legally buy a car with a G1 license, as there is no law that prevents you from doing so. However, even if you buy a car with a G1 license, you still need to consider some factors before you can legally drive the vehicle:

Mandated Insurance:

Before you can drive, you need to be covered by an auto insurance policy. While G1 licensed drivers can’t take out an insurance policy on their own, they can be added onto another person’s policy, such as a family member or spouse. Keep in mind that adding another driver to an existing policy will raise the annual insurance premium for the policyholder.

Vehicle Identification:

After buying your vehicle, you need to understand your VIN number, the unique identifier that serves as a sort of fingerprint for your car.

Driving Restrictions:

When driving a vehicle with a G1 license, you need to follow the restrictions set even if you’re the owner of the vehicle.

Restrictions of a G1 License

A G1 license, also known as a student learner’s permit, is the first stage of the graduated licensing system in Ontario. When you have a G1 license, there are quite a few restrictions you need to keep in mind while driving a vehicle.

  • All passengers in the car must be properly wearing a functional seatbelt.
  • Your blood alcohol level must be zero while driving.
  • You’re not allowed to drive between 12 AM and 5 AM.
  • You’re not allowed to drive on a 400 series highway, except if you have a licensed driving instructor with you in the front seat.
  • You need to be accompanied by a licensed driver with at least four years of driving experience and a blood alcohol level of less than .05.
Things to Know About the G1 License

Understanding Auto Insurance

Canadian law states that you can’t legally drive a car without an auto insurance policy. Understanding why car insurance is mandatory is important, and you need to be aware of the following:

Know the difference between collision coverage, comprehensive coverage, specified perils coverage, and all perils coverage. Understanding exactly what your insurance policy covers is crucial.

Know how much you’re paying for your car insurance, whether you pay it monthly or yearly, and what factors affect your insurance rates.

Familiarize yourself with the claiming process, what to do when you get into an accident, and how much your car insurance deductible is.

In case you’re found at fault for an accident, know what you’re responsible for.

Graduating From a G1 to a G2 License

Getting your G1 license is the first step to becoming an established driver in Ontario. After the G1 license, you graduate to the G2 license, and then the G license after that. To graduate to the G2 license, you need to pass a road test that checks your driving skills such as parallel parking, 3-point turning, lane changing, stopping, and knowledge of road signs. You can only take the road test once you’ve been holding the G1 license for 12 months, shortened to only eight months if you take a driver education course approved by the government.

Key Advice from MyChoice

  • Understand the terms and coverage of your car insurance policy, especially when driving with a G1 license.
  • When you have a G1 license, you need to be added to someone else’s auto insurance policy, which will raise the insurance premium for that policyholder.

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