Auto insurance

Will buying an “as is” vehicle affect your car insurance rate?

The designation may not matter, but undisclosed damage can cost you dearly when it comes time to make a claim

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Whether you’re buying from a private seller or a used car dealership, when a vehicle is listed “as is” you are opening yourself up to many potential expenses that you may not even have yet aware.

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J“As Is” means the vehicle is sold in the condition you find it on the lot, with all its problems, whether known or unknown.

From undisclosed accident history to privileges (money still owed on the vehicle), there is a lot of research you should do as a buyer to make sure you are not taken to the cleaners.

One thing you will need when buying a car is insurance coverage. When it comes to secure car insurance blanket for one as if» vehicle, you may be wondering: will this name bother your insurance company? Do you have to tell them that you bought the vehicle “as is”? And could this affect your premium?

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Does the purchase of a as if“vehicle affect your car insurance rates?

According to Anne Marie Thomas, director of consumer and industry relations at the Insurance Bureau of Canada, buying a car as if” will not affect your insurance premium.

This is not a question that is asked on the auto insurance application,” she said.

However, adds Thomas, Anyone who buys a car, be it ‘as if‘ or not, should be aware that if there is previous damage to the vehicle that has not been repaired, this information should be passed on to the insurance company. And that is a question asked on the car insurance application.

You have to report unrepaired damage because if you are involved in an accident, the insurance company will only pay repairs for damage that occurred during the accident, not damage prior to owning the vehicle,” says Thomas.

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If the insurance company cannot determine current damage from previous damage, they may not pay your claim, so it is important to inform them accurately and honestly at the time of vehicle purchase.

What to look for when buying a as if” vehicle

If you live in Ontario, you can protect yourself when buying a vehicle in as if” condition by asking the seller for the Used Vehicle Information Package (UVIP).

The UVIP is specific to Ontario, but other provinces have their own equivalent, such as the vehicle history report in British Columbia.

The UVIP contains a complete history of the car in Ontario, including:

  • Vehicle details
  • Vehicle information attached to the plate number
  • Whether it was damaged or not
  • Ontario vehicle registration history including all current and previous owners with city of residence and odometer reading
  • Vehicle lien information
  • The condition of the vehicle, including whether it is mechanically unfit or has not received Safety Standards Certificate

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Keep in mind that when buying from a private seller, there is no guarantee that repairs have been completed correctly. This is one of the advantages of buying a used car through a dealer – they will often carry out any necessary repairs before selling the vehicle, although you are still technically buying the vehicle in as ifcondition. You can also have a mechanic inspect the vehicle before signing on the dotted line.

It is important to understand that when purchasing a vehicle “as is” there is no warranty or guarantee of quality offered – although a A Certified Pre-Owned vehicle from a dealership sometimes comes with additional manufacturer warranties.

When buying a vehicle as is”, you are responsible for any issues with the car after the sale is complete. Often, a seller lists the vehicle in as if” condition as it needs some work. This could give you bargaining power when it comes to negotiating a lower price. If you don’t mind putting a little work into the vehicle and it has an accident-free history, it could end up in your favor.

But again: when buying a car as ifshould not affect your insurance premium, it is important to report any previous unrepaired damage to your insurance company to ensure you have coverage in the event of a future claim. is a free, independent rate comparison website that allows Canadians to compare rates for various financial products, such as home and auto insurance, mortgages and credit cards.


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