How vehicle recalls impact your auto insurance in Canada

By: Mark Gregorski and Aya Alhakim on June 30, 2026

QUICK TAKEAWAYS:

A vehicle recall typically won’t increase your auto insurance premium because recalls are the manufacturer’s responsibility, not the driver’s.
Manufacturers are legally required to notify vehicle owners of safety defects and provide repairs at no cost under Canadian regulations.
Ignoring a recall can create insurance complications if the unrepaired defect contributes to a collision or loss.
In some cases, an insurance claim could be denied due to negligence if you continue driving a recalled vehicle despite known safety risks.
Used-car owners should verify recalls independently, as manufacturers may only have the previous owner’s contact information on file.

Updated on June 30, 2026 by Aya Al-Hakim | Written originally by Mark Gregorski on Sep. 19, 2024

A vehicle recall usually won't increase your auto insurance premium in Canada. However, failing to address a recall could affect an insurance claim if the unrepaired defect contributes to an accident.

Vehicle recalls are issued when an automaker identifies a safety or performance issue that requires repair. Understanding how recalls work and what happens if you ignore one can help protect both your safety and your insurance coverage.

In this guide, we'll explain how vehicle recalls affect auto insurance, how to check whether your vehicle has an open recall, and what to do next.

What are vehicle recalls, and why do they matter?

A vehicle recall is an action taken by manufacturers to address a faulty component that affects its performance or safety. Upon discovering the defect, the manufacturer first informs Transport Canada. Then, they notify affected drivers, describing the issue and how to fix it. For example, as of June 2026, a recall, affecting 16,208 Ford vehicles, has been issued across Canada due to potential safety risks.

In Canada, manufacturers must comply with safety standards under the Motor Vehicle Safety Act to ensure their vehicles are safe to drive. They must legally notify car owners of a recall within 60 days of identifying the defect.

In rare cases, Transport Canada may take the lead in advising drivers of a safety defect through a news release when the manufacturer refuses to send a recall notice. Typically, this occurs when it uncovers an issue that severely threatens public safety.

If your car is subject to a recall, take corrective action as soon as you can. Driving a hazardous vehicle endangers not only you, but your passengers and other drivers on the road. It can also have negative consequences for your auto insurance.

How does a vehicle recall affect your auto insurance?

According to Andrew Bartucci, director of external communications at Insurance Bureau in Canada (IBC) a recall won't impact your car insurance rate. This is because any faulty components affecting your car stems from the manufacturer, who is legally obliged to fix them.

Since recalls don't influence your risk level as a driver, your insurance provider won't penalize you by hiking your premium. When pricing their policies, car insurance companies may account for safety defects, so your premium may gradually rise. However, this is rare, only occurring in cases where a vehicle's recall has known long-term safety repercussions.

In the case that a driver ignores a recall, and it leads to an accident, the recall and the circumstance of the incident makes determining your fault a little less simple.

“A few different things could happen,” Bartucci says. “You could be considered at fault for a collision and have it on your insurance record, which could influence future premiums.”

If a recall renders your vehicle undrivable and you ignore it and eventually get into an accident, your claim could be denied due to negligence.

Additionally, if the vehicle causes damage to someone else's property, such as a fire damaging a parking garage, you may be liable for the resulting damages.

How to find out if there's a recall on your vehicle

If a recall is issued for your car, the manufacturer will send you a written notice through the mail (a good reason to keep your contact details updated!). When moving to a new address, inform the manufacturer of the change by calling their customer service department.

Finding out about a recall on your vehicle can be more challenging if you purchased a used car. The manufacturer may not have your contact details in their database—only that of the previous owner.

However, you can visit Transport Canada's Motor Vehicle Safety Recalls Database to learn if your second-hand car has been recalled. All you need to do is enter the vehicle's make, model, and year.

How can I check if my vehicle has an open recall?

Method	Information needed	Best for
Manufacturer recall notice	Current mailing address on file	Owners who purchased their vehicle new
Transport Canada Recall Database	Vehicle make, model, and year	Checking recalls on new and used vehicles
Carfax Recall Check	Vehicle Identification Number (VIN)	Used-car buyers researching a vehicle's history
Manufacturer website	VIN or vehicle details	Confirming recalls directly with the automaker
Insurance provider notifications	Active policy with a participating insurer	Receiving supplementary recall alerts

You can also subscribe to Transport Canada's news feed to obtain up-to-the-minute news about recalls and review open and closed investigations.

Regardless of whether you own a new or used car, always register it with the manufacturer using your current contact details. That way, you won't miss any recall notices.

What to do if your vehicle has been recalled

The recall letter will explain the nature of the defect, the repairs needed, and any precautions to take while operating the vehicle. The manufacturer bears the total cost of getting your car road-ready again.

Sometimes, you can resolve the issue yourself, as in the case of a software update for high-tech vehicles, such as Tesla models. However, complex repairs require a visit to a dealership or auto shop.

In the latter case, inquire how long it will take to correct the issue. Delays may happen due to extensive work or part shortages. If faced with a long wait, you may have to arrange alternative transportation.

Check with the automaker for a complimentary rental or review your insurance policy for rental coverage options.

The bottom line on vehicle recalls in Canada

In Canada, manufacturers must advise drivers of performance and safety issues affecting their vehicles in Canada. However, as a driver, it's your responsibility to take the necessary steps to get them fixed.

Disregarding recalls while getting behind the wheel can lead to serious injury for yourself and others. It can also result in your insurance provider rejecting your claim following an accident, which can prove costly.

The good news is that a recall itself won't increase your insurance premium, and your policy will remain intact if you comply and get your car repaired.