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Don't know too much about the insurance question although in PA (where I am importing my Volvo from) you must have a PA license and a PA residence to get PA insurance. Re the importing - have you phoned the Registrar of Imported Vehicles in Canada? Do this first to make sure that the Volvo you are bringing back up can be certified here. There are two aspects to the certification - federal and provincial. You will have to pay the federal certification fee at the border, show them the bill of sale, have a recall certification letter from Volvo on their letterhead and make sure the original VIN plate is on the car along with a sticker (usually on the driver's side door panel although I found mine on the driver's side passenger door panel) which details what year the car was manufactured and to what safety standards.
In Ontario you then have 45 days to get the car inspected - with the 2001 V70 which I have this probably only means a bilingual airbag label (although the Volvo dealer here tried to claim I would need $3000 worth of work to get the car to meet Ontario standards).
I've tried to trade the car in here so that I wouldn't have to do all the work (too many other complications in my life right now) but, despite the fact that the border is right next door, dealers here want a chunk of money for handling it all. I've had to bite the bullet and do the licensing and retrofitting on my own.
Good luck!
fjdale
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