What happens if someone hits you and you don’t have insurance in Canada?
If you’re hit by another car in Canada and you don’t have insurance, you could find yourself in big trouble. First, driving without insurance is against the law, and you could end up paying significant fines, which vary depending on where you live.
For example, if you live in Ontario, you could face fines starting at $5,000 and up to $25,000 for your first offence. If you’re caught driving without insurance again, the fines range from $10,000 to $50,000. On top of that, your vehicle could be impounded for up to three months and you could lose your licence for up to one year.
Even if the accident wasn’t your fault, you’ll have to pay for any damage to your own car. If you’re found to be partly responsible for the accident, you could also need to pay for damages to the other car and any medical bills from the accident.
Plus, not having insurance means you won’t have any support from an insurance company when you’re trying to get compensation from the at-fault driver’s insurance. This can make it really hard to handle negotiations on your own. Also, depending on your location and the specifics of the accident, you might even lose your driver’s license. That’s why it’s important to always have at least the minimum required insurance to protect yourself financially and stay within the law.
Do I need car insurance if I don’t drive my car in Ontario?
Yes, in Ontario, you need to have insurance on your car even if you don’t drive it. By law, any vehicle registered to your name must be insured, even if it’s just sitting parked. This insurance must cover liability, accident benefits, and uninsured automobile coverage.
You may also want to consider having comprehensive insurance on your car insurance policy while your vehicle is sitting idle. While the risk of it being damaged in an accident is seemingly nonexistent, comprehensive insurance will protect your vehicle from all other non-collision-related accidents, such as theft, vandalism, and natural disasters.
For example, if a large branch were to fall on top of your vehicle during one of Ontario’s strong summer storms, comprehensive coverage would cover the cost of repairs or even the replacement of your vehicle. The same goes for if someone were to break into your idle vehicle and steal it.
If the reason you’re looking to get rid of your car insurance is to save money, there are other ways to help you lower your costs. For example, you could ask about a bundling discount for your home and car insurance, and you could consider lowering your coverage limits while it remains idle.
Nevertheless, if you’re sure you won’t use your car for a long time, you could consider cancelling its registration and keeping it off the road. This would mean you don’t have to insure it while it’s not in use. Just remember, according to Ontario laws, if there’s any chance you might drive the car, even just once in a while, it needs to be registered and insured.
Car insurance in Ontario is much more than a “nice to have.” It’s legally required for you to drive in compliance with Ontario’s auto insurance law. It’s mandatory for every driver in Ontario to have valid car insurance. Failure to have insurance can result in costly fines, license suspensions, and possibly even having your vehicle impounded.
Why is car insurance mandatory?
The concept of the mandatory auto insurance law protects all individuals that are involved in a motor vehicle accident, some of which may otherwise not be able to afford costs associated with healthcare and rehabilitation. Furthermore, the victims of automobile accidents would be very unlikely to see much compensation from the drivers that are deemed to be at fault in many cases. This is essentially how car insurance works.
Although car insurance is compulsory across Canada, each province has established provincial minimum coverage requirements. In Ontario, for example, the minimum amount of third-party liability coverage required is $200,000.
However, it’s important to keep in mind that given the number of multi-million dollar lawsuits the minimum legal requirement is not recommended. It’s a good idea to discuss with your broker an appropriate liability limit for you considering your personal circumstances.
When did car insurance become mandatory?
The Compulsory Automobile Insurance Act was introduced in Ontario in 1990. This auto insurance law established the the bare-minimum levels of car insurance for drivers on the road so that people wouldn’t be left without a means to recover and support themselves if another driver involved them in an accident.
There have been several amendments to the Act since then, but the core principles remain the same.
Everything else about Ontario’s auto insurance law
Accident benefit coverage is a part of that required coverage by law. This provides supplementary care for you if you’re injured in an accident no matter who’s at fault, including:
- Medical care
- Rehabilitation
- Attendant care
- Income replacement
Even if you’re involved in an accident with an unidentified hit and run driver—or worse yet, you’re involved in an accident with an uninsured driver—your mandatory insurance coverage will protect you.
In addition to the mandatory coverage, there are several other options that might be of interest to you. You can insure your vehicle to be repaired in the event of at-fault accidents, fire, theft, and vandalism. Also, you can purchase additional features such as accident protection or vehicle depreciation waivers that can provide you with additional benefits if you were to make a claim.
Details required for car insurance
If you’re about to start driving, here’s what you’ll need to buy your insurance policy:
- Driver’s license
- Current insurance company (if you have one)
- Previous tickets, even if you earned them while on a learner’s permit
- Previous claims, even if you earned them while on a learner’s permit
- Your vehicle information
Car insurance has been made mandatory for the protection of all of us. Just remember that there are as many important optional features to your policy as the mandatory ones so it’s important to know what’s right for you.
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