Some people may wonder if it’s worth the risk to drive uninsured to save money. However, Ontario and all parts of Canada have strict auto insurance rules. When it comes down to it, these regulations are designed to keep you safe on the road. So, what is the penalty for driving without insurance in Ontario? This guide reviews the consequences and explains why having a policy is essential.
Why Do You Need Car Insurance in Ontario?
Car insurance protects you in an accident, whether there are autobody damages or injuries to you or another person. It provides you peace of mind knowing that, in most cases, you won’t need to pay out of pocket if an unforeseeable event happens on the road. Expenses for car repairs or hospital bills can add up, and this can be a significant burden to shoulder alone.
Compulsory Automobile Insurance Act
The Compulsory Automobile Insurance Act (CAIA) is an Ontario law that all drivers must follow. The main detail impacting drivers in the province is that they must have their motor vehicles covered with liability insurance. This is also mandatory for Ontarians with a license before they can operate any vehicle.
What are the Consequences of Driving Without Car Insurance?
Suppose you’re driving and get pulled over. You’re responsible for proving to the police that you have valid insurance and driver’s license. However, if you cannot present both of these pieces of documentation, it could result in severe consequences. For example:
1. Fines
Driving without insurance in Ontario is not a criminal offence. However, there are significant fines that impact the driver. The penalties you face depend on your history and whether you have other driving offences.
- The fines for the first offence begin at $5,000, and you may pay up to $25,000.
- If caught without insurance for a second offence, the fine could go up to $50,000.
The Provincial Offence Act may add a 25% surcharge to your fine.
2. License Suspension
Many of us use our vehicles to help us in our day-to-day lives, whether we need to commute to work, run errands, or enjoy a road trip. If caught without car insurance in Ontario, you may face a driver’s license suspension for up to one year.
3. Your Car Could Be Impounded
If you’re pulled over by a police officer while driving without insurance, they may impound your vehicle for up to three months. Paying to get your vehicle out of the impound can be expensive, and the fees usually increase daily.
4. Tarnished Driving Record
Caught driving without insurance shows on your driving record, also known as a driver’s abstract. This document reveals driving infractions or charges, including instances of driving without insurance, for approximately the next three years.
5. Increased Insurance Premiums
If you’ve been caught driving without insurance, it can be significantly harder to find an insurer after the fact. As mentioned, this instance shows on your driver’s abstract, which is requested by insurance companies when they put together quotes and policies. Driving without insurance demonstrates to them that you may not follow the rules of the road and could result in a high-risk car insurance scenario. That means your premiums are typically more expensive and likely won’t be reduced for some time.
What to Look For in Car Insurance
If you’re a first-time vehicle owner and still need car insurance, there are a few things to note. Insurance providers decide your starting rate on multiple possible risk factors, including:
- What sort of car you drive; certain vehicles are more prone to theft than others or cost more to repair.
- Your neighbourhood, where you live and park your car.
- Who else may be driving the vehicle if you’re sharing the car with a partner
- Your insurance history; if you’re a first-time holder or have had continuous coverage
Deductibles and Coverage Limits
Other factors to consider are deductibles and coverage limits, which are essential if your car is involved in an accident.
- Deductibles: This is the amount you, as the driver, pay before the insurance covers the rest. (If your deductible is $500 and your repairs cost $5,000, you spend $500, and your insurance pays $4,500).
- Comprehensive Coverage: This protects your car from damage not caused by a collision, like theft, vandalism, or natural disasters (e.g., hail or falling trees).
- Collision Coverage: This covers damage to your car if you’re in an accident, whether you hit another vehicle or an object (like a tree or pole).
- Rental Car Coverage: helps pay for a rental if your car is in the shop after an accident (buy this before an accident happens).
- Waiver of Depreciation: protects the value of a new car if it’s totalled.
- Accident Forgiveness Endorsement: prevents your rates from increasing after your first at-fault accident.
Get the Best Deal on Your Auto Insurance
Don’t leave things up to chance. At Rowat Insurance, we’re here to protect you on the road by finding the best auto policies available for your unique needs — we’re on your side! Contact us today to learn more.
Frequently Asked Questions
What if I get into an accident without car insurance?
If you are in an accident without car insurance, you will face many challenges and consequences. Whether or not you were at fault, you would be required to pay for vehicle damages and medical expenses out of pocket without any support from insurance providers.
What if someone else drives my uninsured car and doesn’t have insurance?
If someone else drives your car without insurance, you, as the vehicle owner, can still be charged with allowing them to operate the motor vehicle without insurance. However, if you drive somebody else’s car and they are insured, their insurance policy can cover you as long as you have a valid driver’s license.
Can you be arrested for driving without insurance?
While driving without insurance is an offence under the CAIA, it isn’t a criminal offence. This means you won’t get arrested if caught driving without insurance unless you were involved in a crime, such as causing a car accident or distracted driving. However, the fines and license suspensions are serious consequences that must be taken seriously as they can negatively impact your financials and driving record.
Is Driving Without Insurance Common?
No, most drivers in Ontario are properly insured. However, there are enough uninsured motorists on the roads to pose a problem. If you’re in an accident with someone who doesn’t have insurance, you may need to take legal action to get the compensation you’re entitled to. If they don’t have any assets, you may need to go through your own insurance for compensation.