Driving without insurance in Ontario

Car insurance in Toronto and elsewhere in Ontario is a must. Why? It is legally required. This means that if you want to drive, you must purchase a valid car insurance policy that meets the minimum coverage requirements set by the provincial government.

Given that auto insurance is mandatory in Ontario, choosing to drive without it is illegal. If caught, especially if you are involved in an accident, you could face serious consequences. Continue reading to learn more about what will happen if you choose to drive without insurance in Ontario.

Can I drive without car insurance in Ontario?

No. Driving without car insurance is illegal in Ontario. Auto insurance coverage is compulsory for all drivers in Ontario. This means that if you intend to drive, you don’t have the option of whether to purchase car insurance or not. You must purchase it. Otherwise, you will be driving illegally and you run the risk of serious consequences, like fines and the impoundment of your vehicle.

Why do drivers need auto insurance in Ontario?

Now that you know that car insurance is mandatory in Ontario, you might be wondering why. The reason that car insurance is a legal requirement in Ontario and throughout Canada is to protect drivers from the financial ramifications of a collision or similar incident. In other words, the purpose of mandatory car insurance is to ensure that all motorists have some degree of financial security should they get into an accident.

The financial support that insurance offers can help a driver pay for everything from vehicle repairs and replacement costs to the cost of legal fees or medical expenses that may be associated with a collision. Thus, even though it might seem like car insurance is simply one more cost you must budget for, it can help protect you and other drivers on the road.

What are the consequences of driving without car insurance in Ontario?

It should first be noted that driving without car insurance in Ontario is not a criminal offence. Rather, it is an offence under the Compulsory Automobile Insurance Act of Ontario. As such, if you are caught driving uninsured, you will not face any criminal charges. That said, the consequences are still serious. A few of the main types of consequences you can face for driving without insurance in Ontario include:

Fines

One of the biggest consequences of driving without insurance is fines. You will likely have to pay a major fine if you are caught driving without car insurance. Ontario has some of the highest fines for uninsured driving. For example, for a first offence, you could receive a fine of anywhere between $5,000 and $25,000.

For a second offence, these minimums and maximums double, ranging between $10,000 and $50,000. Given the potential fine of tens of thousands of dollars, purchasing car insurance is clearly the more cost-effective option.

It is also worth noting that on top of any fines incurred, the driver will be required to pay a 25% surcharge fee according to the Provincial Offence Act.

The temporary suspension of your driver’s licence

Remember that driving is a privilege, not a right. Thus, if you abuse this privilege, such as by driving without car insurance, you will likely be penalized. Beyond fines, another penalty that may be incurred is the temporary suspension of your driver’s licence.

Driver’s licence suspensions for uninsured driving can be issued for a period of 30 days up to a full calendar year from the date of the event.

The impoundment of your vehicle

Your vehicle being impounded for up to three months is another potential consequence of driving without insurance in Ontario.

No financial support

Finally, one last consequence of driving without car insurance in Ontario is that you will not have any financial support should you find yourself in a car accident. With no insurance to help you cover the costs of the accident, such as medical fees, legal fees, and vehicle repair bills, you will be on the hook for paying for these costs entirely on your own. Depending on the severity of the accident, this can result in tens of thousands of dollars, if not more.

If I am caught driving without insurance, how will this impact my future car insurance?

The fines that you receive for driving without insurance coverage in Ontario are serious, and they can remain on a driver’s record for up to three years. This means that not only will you be strapped with a major fine, as well as potential other penalties, but you may also have to pay a higher premium for car insurance.

Insurance companies always look at a driver’s record when determining their rates. If your record contains infractions, like a driving without insurance charge, you will likely be charged more for insurance. In some cases, an insurance company may even refuse to issue you coverage altogether.

This is because an uninsured driving charge could be enough for an insurance provider to deem you a “high-risk” driver. High-risk drivers often have more trouble finding car insurance, and if they do find it, it almost always costs more.

What happens if I get into a collision without auto insurance?

Get into a collision and you do not have auto insurance. You will be on the hook for paying for the cost of the damages on your own - and we’re talking about the cost of the damages for yourself and your own vehicle as well as the other driver involved. This will be the case even if you were not at fault for the collision.

If the car accident caused bodily harm, then you may also be required to pay for medical expenses, like the cost of prescription medications, rehabilitation, or physical therapy.

Next, if you get into an at-fault accident, the other driver could end up filing a claim against you. Lawsuits aren’t cheap, and without third party liability car insurance, you would be forced to pay for all legal fees, including defence and settlement fees, on your own. Legal fees could run as high as hundreds of thousands of dollars depending on the incident.

Finally, on top of having to pay for various costs associated with the auto accident, you will also have to pay any fines incurred for getting caught driving without insurance, which is illegal.

What happens if I get into a collision with an uninsured driver?

If you get into a common car accident with an insured driver and you have car insurance in Ontario, then you will be covered. Specifically, it is the uninsured automobile insurance portion of your policy that will cover you.

This type of insurance is specifically designed to cover accidents with drivers who are uninsured, underinsured, or flee the scene of the accident.

On the other hand, if you get into a collision with an uninsured driver and you also do not have insurance, you will be required to pay for the cost of the damages out of pocket.

What happens if an uninsured driver flees the scene of an accident?

If you get into an accident with an uninsured driver who flees the scene of an accident, your uninsured automobile coverage will kick in. Fleeing the scene of an accident is never a good idea.

Not only is it irresponsible, but it is illegal and can result in serious penalties, including the loss of demerit points. You could even be charged under the Criminal Code of Canada or the Provincial Highway Act.

For example, in Ontario, drivers who are convicted of hit-and-runs can face fines from $200 to $2,000, up to seven demerit points, and jail time of up to five years.

In addition to all of these serious consequences, being convicted of fleeing the scene of an accident will instantly increase your risk as a driver, leading to a significant rise in your car insurance premium.

Some insurance companies might even cancel your coverage outright. Alternatively, if you didn’t have car insurance at the time of the hit and run, you can bet that it won’t be easy to find car insurance afterward.

Such convictions stay on a driver’s record for a minimum of three years in Ontario, which means that it will likely be difficult to obtain coverage during this time.

What required car insurance coverage looks like in Ontario

Now that you better understand the consequences that come with driving without insurance in Ontario, you likely understand just how important it is to have a valid policy at all times.

To give you an idea of what a valid car insurance policy looks like in Ontario, we’ve outlined the four mandatory types of auto insurance in the province.

Third party liability coverage

Ontario drivers must have $200,000 in liability car insurance at all times. This type of coverage comes into play if you get into an at-fault accident. Liability insurance will help pay for costs associated with the at-fault collision, ranging from medical fees and legal fees to vehicle repair bills.

Accident benefits coverage

Accident benefits coverage is another type of required coverage in Ontario. It aims to help drivers pay for the medical expenses that arise from an accident. For example, accident benefits can cover medical bills not covered by health insurance, such as the cost of physical therapy or rehabilitation. This type of coverage may also help pay for funeral fees or loss of income.

Direct compensation - property damage coverage

This mandatory coverage provides the policyholder compensation if their car is damaged in a collision, so long as the accident was not their fault. With direct compensation coverage, you can receive a payout directly from your insurance provider to help cover the cost of repairs.

Uninsured automobile coverage

Uninsured automobile coverage is the last type of mandatory car insurance coverage in Ontario. It can protect drivers who get into accidents with other motorists who are uninsured, underinsured, or who flee the scene of the collision and are therefore anonymous. This type of coverage can pay for vehicle repair bills, medical bills, and more.

Optional car insurance coverage in Ontario

In addition to the four mandatory coverage types listed above, there are several other optional coverages that drivers can choose to add to their policies. For extra protection, consider adding the following coverages to your Ontario car insurance plan:

Collision coverage

Collision car coverage will pay to have your vehicle repaired or replaced if it is severely damaged in an accident. Collision coverage can be claimed no matter if you caused the accident or not and no matter whether the accident was with another driver, animal, or grounded object.

Although usually optional, you might be obligated to add collision coverage to your Ontario car insurance policy if you lease or finance your vehicle.

Comprehensive coverage

Comprehensive car coverage, also known as parked car coverage, is another type of optional insurance. This coverage protects your car against damage or losses caused by insured perils. Insured perils vary but will be clearly stated in your policy.

Some of the most common insured perils include fire, theft, vandalism, falling and flying objects, explosions and riots, and weather-related events. As with collision coverage, comprehensive coverage can help pay to repair or replace your vehicle, and may be obligatory if you lease or finance your car.

Accident forgiveness coverage

One more type of optional car insurance coverage popular among drivers in Ontario is accident forgiveness. Accident forgiveness is additional coverage that can be added to your car insurance policy as an endorsement, to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim. Note: coverage and eligibility varies by province.

Waiver of depreciation

A waiver of depreciation is a rider or endorsement that can be added to your Ontario auto insurance policy for your brand new vehicle. If you choose to add this type of coverage, your insurer will cover the full value of your vehicle, without depreciation, if it is totalled and needs to be replaced.

Loss of use coverage

Loss of use coverage is another type of optional coverage that offers financial security in the event of a collision. If your car is damaged in an accident and needs to be repaired, loss of use coverage can pay for the cost of getting around during this time. For instance, if you choose to rent a car or hire taxis or ride shares, loss of use coverage can reimburse you.

Contact BrokerLink

If you want to learn more about the penalties that may come from uninsured driving in Ontario, get in touch with BrokerLink. Our insurance brokers know the ins and outs of Ontario car insurance requirements. We can explain what coverages are mandatory, how mandatory coverage protects you, and what consequences you may face for choosing to drive without a valid car insurance policy.

Further, as a full-service insurance brokerage, we offer free insurance quotes to all customers in Canada. Simply get in touch, request a free quote, and you will receive one in a matter of minutes. You can even request your free quote from the comfort of your own home using the online quote tool on our website. Once you receive your quote, you will get a realistic idea of how much car insurance in Ontario will cost you.

If you want tips on how to keep costs down, give BrokerLink a call. One of our licensed insurance advisors will be happy to offer tips and advice on ways to reduce your premium, such as by purchasing multiple auto insurance policies.

Get an auto insurance quote 1-866-724-2372

FAQs on driving without insurance in Ontario

How common is driving without car insurance in Ontario?

Given that car insurance is a legal requirement and the consequences for driving without insurance in Ontario are among the harshest in Canada, very few drivers choose to engage in uninsured driving.

Is uninsured driving a criminal offence in Ontario?

No. Uninsured driving is not a criminal offence in Ontario or anywhere else in Canada. Rather, it is an offence under the Compulsory Automobile Insurance Act of Ontario (CAIA).

For this reason, if you are caught driving without insurance, you will not be convicted of a crime, and nothing will end up on your criminal record. However, the penalties issued will appear on your driving record and can influence your ability to get car insurance in the future.

Can I lose my driver’s licence if I am caught driving without insurance?

If you are caught driving without insurance, you can temporarily lose your licence. Depending on the severity of the incident, your licence could be suspended for a period of 30 days up to one year.

Will I get demerit points if I am caught driving without auto insurance?

No. Drivers who are caught driving without car insurance will not get demerit points.

Can I own a car without insurance?

Yes, but only if you do not drive the car. If you drive the car, you will need to purchase a valid car insurance policy. It is worth noting that even if you do not drive the car and it remains in storage, purchasing auto insurance may still be worthwhile, especially comprehensive coverage, which can pay for damage or losses that may occur while it is parked or in storage.

How much will I be fined for driving without insurance in Ontario?

Ontario drivers can be fined between $5,000 and $25,000 for a first offence. Meanwhile, the fines are steeper if you are caught driving without insurance for a second or subsequent time. Fines for a second uninsured driving offence start at $10,000 and go up to $50,000.

What are the consequences of uninsured driving in Ontario other than fines?

The other consequences of uninsured driving in Ontario include the temporary suspension of your driver’s licence for up to 365 days, the impoundment of your vehicle for up to three months, and an extra surcharge on top of the fines issued. This surcharge usually amounts to 25% of the amount of your fine.

What types of car insurance are required in Ontario?

For your Ontario auto insurance policy to be valid, it must contain the following four coverage types: third party liability coverage, accident benefits coverage, direct compensation - property damage coverage, and uninsured automobile coverage.

While not required, extra protection, such as loss of use coverage, collision coverage, comprehensive coverage, and accident forgiveness coverage, may be worthwhile due to the additional financial security they provide.

If you have any questions, contact one of our local branches.