In Canada, it’s illegal to drive or operate a vehicle without having a valid insurance policy. However, it is not considered a criminal offence. Even though it doesn’t violate a law or give you a criminal record, it’s not without consequences. If you get caught driving without insurance, you can get into some serious trouble.
Driving without insurance puts you, your passengers, and other drivers on the road at risk. This law is in place to keep everyone on the road as safe as possible. Yes, you have to pay for car insurance coverage. However, this investment pays off in the long run. This guide will discuss what happens if you drive without car insurance and why you shouldn’t.
Driving without car insurance in Canada
Technically, you can drive a car without insurance in Canada, but should you? Driving without insurance isn’t considered a criminal offence. In other words, you won’t get a criminal record if caught driving without insurance, but do you need to have car insurance?
Even though nothing’s stopping you from driving without insurance, it’s still against the law. Instead of getting a criminal record, you will have to pay some hefty fines and will face other penalties in the future. This offence will go on your driving record and can place you in the “high risk” category with insurance companies. As a result, your car insurance premiums will be higher for a few years. Here's what you need to know about driving without car insurance in Canada:
If you are caught driving without auto insurance
If a police officer pulls you over and cannot provide your car insurance information, you may be charged. Offences the officer can charge you with include:
- Operating or allowing an uninsured motor vehicle to be operated
- Failure to show proof of car insurance upon a police officer’s request
Remember that you can still be charged with these offences even if you have valid car insurance. Charges can be laid if you don’t have your pink slip to provide proof of insurance. This is also the case if you’re late renewing your car insurance policy.
Consequences of driving without insurance
If you fail to provide proof of insurance, you will often be subject to fines and penalties. Regardless of if it’s your first offence or not, you will be held responsible. You can face the following consequences:
- Hefty fines
- Driver’s licence suspension for a minimum of 30 days and up to one year
- Having your vehicle impounded for a maximum of three months
These charges can make it more difficult to find an insurance company that will provide you with an auto insurance policy. Convicted drivers will usually only be able to get a car insurance policy through “high-risk” or facility insurance companies that specialize in providing coverage to customers with less than satisfactory driving records. Unfortunately, these insurance providers charge high premium rates. Depending on your driving record and the type of vehicle you drive, rates can climb as high as $10,000 annually.
The amount you can be fined for driving without insurance
The amount of money you can be fined for driving without insurance often varies. It usually comes down to if it’s your first conviction and the nature of the offence. For example, you can face additional charges if you are driving with a suspended licence. Depending on the circumstances, it can range from a few hundred to a few thousand dollars.
It’s important to understand the repercussions of driving without insurance. Finding an insurance company and asking a broker to help compare car insurance quotes can remedy your issue of being without insurance. With that said, getting into a car accident without car insurance can have serious consequences — this is also true if the person who hits you doesn’t have auto insurance coverage. We will explore those scenarios next.
Getting into an accident without having car insurance
If you get into a car accident and don’t have adequate insurance coverage, you can be held personally responsible for the costs of damages to both vehicles. These costs can add up. Damages can include repairs for your car, repairs for the other vehicle involved and any medical bills associated with the accident.
There are several fines and penalties associated with driving without insurance. In more severe cases, a lawsuit can be filed. The other driver or their insurance company can sue you for the accident if you do not have a valid insurance policy. This is because you are putting them and other drivers on the road at a greater risk. We will discuss the consequences of getting into an accident without auto insurance below:
If someone driving without insurance hits you
Getting into an accident with an uninsured vehicle is unfortunate. However, it’s not something you have to worry about if you have your own auto insurance policy. This ensures you are protected in this situation because there is a mandatory type of coverage on your policy called: “Uninsured Automobile.” This coverage allows your insurance company to pay for damages, injuries and other expenses associated with the accident.
Having vehicle insurance protects you if you get into an accident. Not having your own insurance policy is a serious provincial offence that can lead to significant fines and other financial repercussions, such as paying for damages and medical expenses following an accident. That’s why you need to find an insurance provider that will offer you a policy that suits your needs. A broker can also help you gather the documents you need for car insurance.
Connect with an insurance company by reaching out to BrokerLink today!
Auto insurance is mandatory across Canada. Not only does it protect you in the event of an accident, but it can also prevent fines, penalties and potential legal action. Driving without insurance puts you and others on the road at risk, and it’s not worth it.
With that said, there are many types of auto insurance coverage available. Your insurance broker can let you know which ones are mandatory and which are recommended as precautions. These include:
Are you looking for an insurance company that will provide you with a policy that suits your needs? You will need an insurance broker to help you shop around for various types of coverage, including no-fault insurance. Contact a BrokerLink broker for prompt and reliable service today.
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Driving without insurance FAQs
Can I have a car without insurance and not drive it?
If you have a car that just sits in your garage, you technically do not need vehicle insurance. However, the minute the vehicle is off your private property and on a public road or parking lot, you need a valid car insurance policy. If you want to move the vehicle without insuring it, you must find a way to do so without driving it, such as loading it onto a truck. You will also need proof of insurance to get licence plates.
Is driving without insurance a criminal offence?
Driving without insurance is not a criminal offence. It will not go on your criminal record. However, driving without insurance is still a severe offence. You could face heavy fines and possibly suspend your driver’s license if caught. It will also affect your ability to obtain insurance in the future.
What happens if you crash without insurance?
If you crash your vehicle without vehicle insurance. you are responsible for covering the cost of all the damages. You could also face serious consequences for driving without insurance, such as fines and the suspension of your license. Your ability to obtain insurance in the future will also be affected.
Can I drive an uninsured car if I have insurance?
You cannot drive an uninsured car, even with your own insurance. Think of it this way: the insurance follows the car, not the driver.
If driving a car without insurance is not a criminal offence, why is it illegal?
Illegal activities are punishable by law and can include violations of civil statutes such as the Compulsory Automobile Insurance Act, which imposes civil sanctions for uninsured drivers. As such, driving a car without insurance is an illegal act.
Do I still need to get car insurance if I lease my vehicle?
In most cases, your lease agreement may require you to get coverage higher than mandatory for your particular province. For example, the mandatory third-party liability coverage in Ontario is $200,000. The leasing company may require you to have $1 million.
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