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5 minute read Published on Jan 8, 2026 by BrokerLink Communications
You've been hit by a driver who doesn't have insurance--what happens now? For many Canadian motorists, this isn't a hypothetical scenario; it's their reality. With approximately 1 in 7 drivers (14%) uninsured and thousands of hit-and-run accidents a year, driving without insurance is becoming a major issue in Canada. For example, in Ontario alone, 2,100 accidents annually involve uninsured drivers.
This is where uninsured motorist coverage comes into play. This car insurance policy is designed to protect policyholders from paying out of pocket for repairs, medical costs, and other expenses if they are hit by an uninsured or underinsured driver. With auto repair costs up by 61.5% in 2019, understanding what uninsured motorist coverage is and how it works is essential to ensuring you're protected on and off the road.
Underinsured motorist coverage, also referred to as uninsured automobile coverage, is a type of car insurance policy that's mandatory in most Canadian provinces. This automobile insurance protects you if you're injured in a collision where the at-fault driver either has no insurance, not enough insurance, or can't be identified (a hit-and-run). Uninsured motorist coverage typically covers the following:
Lost wages
Medical expenses
Funeral costs
Rehabilitation bills
Although all drivers in Canada are legally mandated to have a minimum amount of car insurance to operate a motor vehicle on public roadways (varies by province), not all do. This means that many drivers on the road are either driving with no insurance at all, or are driving with minimum limits that wouldn't come close to covering costs associated with causing a serious accident involving expensive property damage or severe bodily injury to a third-party. Therefore, uninsured motorist coverage is a form of mandatory coverage that's been put in place by most provincial governments to protect you if you are involved in an accident with an irresponsible driver, ensuring you aren't stuck paying for their mistakes. Hit-and-run example, explained below:
Let's say you're driving home from work one evening when you're T-boned at an intersection. Because there are no witnesses, the other driver decides to leave the scene, leaving you alone and injured. As the at-fault motorist is unidentifiable, your uninsured motorist insurance will kick into gear.
As we mentioned briefly, uninsured driver automobile insurance is a form of mandatory coverage in most provinces. For example, in Ontario, British Columbia, New Brunswick, and Newfoundland, this automobile insurance is automatically included in every standard insurance policy offered by insurance companies.
In other provinces like Saskatchewan, you have the option of purchasing uninsured motorist insurance coverage on top of your mandatory coverage requirements. In Alberta, however, no such coverage exists. Instead, motorists must file a claim through the Motor Vehicle Accident Claims Program (MVAC) overseen by the Alberta government.
Understanding what is and isn't covered under uninsured motorist insurance will help you make an informed decision about whether you need to purchase higher limits or additional coverage:
The coverage under this policy includes:
Rehabilitation expenses, such as physiotherapy, massage therapy, etc.
Funeral costs if someone passes away as a result of the accident.
Loss of income due to injuries.
Medical bills related to injuries caused by an uninsured driver/unidentified driver.
Death benefits for any surviving dependents of the deceased.
Covers hit-and-runs.
The following items are not included in this policy:
At-fault accidents that you cause.
If you are involved in an accident where the other driver has enough insurance coverage to cover damage and bodily injury expenses.
Hit-and-run driver example, explained below:
Jessica, a 27-year-old driver from Mississauga, was injured when a speeding car ran a red light and struck her vehicle, before fleeing the scene. As a result, she suffered multiple fractures and couldn’t return to work for several months as she recovered. Because police were unable to locate the unidentified automobile, her uninsured motorist coverage kicked in and covered over $30,000 worth of medical expenses and lost wages.
Coverage minimums for uninsured motorist coverage will vary by province, given that insurance standards are regulated provincially. However, most coverage limits range from $200,000 to $1 million. This can sound like a lot, but when you consider that vehicle repair costs have increased by 22.1% from 2019 to 2024, these expenses can add up quickly. So, how can you determine how much uninsured driver insurance you need? Here's what you should consider:
What time of the day do you find yourself behind the wheel? If you're driving on the weekends between 12 AM and 3 AM or weekdays during rush hour, you may be more at risk of being involved in an accident with an uninsured motorist.
Do you live in the city or a more rural area? Cities see more hit-and-run accidents than rural communities.
Do you own a generous income and have dependents? You may want to consider higher coverage limits to ensure you're properly compensated if you're injured by another vehicle that is underinsured or unidentified.
As a rule of thumb, you may want to consider matching your coverage limits to your liability limits.
Unsure whether you have coverage against uninsured motorists? The good news is that most motorists in Canada already do, as it's a mandatory policy in all provinces except for Alberta. That said, if your driving habits have changed or you've moved to a new neighbourhood, your current limits may not be enough. What you can do is:
Check your auto insurance declaration page for “Uninsured Motorist” or “Uninsured Automobile” sections to confirm whether or not you have this insurance policy if you live in Alberta.
Ask your broker if the option to increase your limits is available.
Consider adding collision coverage and comprehensive coverage to ensure you aren't responsible for any property damage that occurs to your vehicle.
No driver thinks they'll be hit by an uninsured, underinsured, or unidentified driver until it happens, which is why it's important to make sure you're covered ahead of time in case the unexpected happens. At BrokerLink, we help Canadians purchase affordable car insurance. With access to numerous policies from top providers, we can customize your policies based on your needs and budget, including the following types of auto insurance:
Third-party car liability insurance
Accident benefits coverage
Accident forgiveness
Comprehensive car coverage
Collision car coverage
To work with us, give us a call over the phone to speak with a broker directly. You can also get a free insurance quote using our online quote tool at any time!
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Uninsured motorist coverage and collision coverage may both pay for property damage that results from an accident with a driver who is uninsured or underinsured. However, collision coverage will typically only pay for damage to your vehicle, though it will pay for the damage regardless of which is at fault for the accident. On the other hand, uninsured motorist coverage may pay for damage to your vehicle or other property that results from an accident, though it will usually only cover these expenses if the accident was caused by the uninsured or underinsured driver.
The amount of uninsured motorist coverage you need varies from driver to driver. Policyholders usually have a choice when it comes to coverage limits for each type of coverage. Some experts recommend choosing an uninsured motorist coverage limit similar to the limit that you select for third party liability coverage, but it will ultimately depend on your needs and budget.
You can buy uninsured motorist coverage from an insurance agent or an insurance broker. Either can help you understand how the coverage works, recommend coverage limits, and ensure your policy complies with the local laws in your province. Often uninsured motorist coverage is covered in any insurance policy purchased from an insurance company.
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