Ontario’s Compulsory Automobile Insurance Act prohibits operating an uninsured vehicle on Ontario’s highways. An injured occupant may lose access to some benefits, while an at-fault owner or driver may face personal liability. Below are the fine amounts outlined in the Act.
We reviewed Ontario’s Compulsory Automobile Insurance Act and FSRA’s uninsured-driving guide for the fine amounts, licence suspensions and vehicle impoundment, and injury benefits lost by driving without insurance. We also reviewed the Insurance Bureau of Canada’s car-lending guide on borrowed vehicles and the Facility Association’s consumer FAQ from an organization that provides coverage to consumers who can’t obtain coverage elsewhere, which offers more insight into the steps you can take if you find yourself without auto insurance in Ontario.
Is It Illegal to Drive Without Insurance in Ontario?
Yes. Having an expired pink slip does not keep your cancelled policy valid. According to Ontario’s Compulsory Automobile Insurance Act, vehicle owners or lessees cannot operate a motor vehicle on a highway, nor can they authorize another person to do so, unless the vehicle has auto insurance. Therefore, all motor vehicles being driven in Ontario must have valid insurance coverage.
Why You Need Insurance to Drive in Ontario
All standard auto insurance policies in Ontario will include third-party liability, uninsured automobile coverage and accident-benefit coverage. Physical-damage coverage is optional, and other benefits vary by policy.
Be sure to check your Certificate of Automobile Insurance for details on your policy, including the insured vehicle, coverage period, and listed drivers.
What Happens If You Get Caught Driving Without Insurance in Ontario?
Once charged, it is important to review the Act and the specific section cited on your charge. You will likely need to speak with a lawyer about what happens at your court date. Being charged is not the same thing as being convicted.
What Is the Fine for Driving Without Insurance in Ontario?
| Conviction | Statutory fine | Other orders the justice may make |
|---|---|---|
| First | $5,000 to $25,000 | A licence suspension of up to one year; an impoundment order of up to three months. |
| Subsequent | $10,000 to $50,000 | In addition, the justice may order the suspension of a licence for up to one year and the impoundment of the vehicle for up to three months. |
Additional costs may also apply, such as a provincial victim fine surcharge, court costs, storage, and other fees if your vehicle is impounded. So the total cost is difficult to accurately predict.
The fine that a person who owns or leases a vehicle faces if convicted of driving without insurance under section 2 of the Act is set out in the legislation. There isn’t a separate, higher fine simply because an uninsured driver was also involved in a collision; the court applies the law to the charge and facts of the case.
Other Penalties for Driving Without Insurance in Ontario
- Upon a conviction under section 2, a justice can suspend a person’s driver’s licence for up to a year. The justice may also order a vehicle to be seized and impounded for up to three months. Any storage costs will become a lien against the vehicle.
- According to the Financial Services Regulatory Authority of Ontario (FSRA), an insurer may classify a driver with such a conviction as a high-risk driver, refuse to provide insurance, or insure the driver but increase their rate. No reliable double- or triple-premium rule exists.
- If an accident occurs, an at-fault driver or owner may become personally liable, depending on the circumstances, for property damage, bodily injury or death that their auto insurance policy would have otherwise covered. Depending on the circumstances, that personal liability could be substantial.
Read More: See How Vehicle Impoundment Works in Canada
What Happens to Injury Benefits If the Vehicle Is Uninsured?
FSRA also warns that the financial consequences can be significant for uninsured motorists who are at fault in a collision that results in injury or death, including personal liability for medical costs and other losses.
Persons who are injured while driving or occupying an uninsured vehicle could be denied income-replacement benefits. Non-earner benefits could also be denied. In some cases, a person who is injured while driving or occupying an uninsured vehicle may not have the right to sue an at-fault driver to recover for injuries.
Access to other accident benefits and health-care entitlements depends on the applicable policies and statutory priority rules, including the person’s role in the accident.
Seek legal advice promptly after a collision.
Can Your Driver’s Licence Be Suspended for Driving Without Insurance?
While it’s not automatic, you should check your Ministry of Transportation record and court order before driving again. Driving while suspended is a separate offence with its own consequences.
Under the Act, the justice has the option to suspend a driver’s licence for up to a year. This does not mean that this happens in all cases.
Can You Drive Someone Else’s Car Without Insurance in Ontario?
Insurance usually follows the vehicle. A loss can affect the owner’s insurance. The owner may be responsible for the deductible. It may also affect the owner’s insurance record.
For an occasional trip, you may not need a separate auto policy. Make sure the car is insured. You must have a valid driver’s licence, permission from the car’s owner, and meet the borrowed-vehicle policy’s driver rules.
| Borrowing situation | Check before driving |
|---|---|
| One-time or occasional use | Owner’s consent, valid licence, active vehicle policy and any policy restrictions. |
| Regular use or a household driver | Whether a particular driver must be listed or rated separately by your insurer. |
| Delivery, rideshare or other business use | Check before driving. Your personal auto insurance may not cover this type of driving. Verify commercial or platform insurance before driving. |
| Driver excluded by endorsement | Do not drive the vehicle while you are excluded. Ask the insurer what must change before coverage can apply. |
| Vehicle has no active policy | Do not drive this vehicle, even if you are insured on another vehicle. |
Read More: See How Insurance Works When You Drive Someone Else’s Car
What to Do If Your Policy May Have Lapsed
- Park the vehicle. Do not operate the vehicle. Do not drive to an appointment, a broker’s office, or for an inspection.
- Do not drive until your insurer or broker confirms when coverage stopped, whether the policy can be reinstated or a new application is required, and the date and time new coverage takes effect; get that confirmation and proof of insurance in writing.
- If your policy has lapsed, pay for insurance only from a confirmed insurer or licensed representative.
- If you can’t get insurance from insurers in the voluntary market, ask a licensed broker about Facility Association. Facility Association can help eligible drivers obtain insurance through a servicing carrier when they can’t get coverage in the standard insurance market.
Read More: See What a Lapse in Car Insurance History Can Affect
How to Avoid Penalties for Driving Without Insurance
Keep your payment information up to date. Open any notice from your insurer about renewals, cancellations, or missed payments as soon as you receive it. Make sure your Certificate of Automobile Insurance covers the right vehicle, coverage period and listed drivers. If you regularly allow anyone else to drive your vehicle, make sure you disclose them to your insurer. Keep proof of coverage accessible to anyone who uses or borrows your vehicle; an acceptable paper or electronic version is sufficient. Let your insurer know about changes in vehicle use before a claim exposes the gap.