How to Avoid Fines with Insurance in Canada
3 minutes to read
Every year, thousands of uninsured motorists get behind the wheel of a motor vehicle in Canada. And in many cases, these same drivers are involved in, and as is often the case, the cause of serious motor vehicular accidents. These incidents can cause financial ruin for both the uninsured motorist and occasionally, the innocent victims as well. Here’s why insurance can help you avoid fines in Canada.
When you are the cause of an accident, and you do not have valid or sufficient insurance, just try to envision what would happen if you were sued. You could spend years working to cover legal costs, medical bills, and more. In fact, the court could even claim your property as a way to help you cover the expenses.
If you are caught multiple times without insurance, it could mean a trip to jail, not to mention yet more fines and potential legal fees. And, driving without insurance can have very negative ramifications on your driving record. So, anytime that you go to apply for insurance in the future, these violations will appear on your record. This means that your ability to get insurance will come at a higher premium, as you are considered higher risk due to previous unlawful driving. In some cases, you could even be denied coverage altogether.
Driving Without Auto Insurance in Canada is Illegal
In Canada, it is unlawful to drive without insurance. Canadian law requires that motor vehicle insurance policies require, at a minimum, the following:
- Liability coverage of at least $200,000
- Automobile coverage for uninsured motorists
- Coverage for accident benefits
- Coverage for property damage
If you are pulled over by the police, you must be able to provide proof of insurance via a physical insurance card. If you are unable to provide the card, you may get lucky, and the officer will allow you 48 hours to deliver proof to the applicable police station. But, know that this is simply a courtesy and not a requirement.
How to Find Car Insurance
Here’s a free tool to help you get a quick quote on your car insurance. If you are looking to purchase car insurance, there are a few best practices to follow, and a few minimum requirements to look for. Be sure to check the following whenever requesting an insurance quote:
- Will the policy cover other drivers of your vehicle?
- Is there a maximum distance that you can drive?
- If your job requires you to drive, how does this impact your insurance?
- What factors impact your premium?
- What discounts are available to you?
- How will your car be repaired in the event of an accident?
- Does the insurance allow for factory parts, or only aftermarket parts, in the event of an insured repair?
- Does the policy include towing?
Doing some homework before deciding on what policy to purchase will pay off for you in the long run. However, no matter what policy you purchase, take care in reading the fine print so that you know exactly what is covered, and what is not. Also, don’t be afraid to shop around for other insurance providers every few years. This is a good practice, and if your insurance company charges more than the others, take time to inquire as to why from your current insurance provider. You may find that other offers do not include as much coverage as the policy you have. When shopping for car insurance, doing diligence is key.
Once you’ve got your insurance, find out what you need to know about driving someone else’s car and whether or not you will be insured.