What To Do When You Get into A Car Accident with No Insurance
Driving in Canada requires you to have basic liability insurance by law. Driving without insurance can lead to significant fines, suspended licenses,even impounding your vehicle. Now, what might happen if you get into an accident without adequate insurance?
Well, no driver would like to land up in a car accident with no insurance. Moreover, you should have adequate coverage for your vehicle to respect the existing laws. Otherwise, you would have to pay the accident damage costs, treatment expenses, third-party liability coverage, fines,penalties.
Car insurance in Canada isn’t expensive. Click here to explore the most affordable auto insurance plans recommended by insurance brokerages like Surex.
What If You Get Caught Driving Without Insurance?
Whether or not the car belongs to you, be prepared to shell out a fine if you are caught driving without insurance. So, if you decide to try out your friend’s car, ensure it has adequate coverage too.
In case you happen to commit the offence for the first time, you will have to shell out at least $5,000 as a fine. This can range up to $25,000 in some provinces. Now, if law enforcement officials catch you repeating the offence within one year, you can face mandatory imprisonment. The term ranges from 30 days to 6 months, which explains the harshness of the prevailing norms.
Moreover, you can get your vehicle impounded or your license suspended. When you calculate the cumulative value of your penalties, fines,other monetary losses, you’d realize that overlooking your insurance isn’t worth it. A comprehensive policy for your vehicle would be available at just a few hundred dollars.
What If You Land In An Accident Without Coverage?
Financial drainage, fines, imprisonment,vehicle impoundment are all possible outcomes if you drive without insuranceland in an accident. Why risk your financesreputation as a citizen when you know the legal norms guiding the liability coverage requirement? In case you land up in a car accident with no insurance, you need to shell out the following costs.
- Damage costs for third-party property
- Compensation for possible loss of lives
- Medical treatment costs for yourselfthe occupants of both the cars
- Collision damagerepair costs of your vehicle
- At least $2,500 as a fineother legal charges
Let’s understand this with the help of an example. A rear-end collision might result in a cost of around $10,000 only for the repairs. This largely depends on how severe the damage is. Also, you have to spend money to repair your own car or get it replaced. If you face imprisonment, you will encounter losses at your workplace. This can further complicate your lifejeopardize you financially.
Moreover, you will be booked under a criminal code if you try to flee the accident site. It would be treated as a ‘hitrun’ case, implying that you must serve your time in jail.
All these convictions would mess up your driving record. Ultimately, when you try to purchase your insurance, most reputed companies wouldn’t be willing to insure you. Even those interested in selling an insurance policy to such drivers would charge high premiums. This would land you up in total loss.
The very purpose of automobile insurance is to secure youother driverstheir vehicles. Having adequate coverage not only saves you from legal hassles but excessive repair costs, medical expenses,associated issues. There’s no benefit to overlooking your automobile insurance. Landing up in a car accident no insurance can be far more expensive than the few hundred dollars you were trying to save!
The Basic Insurance Coverages That Are Required In Canada
When you explore different provinces in Canada, you will find a slight difference in the liability coverage requirements. Here’s what drivers in Ontario need to consider when they sit before the steering wheel.
Third-party liability: You must have coverage of at least $200,000 to cover possible damages you inflict on third parties. This would help compensate for injuries caused to others on the road, as well as repair the damages you caused. However, Quebec requires a minimum policy of only $50,000, whereas, in Nova Scotia, the requirement is as high as $5,00,000.
Property damage compensation: A vehicle might have to be replaced or repaired following a collision. Therefore, drivers should have a provision for direct compensation for property damage.
Statutory accident benefits: This is a provision that you would need to manage the cost of medicine, treatment, rehabilitation,caregiving. Following an accident, you might lose wages. With the statutory accident benefits, you can get these costs compensated for.
Uninsured motorist insurance: In case you are not at fault,the motorist causing the accident doesn’t have insurance coverage; you can get compensation through this coverage. Even if the motorist escapesleaves the site of the accident, your policy should have this benefit.
What Happens If An Uninsured Driver Cis At Fault For A Car Accident You’re Involved In?
Well, if you are not at fault, you will get compensation per the Statutory Accident Benefits Schedule. The legal system in Ontarioother provinces in Canada warrants protection to motorists as well as occupants in the vehicle. In case they sustain damage or injuries due to the fault of uninsured drivers, they are entitled to compensation depending on the extent of the lossesthe severity of the injuries.
What To Do When You Get Into A Car Accident With No Insurance — Endnote
Driving without an automobile insurance policy doesn’t bring much benefit to your table. Instead, you remain susceptible to severe financial distresslegal hassles following a no car insurance accident. This explains why automobile owners try not to overlook the legal mandates. It’s logical enough to be economical with your policy.
So, reach out to a reputed insurance brokerage that can help you compare the best care insurance quotesrecommend affordable car insurance policies to you.