Over the past couple of years, we have heard many clients complain that they are frustrated with the delay in receiving assistance from their insurance companies. Some have even gone so far as to suggest that they are going to cancel their policies and drive without insurance.
While we understand their frustrations, we quickly remind them that as a driver in Ontario you must have automobile insurance. According to s.2 of the Compulsory Automobile Insurance Act, “no owner or lessee of a motor vehicle shall operate the vehicle, or cause or permit the motor vehicle to be operated, unless the motor vehicle is insured under a contract of automobile insurance”.
If convicted of driving without insurance, or failing to surrender an insurance card for inspection to a police officer, you may be face the following penalties, “on a first conviction to a fine of not less than $5,000 and not more than $25,000, and on a subsequent conviction to a fine of not less than $10,000 and not more than $50,000.” On top of this, your licence may be suspended for up to a year and your insurance premiums will likely rise. You will also find it more difficult to renew your insurance with other companies.
S. 2 also states that in the event of a conviction for failing to drive without insurance, the court may order that the motor vehicle that was operated without insurance be seized, impounded, and taken into the custody of the law for a period of up to 3 months.
If you are injured while driving without insurance, the consequences can be financially devastating. Generally speaking: an uninsured driver loses the right to sue other drivers for their negligence; and is not entitled to claim certain accident benefits from their own insurer, including Income Replacement Benefits.
Another consequence of driving without insurance occurs where the uninsured driver is responsible for the accident; they will ultimately be responsible to pay the damages that flow from the accident. In these situations, the injured parties initially sue their own insurance companies under the uninsured provisions of their policies. However, their insurance companies (who pay under the uninsured provisions) are increasingly relying upon subrogation claims to recover against the at-fault drivers for their losses.
There are some situations, however, where individuals are involved in automobile collisions as pedestrians, cyclists, or passengers and do not have their own automobile insurance policy. We are often asked whether there is any recourse available to injured victims in these situations.
The answer is YES!
The general rule is that accident benefits are available to all victims of motor vehicle accidents in Ontario, regardless of whether they have a policy of their own. Where the victim does not have their own insurance policy, the claim may rest with the insurer of the automobile in which they were an occupant, or the insurer of any other automobile involved in the accident.
Where there is no insurance policy available, the Motor Vehicle Accident Claims Fund will step in as the payer of last resort.
If you are a passenger of an uninsured vehicle, you may still sue the at-fault drivers for their negligence, depending on whether you were aware that the vehicle was uninsured. In other words, if you were unaware that the vehicle was uninsured you will be allowed to sue. Unfortunately, all operators of vehicles must have insurance and should therefore be aware of whether the vehicle has insurance before operating the vehicle.
Navigating insurance issues can be overwhelming, especially in the aftermath of being involved in a motor vehicle accident. If you aren’t sure about your rights or if you need with your claim, feel free to call P&M Personal Injury Lawyers to arrange your free consultation today.
