Driving without auto insurance in Canada: What you really need to know

Have you ever purchased a new car or changed your address and accidentally ended up driving without insurance? Even if it was a complete accident, there could still be serious penalties, including hefty fines and serious financial consequences.

In Canada, all drivers are required by law to carry automobile insurance. This article will go over why you need auto insurance, how you could accidentally end up driving without insurance, what you can do to help prevent it and what consequences uninsured drivers face.

Vehicle insurance is a mandatory coverage across Canada because it protects drivers from potentially massive financial losses after an accident, while making it possible to compensate anyone who was involved. For these reasons, every car on the road is required by law to be insured. 

At a minimum, automobile insurance includes liability coverage, also known as third-party liability coverage. Liability insurance helps cover the cost of damages to another person’s property as well as injuries that aren’t covered by a public insurance plan. It doesn’t, however, cover your own car.

Auto insurance may also cover property damage and bodily injuries, depending on the coverages purchased. Across Canada, there are different types of plans and minimum coverage requirements, which vary depending on your province or territory.

In Canada, the minimum required liability coverage amount varies depending on where you live, generally ranging from $50,000 to $500,000. It’s a good idea to check your province or territory’s website to familiarize yourself with the exact coverage requirements.

If you get behind the wheel as an uninsured driver, you could face a whole host of consequences. You could be fined, lose your driver’s licence or vehicle registration or have your motor vehicle seized, just to name a few. Province- and territory-specific penalties may also apply.

If you’re pulled over while driving without insurance, you could face hefty fines. These may vary depending on where you live, with other administrative fees potentially applying as well. Fines can range from several hundred dollars to several thousand dollars, even reaching the tens of thousands if you’re a repeat offender in certain jurisdictions.

If you want to know the exact cost of the fines, you can check with your provincial or territorial legal authority.

Driving without insurance may also lead to your licence being suspended. In other words, you won’t be able to drive for a certain amount of time—the length of which depends on where you live and what your driving history looks like. This could seriously impact your daily life.

Driving without insurance can get expensive fast. In some cases, your vehicle could be seized immediately. With impound and recovery fees on top of any other fines, the costs can really add up!

This is the biggest risk, but it’s often overlooked. If you have an uninsured vehicle and you cause an accident, you could be responsible for the damage to another person’s vehicle or property. For example, if you don’t have insurance and accidentally run a red light, clipping another vehicle entering the intersection, you might have to cover the costs of the damage, depending on the laws in your province or territory.

The long and short of it? When you forego a car insurance policy, you run the risk of some pretty major consequences.

When you go uninsured, it shows in your insurance history. This record is one of the elements an insurance company will look at when assessing your risk profile and establishing your premium. If you forego insurance, you could:

• Be subject to closer scrutiny the next time you apply for insurance
• Have fewer options on the insurance market
• Face higher premiums for many years

By maintaining coverage that meets your needs, you’re setting yourself up for success with insurers in the long run.

If one of the drivers in a car accident doesn’t have auto insurance, the situation can be a lot more complicated. Along with potentially significant financial consequences, it can also affect how claims and compensation are handled. Here are a couple of scenarios:

If you cause an accident as an uninsured driver, you may have to pay out of pocket for some of the damage caused to the other party. You may even face civil suits demanding considerable sums of money as compensation for medical bills or other expenses.

If you find yourself in a car accident with an uninsured driver, there are a couple of important things you should do:

• Get the other driver’s contact information and vehicle details.
• Call the authorities if needed.
• Curious what else you should do? Check out our step-by-step guide on what to do after an accident.

Whether you’re purchasing a new vehicle, going through a major life change, changing your bank or credit card or reviewing your policy renewal, it’s a good idea to check your insurance and make sure it’s up to date and meets your needs. Let’s dive into a few common scenarios.

Sometimes life gets in the way and you accidentally end up without auto insurance coverage. For example, you might:

• Move and forget to update your address, or lose track of an email, which could result in your policy not being renewed
• Get a new bank card but forget to update your file, so an automated payment fails to go through
• Take a vehicle out of storage and forget to reactivate the insurance
• Buy a new car, but forget to make sure it’s covered before driving it off the lot

Whatever the reason, driving uninsured can lead to penalties that vary by province or territory.

Are you insured, but forgot your proof of insurance? Driving without proof is not the same as driving without auto coverage, but you could still face penalties, which are typically minor.

But there’s good news! Did you know:

Digital proof of insurance is accepted in several provinces and territories.

If your insurance provider has a mobile app, you can quickly access digital proof (for example, the Desjardins Insurance Home-Auto app).

Thinking about lending your car to a friend or family member? In many cases, your vehicle’s insurance will still apply, as long as certain conditions are met.

When you lend your car to an occasional driver who’s not declared in your policy, however, issues may arise if you have to file a claim. Here are a couple of handy tips for avoiding any surprises down the line:

• Declare anyone who regularly drives your vehicle to your insurance company.
• Check the terms and conditions of your insurance policy before lending your car to an occasional driver.

If you’ve temporarily taken your vehicle off the road, make sure it’s properly insured before you drive it again. If it isn’t, you could face penalties for being an uninsured driver.

All it takes is a moment of forgetfulness or a major life change and you could end up without insurance. But a few good habits can help you keep your policy up to date and avoid accidentally losing your insurance:

• Update your insurance provider any time your contact information changes (address, contact details).
• Double check that your autopay details are correct to avoid any delays in payment.
• Set a reminder in your phone or calendar to review your automobile policy at renewal.
• Update your coverage before getting behind the wheel of a new vehicle for the first time.
• Make sure your policy is reactivated after taking your vehicle out of storage.
• Declare anyone who regularly drives your car to your insurance company.

Driving without insurance leaves vehicle owners vulnerable to some very real risks: hefty fines, licence suspension, vehicle seizure and personal financial liability in the event of an accident. Plus, it could have lasting impacts on your insurance record.

Sometimes, situations arise that lead to a driver ending up without insurance. What matters is that you act fast to rectify the situation.

Concerned about a lapse in coverage? It’s never too late to fix the situation. Get a quick quote online from Desjardins Insurance or, if you already have a Desjardins Insurance policy, use our online services to manage your car insurance online:

• Access digital proof of insurance in just a few seconds, under Your account. 
• Store a vehicle or take it out of storage and reactivate your coverage using online services.
• Update your address and contact information to make sure your documents and notifications are sent to the right address. 
• Review your documents when your auto policy is renewed.

Desjardins Insurance refers to Desjardins General Insurance Inc. in Quebec and Certas Direct Insurance Company or Certas Home and Auto Insurance Company, underwriters of automobile and property insurance in other provinces and territories.

Certain conditions, exclusions and limitations may apply.

The terms and conditions of the coverages described are set out in the insurance policy, which always prevails.

These tips are provided for information and prevention purposes only. They are general in nature, and Desjardins Insurance cannot be held liable for them. We recommend using caution and consulting a certified insurance agent for comprehensive, tailored advice.

Some jurisdictions require you to provide a paper copy of your proof of insurance. A digital copy may not be accepted.

Auto insurance is not available in MB, SK and BC due to government-run plans.

Desjardins^®, Desjardins Insurance^®, all trademarks containing the word Desjardins, as well as related logos are trademarks of the Fédération des caisses Desjardins du Québec, used under licence.