What Happens If I am Driving Without Insurance in Ontario?

Most people assume that it is very bad to drive without insurance, and they are correct. But what are the consequences of driving without insurance?

If you think that driving without insurance is a criminal offence, you are wrong. Most people assume it is a criminal offence however, it is not. It is an offence under the ‘Compulsory Insurance Act of Ontario’. If you get caught driving a vehicle, knowingly, without insurance you will be fined and can face other penalties. You can face a fine of anywhere between five thousand to twenty-five thousand dollars for your first offence. It is a very bad idea to drive without insurance for a number of reasons.

If you cause an accident and are sued, you will not have any coverage from an insurance company and will have to pay any damages out of your own pocket.

If you are in a motor vehicle crash, even if it is not your fault, you will not have the benefits normally available to you under the Statutory Accident Benefits Schedule. Specifically, you will not be entitled to Income Replacement Benefits. That could be significant if you cannot work for a period of time.

However, the law, as always is not crystal clear and there are numerous circumstances where you can obtain these benefits, for example, if you did not know and could not have known that the vehicle did not have insurance. This can arise under various scenarios and if you are in a motor insurance policy, contact our office to explore which options may be available to you.

Eli joined Harvey Katz law office in 2009 after articling at one of Canada’s largest national law firms and has since provided outstanding legal advocacy and interpersonal skills to our clients. Eli’s practise includes representing our clients on personal injury matters, residential and commercial real estate transactions, and wills and estate planning.