Car Accidents in Ontario: What to Do If the Driver is Uninsured
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About 2,000 accidents a year in Ontario involve drivers who don’t have insurance. Here are a few things you can do to protect yourself from the unexpected expenses of an uninsured or underinsured driver.

In Ontario – and any other province or territory in Canada, for that matter – it is mandatory that you have insurance. Unfortunately, when you’re involved in an accident, you may find that the other driver doesn’t carry insurance.

In the third of our three-part series on car accidents in Ontario, here’s what you need to know about what to do if the driver is uninsured.

Option A: Add to Your Own Insurance

It’s possible to add on to own policy to protect yourself from the additional expenses that will occur if you’re in an accident with an uninsured or underinsured motorist. Talk to your insurance agent or broker to find out more.

Option B: What to do if you didn’t take Option A

Extra insurance is helpful if you’ve added it before the accident happens. But what if you don’t have it at the time of the accident? Follow these three steps:

Call the police

For the sake of documentation that your insurance company will need, call the police if you are in an accident with an uninsured driver so they can generate a report. Calling the police protects you from possible scams or fraud – and your insurance company will require it to file your claim! However, know that a police report doesn’t impact your insurance company’s assessment of the accident and consequently whether your rates will change. Insurance carriers make their own determination based on the rules set out for the industry.

Take photos of the damage that occurred

This, along with the police report, will provide evidence to your insurance company as to what happened.

Contact your insurance company to start the claims process

Once you contact your insurance company, they will tell you exactly what you need to do. There will be forms! If you know or suspect the other driver does not have insurance, tell you agent immediately.

No-Fault Insurance?

Ontario has something called “no-fault” insurance. This doesn’t mean that if there’s an accident, it’s no one’s fault. No-fault insurance refers simply to the way insurance claims are handled in Ontario. Under the no-fault system, each driver’s own insurance company will handle the claim.

If you were not at fault in the accident, your insurance policy should cover the costs of injuries, death, and repair to your vehicle. However, because the company cannot recoup the costs from the other driver’s insurance, you may risk having your premiums go up. There is a possibility of pursuing legal action against the uninsured driver, but that carries its own risks if the driver does not have assets or the ability to pay the costs of the damages.

If you find that you need a little extra cash to get you through a short-term financial crisis like a car accident, Pay2Day can help. Find a retail store near you to get started.

Read part 1 of this series:       What do Do if You’re in a Car Accident in Ontario

Read part 2 of this series:       Car Accident Reporting: What Are the Rules in Ontario?



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