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.
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.
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:
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?