< Back to Blog

Penalties for Driving Without Insurance

No matter where you live in Canada, it is illegal to drive without car insurance. If you’re caught driving without insurance, you will face hefty fines and a conviction will have a significant impact on your future insurance premium. If you’re involved in a car accident, and you are not insured, the consequences and costs are more severe.

What are the fines and penalties for driving without insurance in Ontario?

The penalties for driving without insurance vary across the country. While no demerit points are involved in Ontario, the penalties upon conviction are severe:

  • A minimum fine of $5,000to a maximum of $25,000. Your driver’s licence may also be suspended from 30 days up to one year.
  • Fines for a second or subsequent conviction range from $10,000 to $50,000, and your licence can be suspended for up to one year. On top of that, the vehicle you’re driving can be impounded for three months, and you’ll have to pay the costs associated with the vehicle’s impoundment and storage.
  • Ontario also adds a mandatory 25% victim fine surcharge to these costs on conviction.

What happens if I drive a vehicle that isn’t mine without insurance?

Suppose you borrow your friend’s car to drive to the store, but the vehicle is not insured by the owner. If you’re caught, you could be charged with failing to produce an insurance card since an insurance policy follows the vehicle, not the driver. The owner of the uninsured vehicle may also be charged with driving without insurance as a result.

Before you borrow anyone’s vehicle, make sure they have a valid, active insurance policy on that car before getting behind the wheel.

How does a driving-without-insurance conviction affect insurance?

The fines and penalties for driving without insurance coverage in Ontario are tough, and they stay on your driving record for three years. But the effect it can have on your insurance record could prove more costly.

Insurers tend to view a driving without insurance conviction as seriously as an impaired driving conviction. It is possible any of the following could happen:

  • Many insurance companies may refuse to insure you.
  • You could be classified as a high-risk driver, which makes it difficult to get insured.
  • If you do find an insurer that will offer you a policy, the cost won’t be cheap. You may be looking at paying thousands of dollars a year for insurance.

What happens if you get into an accident without car insurance?

If you get into a collision and you don’t have any insurance coverage, you’re in a world of trouble. For starters, you will have to pay for all the damages to your vehicle as well as any other vehicle(s) involved in the accident – even if you’re not at-fault for the collision.

Car accidents tend to injure people, sometimes severely, or even cause death. The cost of medical rehabilitation for someone injured in an accident may not be cheap, and in some cases, the injuries someone suffers may be life-altering.

As a driver without insurance, you could face expensive lawsuits. The injured people as well as their insurers may come after you through the courts to recoup their financial losses and legal fees. Those costs could run into hundreds of thousands of dollars, and without insurance, you may be forced to declare bankruptcy.

If you are uninsured and are injured in a car accident for which you are not at-fault, you cannot sue the at-fault driver for damages. That leaves you footing the medical bills for your rehabilitation.

What happens if you’re in an accident with an uninsured driver?

If you get into a collision with another motorist who does not have insurance, but you are insured, there’s no need to worry.

One of the coverages in a standard auto policy in Ontario is called “uninsured auto”. It protects you from this circumstance, but it has a limit of $200,000 for damage to your vehicle minus a deductible. However, you can increase the limit on this coverage. Also, uninsured auto coverage protects you in the event you are involved in an accident with a hit-and-run driver. Your insurance company will pay for the damage to your vehicle, any injury you suffer, and any other expense related to the claim.

If you have additional coverage such as collision or upset coverage, it will kick in up to the liability limit. Though collision coverage usually provides funds for damage to your vehicle if you’re at-fault for an accident, most insurers will payout for repairs to your car damaged by an uninsured motorist.

What happens if an uninsured driver flees the scene of an accident?

Uninsured (and unlicensed) drivers might flee the scene of an accident, even though it’s not a smart move to do so. Like driving without insurance, failing to remain at the scene of an accident is illegal and comes with serious consequences. You could be charged under your provincial highway act, or you could be charged under the criminal code.

In Ontario, for example, drivers found guilty of fleeing the scene face jail time up to six months, risk losing their driver’s licence for two years, and face fines ranging from $200 to $2,000 – not to mention accumulating seven demerit points. Drivers found guilty under the criminal code may face jail time of up to five years.

If the driver had auto insurance, they would likely face a significant premium increase. In more severe cases, the insurance company could cancel the policy altogether.

If the driver didn’t have insurance, it will be challenging for them to find a provider afterward. And if they do, they can expect high premiums as these convictions will stay on their insurance record for at least three years.

What happens if an uninsured driver seriously injures you?

Suppose you are in a collision with an uninsured motorist and are severely injured. In that case, the accident benefits portion of your policy will cover your medical expenses up to a limit of $200,000 on a standard insurance policy.

You can also add optional protection to your policy to safeguard against this type or risk, known as the family protection endorsement. This is designed to protect you and your family if you are seriously injured in an accident by an uninsured driver or as a result of a hit-and-run.

The value of being legally insured

Accidents can happen at any time to anyone, including safe drivers. Ensuring you have adequate car insurance coverage is the best way to protect yourself, your family, and vehicle as well as others around you.


Source: Insurancehotline.com


Protect yourself, protect your family, protect your devices.

Learn More

DPM Driver’s Ed Scholarship

DPM Driver’s Ed Scholarship. Your security, our responsibility.

Learn More

Blenheim Office

24 Marlborough St. N., Box 479
Blenheim, ON N0P1A0

Phone: 519-676-8159
Fax: 519-676-0020

Chatham Office

250 St. Clair St.
Chatham, ON N7L 3J9

Phone: 519-352-4343
Toll Free: 1-800-561-4949
Fax: 519-352-6484

Essex Office

29 Talbot St. N, Box 69
Essex, ON N8M 2Y1

Phone: 519-776-6457
Fax: 519-776-7400

Harrow Office

65 King St. W., Box 790
Harrow, ON N0R 1G0

Phone: 519-738-2277
Fax: 519-738-2279

Tilbury Office

59 Mill St. E, Box 1239
Tilbury, ON N0P 2L0

Phone: 519-682-0202
Fax: 519-682-2391

Wallaceburg Office

403 Wellington St.
Wallaceburg, ON N8A 2Y2

Phone: 519-627-1777

DPM Insurance is a BrokerLink company.