What Happens If You Don’t Have Auto Insurance?

Posted by  On October 5, 2020
Should I need auto insurance?

Auto insurance is mandatory, no matter where you live in Canada. It’s illegal to drive on any public road in Canada if you do not have auto insurance for your vehicle.

There are many reasons you need auto insurance other than it being illegal to drive without it. It puts you at enormous risk for jeopardizing your financial future, and you could end up with having to:

  • Pay fines and have your licence suspended
  • Pay for damages for which you are legally responsible
  • Deal with lawsuits
  • Pay very high insurance rates

There are so many reasons to have insurance. A good insurance broker can help craft an insurance policy that works for you, so you’re never out on the road without insurance.

Paying a Fine

If you choose to drive without insurance, and you’re caught, you will likely have your licence suspended, and may even have your vehicle impounded.

If you are in New Brunswick, you will also face a fine of up to $10,250. If you are in Nova Scotia, you may pay up to $4000 for a first offence and up to $5000 for a second one.

Paying for Damages

A much bigger financial impact to you will be paying for damages — not to mention injuries or fatalities — if you have no auto insurance. With no auto insurance, you’ll be on the hook for:

  1. Damages to any cars you hit

    If you are uninsured and hit another car, you’re responsible for paying for all the damages done to that car. Depending on the type of car you hit, you could be facing a very high repair bill.

  2. Expenses for injuries sustained both by yourself and for others

    You may be on the hook for lost wages, as well as any medical expenses not covered by a provincial health plan, such as physiotherapy and attendant care.

Depending on the amount of money you have to pay, you could end up losing everything you’ve worked for, including your house and all of your savings.

Dealing with Lawsuits

If you are driving without auto insurance and cause an accident, you may have to deal with a lawsuit. Either the driver you hit or their insurance company — or both — may end up suing you to force you to pay for the physical damages you caused. As well, they can sue any injuries sustained. You’ll then have to pay for a lawyer to defend you in court.

Higher Insurance Costs

The good news is that because auto insurance is mandatory, if you have a valid licence and a vehicle, you should be able to get auto insurance. The bad news is that auto insurance can be very expensive if you have a serious conviction, like driving without insurance.

You will have to pay much higher rates than someone who has never driven without insurance — and this is on top of all the money you may have spent to cover damages or defend yourself in a lawsuit.

How can I avoid all of this?

The great news is that there is an easy and affordable way to avoid all the stress and expenses that driving without insurance can cause you. And that is to get auto insurance!

If you’ve never had auto insurance before or you’re currently underinsured, you may be wondering just what kind of coverage you need.

Here are the most common types of auto insurance coverage:

  1. Collision

    With collision coverage, you’ll be reimbursed for damages caused to your vehicle as a result of a collision with another vehicle or object. Collision coverage also protects you in case of a rollover or sliding into a ditch when you hit an icy patch or washed-out road.

  2. Comprehensive

    With comprehensive coverage, you’ll be protected by damages that occur not as a result of a collision with another vehicle. Anything from fire to hitting a moose to vehicle theft — you’re protected with comprehensive coverage.

  3. Third-Party liability

    This type of coverage is mandatory. It will protect you if you are found at fault for a collision that either injures or kills someone or damages their property. If you have auto insurance, you are covered for any compensation you must pay the injured parties, as well as for legal fees and settlement awards.

  4. Accident benefits

    What is covered under these benefits vary, but the most common coverage types are for income replacement, payment for medical treatments, and funeral expenses.

  5. Uninsured motorist coverage

    This is to help protect you in case you’re in an accident with an insured motorist. Your insurance policy will cover the accident costs and then deal with recouping any costs from the uninsured motorist on your behalf.

There is one more type of coverage specific to Nova Scotia and New Brunswick called Direct Compensation for Property Damage or DCPD. It’s a mandatory form of liability auto insurance. DPCD means that you will deal with your own insurance company to get your car repaired, no matter who was at fault for the accident your car was damaged in.

If you get auto insurance from Archway Insurance, you can benefit from:

  • Our customized coverage that suits both your needs and your budget.
  • The commitment our team has to deliver high-quality customer care and service. Our brokers can protect your financial future by making sure you have the right auto insurance coverage.
  • Our dedication to our clients, which has resulted in lasting client trust and satisfaction.

You’re Ready to Go!

There are so many reasons you should have auto insurance, other than the fact it’s illegal to drive without it! If you get in an accident, you are putting yourself and your financial future in jeopardy. You may have to:

  • Pay fines as well as for damages for which you a legally responsible
  • Deal with lawsuits as well as having your licence suspended and your car impounded
  • Pay extremely high insurance rates if you ever want to drive again

For more information about what happens if you don’t have auto insurance, call Archway Insurance at 902-477-2511 or contact us here.

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