You got into an accident with an uninsured driver. Now what?
A car accident is stressful regardless of the circumstances. But imagine getting out of your car, approaching the other driver with your info in hand and finding out they don’t have auto insurance.
Auto insurance is mandatory, but that doesn’t mean everyone has it.
You’ll find insurance-less drivers everywhere, for all kinds of reasons.
- They may be short on funds.
- They may be arrogant enough to think they’d never get in an accident.
- Their car has been in storage with insurance removed and they’re “just taking it for a spin” or to get gas before selling.
- They wrongly assume fines for driving without insurance will be less than paying for insurance.
Of note, that last reason is way off. In Ontario, fines for first-time offenders range from $5,000 to $25,000; and subsequent offences could carry fines up to $50,000. There’s also a 25% “victim-fine surcharge” that goes to the province, and your licence may be suspended and your car impounded.
You’ve Had a Collision With Someone Who’s Uninsured. What Now?
1. Call The police
Despite being discouraged from calling the police after a fender bender and instead told to exchange insurance information and go to a reporting centre, this doesn’t apply when the other person is uninsured.
You want the police there to log the driver’s infraction, collect their information, and write a report that will go to your insurance company. If police cannot attend, they’ll tell you to go to a collision reporting centre.
2. Collect As Much Info From The Other Driver As Possible
You should get their name, address, phone number, driver’s licence number, licence plate, and the make, model, and colour of their car. If there are witnesses, get their names and phone numbers as well.
Also, note the date, time, and location of the collision.
3. Take Detailed Photos And Videos
Get closeups of the damage and wide shots of the scene. Capture everything you see, including witnesses.
4. Go To The Hospital If You’re Injured
For minor injuries, see your doctor, preferably within a day. Aside from getting the medical attention you might need, you’ll have a record of your injuries for insurance purposes.
5. Contact Your Insurance Company
Be sure to mention that the other party was uninsured.
Are You Still Covered If The Other Driver Has No Insurance?
Your mandatory insurance covers damage to people and property not directly involved in the accident (Third-Party Liability), your injuries (Statutory Accident Benefits), and repairs to your car if you were not at fault (Direct Compensation).
In Ontario and several other provinces, mandatory basic insurance also includes Uninsured Automobile Coverage, which pays for your medical expenses and damage to your vehicle caused by an uninsured driver.
When Is Mandatory Uninsured Automobile Coverage Not Enough?
Minimum mandatory insurance covers up to $200,000, which may not be enough to pay for medical expenses especially if multiple members of your family are hurt.
For this reason, you may want to add Family Protection Coverage, which fills in the amount between that $200,000 minimum and the value of your policy. If you have $1 million in liability insurance, that extra $800,000 is covered by Family Protection Coverage whether your accident involves an uninsured driver or one that is insured but only for $200,000.
How Will The Repair Process Play Out?
As with any accident, call your insurance company as soon as possible. If you wait too long, your claim may not be honoured. Same day is best. And anything more than seven days is too long.
You’ll be contacted by a claims adjuster who will guide you through the process and may have you fill out a Proof of Loss form. The adjuster will determine how much of your claim will be covered and who was at fault. Fault is important because it can affect how much compensation you get and whether your premiums go up. And fault can be shared.
Note that “no-fault insurance” doesn’t mean fault isn’t important. It means that regardless of fault, you deal with your own insurance company rather than going after the other driver’s company.
No-fault makes the process simpler and often faster if your accident is with someone who doesn’t have insurance. Ontario, Nova Scotia, New Brunswick, Quebec, Prince Edward Island, and British Columbia have no-fault insurance.
From there, your insurance company will decide whether your car is a write-off or can be repaired. If the latter, you should be able to choose where to get the work done as long as the estimate is approved by your insurer.
What If You’re The One Without Insurance?
You’ll have to pay for all of your own repair and medical costs. You may get sued by the other driver or their insurance company, and it will be difficult for you to buy auto insurance in the future. Not to mention the fine you’ll face. Driving without insurance is never worth the risk.
