All drivers in Canada are required to have vehicle insurance to operate their vehicles on the roads. It is important to have car insurance since it will cover liabilities that may arise after an accident irrespective of fault. Even drivers that follow all the rules of the road are faced with the risk of getting into accidents with uninsured drivers.
The consequences of not having car insurance may be utterly devastating. You may end up meeting all medical costs, compensation, legal, and any other associated cost out of your pocket. These costs may run into hundreds of dollars for damages to other parties. Furthermore, you may not qualify for compensation for your economic and non-economic losses for failure to take out vehicle insurance.
There are several different policies that you can take out such as liability insurance to pay for injuries suffered by other people when you cause a crash. Other types of coverage include medical payments coverage, collision coverage, and underinsured/uninsured motorist coverage to help with payments for damages and injuries if an accident occurs.
Make sure you have car insurance to avoid facing an uphill battle to get compensation for damages and injuries as a result of an accident. In the majority of jurisdictions, it is illegal to drive without valid car insurance.
What Happens if an Accident Occurs when Uninsured?
The simple truth is that driving without valid insurance will pose a significant problem when seeking compensation for injuries suffered and damages. Even when the other party is at fault for the accident, some regulations severely limit the amount you can recover for damages and injuries since you were an uninsured motorist. For example, uninsured drivers cannot seek compensation for economic damages from the other driver’s liability policy i.e. if the other driver was at fault for the accident. You can only seek damages for your medical bills and not for non-economic losses such as physical pain, mental suffering, lost wages, and loss of quality of life. The reasoning here is that if you didn’t have the required auto insurance to provide full compensation to the other person, you should not be in a position to claim the full benefits of another person’s insurance when you become a victim in a car accident.
Take note of the fact that there are legal penalties for driving without insurance which can range from the suspension of a driving license to incurring hefty fines. Penalties will apply irrespective of whether you are at fault for the accident or not. The penalties both criminal and administrative will pale in comparison to the large bills and civil liabilities you are likely to incur.
If you were at fault for the accident and didn’t have insurance, lawsuits are likely to be filed directly against you for damages caused. You will be staring at financial woes in the form of medical bills for personal injuries, injuries to other people, and property damage. Your assets and property will be at risk of being attached and sold to help recover the damage caused. You will also be facing legal bills since you will require a lawyer to defend your case. There’s no defence in court that you cannot pay the prescribed amount if you are found liable. A judgment will be entered against you and anything that you own can be attached to recover the amount and may include garnishing your wages where possible.
Immediately after the accident, Surex recommends following these tips if the other driver is at fault and uninsured.
Call the Police: It is always a good idea to call the police irrespective of where the other driver is insured or not. The presence of police at the accident scene is more important if the driver is uninsured. Their report will come in handy in helping you get all your expenses covered. The report will also make the claim process simpler and smoother.
Avoid Taking Money: The uninsured driver will often try to offer cash to settle the issue and avoid legal repercussions facing them. Do not accept the cash offer since it will be too early to know the actual damages and injury costs. Even when it looks like a good deal, do not accept the money.
Collect and Swap Information: Get the name, contact, and vehicle details of the other driver even if they don’t have car insurance. While still at the accident scene, ask for the details of any witnesses who will come in handy in providing statements to smooth the claims process.
The information to collect includes: make and model of the vehicle, the time of the accident, the exact location of the accident, and the name and badge number of the responding police officer. Note down any other important details that you observe and think will help with the claims process.
Take Pictures: Take the images of your damaged car as well as that of the other vehicle. Ensure that you have captured traffic signs, license plates, and the direction of travels of cars involved in the accident. Any other pertinent details can be photographed since they can help during the claim process.
We help people find the affordable car insurance that fits their needs and budget. You shouldn’t be driving without insurance. Some people will say insurance is too expensive or worry about their poor driving record impacting their ability to find affordable car insurance policies. Do not worry about lapses in your car insurance coverage history since there is high-risk auto insurance for high-risk drivers. Even though it will cost more than standard insurance policies, it is important to have yourself fully covered to avoid incurring penalties and other huge personal costs.