Regardless of the type of motorized vehicle you drive, be it cheap or expensive, old or new, you should always, always, have proper insurance for it. There are so many reasons why automobile insurance is vital for every motorist, the most important of which are listed below.
Automobile Insurance Is Mandatory
If you are a resident of Ontario, then you are obligated to carry no less than a liability policy limit of $200,000 on your vehicle. This regulation has actually comes in the form of a provincial legislation by the name of CAIA, or The Compulsory Automobile Insurance Act. Should you neglect to obey by this legislation, then you will be met with a fine. The first time you are caught, this fine can be anywhere between $5,000 and $25,000. And if you are caught again, that amount doubles to any sum between $10,000 and $50,000. The fine will remain between these two sums for any other time you are caught after that. Even if that fine scared you into submission, you will still be met with much higher insurance rates than if you had simply obeyed the legislation to begin with. It is important to talk with your Personal Injury Lawyer in Waterloo to know more.
Without Insurance, You Are Unable To Sue The At-Fault Driver In The Event of An Accident
If you are driving without automobile insurance, you are automatically forfeiting your right to file a lawsuit against any other motorist in the event of a collision. Yes, even if the other driver is fully liable for causing the accident, and thus also any injuries or losses you may have suffered. You don’t even have to have been convicted of driving without insurance to lose this right.
As a result, you would be left without insurance and without the means of obtaining compensation for your medical and rehabilitation bills, your property damage, your lost wages, and any other accident-related expenses that may come your way. This is why it is so important to only drive a vehicle if you know that it is covered by insurance.
Statutory Accident Benefits Are Limited For Drivers of Uninsured Vehicles
Statutory accident benefits, which are more commonly known as no fault benefits, work together with the tort system when it comes to situations in which a driver’s negligence caused a collision. Because while the liable driver is entitled to no fault benefits, they may also be sued by other involved parties for compensation.
However, if you were driving an uninsured vehicle, you have no right to sue the liable driver and your no-fault benefits will be heavily limited, as long as it is within reason to believe that you were aware of the uninsured state of the vehicle you were operating.