Nov 26, 2024
Understanding uninsured motorist coverage in Ontario
In Ontario, all drivers must carry a minimum amount of insurance. Unfortunately, there are still many people who can be found driving without insurance. For this reason, it is mandatory to have uninsured motorist (UM) to protect you financially.
In this blog we will define what this type of protection is and explain how it fits with several other types of insurance including collision, comprehensive, and direct compensation property damage policies. Some of these legal requirements, while others are additional levels of protection.
Three key takeaways about uninsured motorist coverage:
- Uninsured motorist provides drivers with protection if they are involved in an accident with an uninsured or underinsured driver.
- Ontario's mandatory uninsured motorist coverage, included on all active policies, protects drivers in accidents with uninsured or underinsured drivers.
- Ontario car insurance policies all include uninsured motorist (UM) coverage with a minimum limit of $200,000, which may or may not be sufficient depending on the accident and damages.
What’s on this page
What is uninsured motorist coverage?Is uninsured motorist coverage necessary?
Is uninsured motorist mandatory in Ontario?
What's the difference between an uninsured driver and an underinsured driver?
What do I do if I am hit by an uninsured driver?
Is uninsured motorist in Ontario the same as other provinces?
How much uninsured motorist coverage do I need?
Uninsured motorist FAQs
What is uninsured motorist coverage?
Uninsured motorist provides drivers with protection if they are involved in an accident with an uninsured or underinsured driver. It is included with car insurance quotes.
When another driver causes an accident but doesn't have an active policy to cover it, UM will help with the costs towards bodily injuries, properly damage, or lost wages. It will pay benefits to the driver and passengers involved. It will also cover the cost of repairing or replacing your vehicle and provide you with medical costs to recover from injury due to the accident.
Uninsured Motorist Protection Definition
Under Ontario’s R.R.O. 1990, Reg. 676: uninsured automobile coverage, it describes:
- Protects you if you are injured or killed by an UM or by a hit and run.
- Covers damage to your automobile caused by an identified UM.
- If you are hit by an UM while riding a bike or walking.
- When a UM is deemed responsible for an at-fault accident.
Is uninsured motorist coverage necessary?
Yes. In Canada, there are about 8 million registered passenger vehicles and an estimated 2% of all drivers on the road in Canada do not have it. UM policies ensures you are covered if you are involved in an accident with a driver who does not have an active policy. However, even with minimum requirements, you may not be protected for all damages caused by a UM. This is why it’s recommended to increase your limits.
Is uninsured motorist mandatory in Ontario?
Uninsured motorist is mandatory and is included on all active policies. Making it mandatory ensures you have protection if you are involved in an accident with an a driver who does not have active or valid Ontario car insurance.
What's the difference between an uninsured driver and an underinsured driver?
Uninsured drivers are those who don't have any car insurance at all, even the minimum required by their province. This is illegal and puts them and others at risk. Underinsured drivers are those who have some insurance, but not enough to cover the potential costs of an accident they cause. They may have the minimum required coverage, but haven't opted for higher limits. This means they may not have enough to cover significant damages or injuries.What do I do if I am hit by an uninsured driver?
If you are involved in an accident with an uninsured driver, call the police to file a report. It’s illegal to drive without it. People who drive without insurance face fines starting at $5,000. Visit your local collision reporting centre and call your insurer to open a claim and notify them you were in an accident.
Since Ontario operates under a no-fault insurance system, you will deal directly with your insurer for the claim.
Is uninsured motorist in Ontario the same as other provinces?
No, not all provinces have UM protection. The following provinces offer this type of protection:
- British Columbia
- Newfoundland and Labrador
- New Brunswick
- Prince Edward Island
- Nova Scotia
When you inquire to insurers car insurance, you'll be able to confirm what exactly is included.
How much uninsured motorist coverage do I need?
All policies in Ontario have UM limits. The minimum limit is $200,000. This may or may not be enough, depending on the type of accident and damages. Drivers have the option to increase limits by using the Family Protection Endorsement, OPCF 44R, where you can get additional protection up to $2 million.
Uninsured motorist FAQs
Since uninsured motorist protection is included in all policies in Ontario, you will be covered. Your car insurance claim will be submitted to your insurer, and you will deal with them directly.
An uninsured motorist involved in an automobile accident will face significant fines and the potential of criminal charges. Damage to their vehicle will not be covered and they will have to pay out of pocket to repair damages. Drivers that don't an active auto policy could also face a lawsuit from the other driver or insurer to seek damages.
Yes. They are two different types of protection for drivers. Collision insurance provides you with protection if you are involved in an accident or hit an object, such as a street sign, tree, etc.
It could. Even if you are not at-fault, your premium could increase after the claim. Your insurer will pay for the damages, but since they cannot recover all the costs from the uninsured driver protection, your rates could increase.
Yes. You will be required to pay a deductible when filing a claim under your UM. The amount you pay will depend on your policy.
Yes. Any property damaged or destroyed due to an accident caused by a hit and run or uninsured driver will be covered.
Increase your uninsured motorist protection
Want to learn more about your options for increasing UM limits? Contact our experts to explore your options. Call us at 1-855-550-5515.
