The cost of having no car insurance in an accident

February 8th, 2017  |  Auto

Driving without car insurance is not only a bad idea, it can come with big financial repercussions if you get caught—or worse, have an accident. Owning a car is expensive. With the costs of your monthly car payment, the price of gas per litre, and regular maintenance costs, the expense of owning a car can quickly had up. Sometimes drivers want to save on their monthly car expenses and skip on buying car insurance. However, the cost of having no car insurance in an accident is probably much greater than the cost of your annual insurance premiums.

Big fines for not having insurance

If you get pulled over (for any reason) while on the road the first thing the police officer is going to ask for is your driver’s license, vehicle registration, and proof of insurance. If you don’t have car insurance, then you’re in big trouble. The fine for driving without car insurance varies between provinces and the fine for being on the road uninsured in Ontario is between $5,000 to $25,000. Could you afford to pay that fine?

Car repairs to damage

If your car is the only mode of transportation you have, if it’s the key to your livelihood, how would you get to and from work if the car is damaged? Filing a car insurance claim takes time, but it’s a lot easier than having to pay for repairs to your car with your own money. That’s only if you have the money. The cost to repair or replace a car after an accident can quickly add up and not everyone can afford it. It would be a shame to be in an accident and lose your car at the same time because you can’t afford to repair the damages.

Injury liability to third parties

If you have no car insurance in an accident, who pays for the damages? You do – out of your own pocket. Just imagine that you’re in an accident and the other driver is seriously injured. Could you afford to pay for the doctor’s bills, hospital bills and medication expenses that they need? For many drivers, the answer is no. Insurance can include third-party injuries and that’s why it’s always a good idea to buy car insurance and be insured while you’re on the road.

Personal injury costs

Let’s put others aside for the moment, what if you were injured in a car accident. How would you pay for the medical expenses? What if the accident is serious and you need to be off work without a paycheque for several months, what would happen to your home and how would you pay the bills? Those are questions that drivers usually don’t think about because we never want to rationalize the worst-case scenario.

However, insurance was created to minimize personal financial loss in case of an accident or injury. When we put it like that how could you get behind the wheel without having insurance.

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