Driving Without Insurance in Ontario: Fine, Licence and Vehicle Penalties

Being charged with an insurance offence is stressful. This guide reads the penalty provisions of the Act and explains them in plain language. It is general education, not advice about a particular charge.

What is the fine for driving without insurance in Ontario?

Short answer: the statute sets a minimum and a maximum, and the range is higher for a repeat conviction. For an owner or lessee convicted under s. 2(3) of the Act:

On top of the fine, the person's driver's licence "may be suspended" for up to one year (s. 2(3)). The word "may" matters: suspension is a possible consequence, not an automatic one. These amounts are as of the date of this article; confirm the current amount before relying on them.

What the offence is and who can be charged

Section 2(1) says that, subject to the regulations, an owner or lessee cannot drive the vehicle on a highway, or cause or allow it to be driven there, unless it is covered by automobile insurance. A "lessee" here means someone leasing or renting for 30 days or more (s. 1(1)).

Two points follow from the wording:

1. Owners and lessees. The offence and the fine range in s. 2(3) are written for owners and lessees. That includes someone who allowed another person to drive the vehicle.
2. Drivers who are not the owner. The section is not worded around a borrowed-car driver as such. Whether a different charge applies to a driver in that position is something a lawyer would need to review against the actual charge.

A vehicle can also be treated as uninsured even if a policy exists. While an excluded driver named on the policy is operating it, the vehicle is deemed uninsured for the Act unless that driver is a named insured on another contract (s. 1(3)).

What counts as "insurance" under the Act

The Act defines automobile insurance as coverage against liability for bodily injury, death or property damage caused by a motor vehicle. It must insure at least to the limit required by s. 251 of the Insurance Act, provide the statutory accident benefits, and provide the benefits prescribed under s. 265 of the Insurance Act, a section that deals with uninsured and unidentified automobile coverage (s. 1(1)). Section 251(1) of the Insurance Act sets the minimum liability limit at $200,000 per accident, exclusive of interest and costs.

The insurance card requirement

Separately from s. 2, anyone operating a vehicle on a highway must keep an insurance card in the vehicle at all times and hand it over for reasonable inspection when a police officer asks (s. 3(1)). An excluded driver must carry a card showing they are insured under another contract (s. 3(2)). The penalty for contravening s. 3 is a fine of up to $400 (s. 3(3)), as of the date of this article.

After an accident, an operator who is directly or indirectly involved must, on request from anyone involved, disclose the particulars of the insurance contract. Those particulars include the insurer's name, the policy number and the effective and expiry dates (s. 4). Failing to do so carries a fine of up to $400 (s. 4(3)); confirm the current amount.

Licence suspension and vehicle impound

Beyond the fine, the Act describes these consequences after a conviction under s. 2(3):

• Licence suspension. A justice may suspend the licence for not more than one year (s. 2(3)). If the justice does so, the licence is taken and sent to the Registrar (s. 2(4)). Refusing or failing to surrender it when required by a police officer is an offence with a fine of up to $200 (s. 2(5) and (6)).
• Impound. The justice may order the vehicle seized and impounded for not more than three months (s. 2(7)).
• Storage costs. Care and storage costs are a lien on the vehicle, which can be enforced through the Repair and Storage Liens Act (s. 2(8)).
• Release on security. The vehicle may be released to the convicted person if security satisfactory to the justice is given that it will not be driven on a highway during the impound period (s. 2(9)).
• Restitution. Section 14(7) lets a court that convicts a person of an offence to which that section applies order compensation or restitution in addition to any other penalty. Whether and how it applies to a particular charge is something a lawyer can confirm.

Related offences: false cards and false statements

Some conduct is treated more seriously than simple lack of insurance. Having, using, selling, giving or distributing a false or invalid insurance card that the person knows or ought to know is false or invalid is an offence under s. 13.1, as is producing for inspection other evidence of insurance that the person knows or ought to know is false or invalid. The fine is $10,000 to $50,000 on a first conviction and $20,000 to $100,000 on a later one (s. 13.1). No person may make a statement they know or ought to know is false when certifying, for a permit application, that a vehicle is insured (s. 13(11)). For an owner or lessee, contravening that rule carries the s. 2(3) penalties (s. 2(3)(a)). The same penalties apply to an owner or lessee who shows an insurance card to a police officer, when asked, that purports to show the vehicle is insured when it is not (s. 2(3)(b)). Nobody may apply for a permit to be issued, validated or transferred unless the vehicle is insured (s. 13(1)).

How insurance status can be proved

In a prosecution under ss. 2, 13 or 13.1, a statutory declaration from a person identified as an insurer's officer or employee is admissible as proof, absent evidence to the contrary, that a vehicle was or was not insured by that insurer on the dates given (s. 13.2). That is one reason the exact policy dates and any cancellation notices matter. When a policy ended is covered in our guide on car insurance cancelled or lapsed before an accident.

How long after the offence charges can be laid

Proceedings for the offence in s. 2(1) (and the related offences in s. 2(3)(b) and s. 13(11)) may be started within three years after the date of the alleged offence (s. 2(10)). Whether a particular charge was laid in time is something a lawyer can review.

The civil side

A fine is not the only possible exposure. If an uninsured collision causes injury or damage, civil claims may also follow. Our guide on being sued after a car accident with no insurance explains that process, and the guide on accident benefits covers accident benefits, which are tied to insurance coverage.

When it is worth talking to a lawyer

Legal advice is often sought in situations such as:

• An offence notice or summons has been received, with a court date or a deadline to respond.
• The insurer says the policy was cancelled or had lapsed, and the dates or notices look uncertain.
• The charge involves an insurance card, or a certificate given to the Ministry of Transportation.
• A licence suspension or vehicle impound is possible or has been ordered.
• The same collision has also produced a lawsuit or an insurer's claim.

What to gather

• The offence notice, summons or ticket, and proof of when it was received.
• The policy, insurance card, renewals and any cancellation or non-payment letters.
• Bank or payment records for premiums.
• Vehicle ownership, registration or lease documents.
• Any police report or paperwork from the roadside or the collision.