Having the proper insurance coverage is crucial when it comes to saving yourself money in emergencies. Not to mention, it’s illegal to drive without it in Canada. However, it does much more than just protect you in the event of an accident. In fact, there are many instances in Ontario when it becomes mandatory to show proof that you are insured. Most of these instances can get you into heavy trouble with the law if you cannot show the proper paperwork. Luckily, isure has you covered with a list of situations where you are required to show proof of insurance and how you can obtain it. This way, you will never be caught in a tough situation without it!
How can I get proof of insurance?
Obtaining proof of insurance will differ, depending on the type of insurance you need. The most common proof of insurance in Canada is what is known as the “pink slip,” which has all of your relevant insurance information. This is kept in your car at all times and given to you upon first receiving an insurance policy. As of 2020. the ability to make your pink slip electronic has made showing proof of insurance a lot easier. On top of easy accessibility, electronic pink slips also have features that prevent editing and fraud.
When it comes to other types of insurance, such as home policies, many websites, like myproofofinsurance.ca make organizing all of your insurance documents easy and electronically, instead of carrying around binders and folders filled with paper. Having your insurance papers handy will help make the following mandatory situations much easier:
1. Getting into a car accident
This is most likely the situation people think of first when needing to show proof of insurance. Having insurance during an accident is extremely important and also the law. Upon getting into a car accident, trading insurance information with the other driver is one of the first things that should be done. You will need to share the following:
- phone number
- vehicle permit number
- vehicle information
- insurance information
It is also crucial that you gather the same information from the other person or people involved in the accident, no matter who is deemed at fault. You should also be prepared to share the above information with a police officer if the accident is serious enough. It is also very important to call your insurance company to inform them of the accident and ask about the next steps you should take.
2. Getting pulled over or stopped by police
For whatever reason, if you find yourself being pulled over by the police, it is crucial to have your insurance on-hand. This also takes place during a traffic stop, as well. Having proof of your insurance is always required when driving a car, so having a copy with you in case you are pulled over is very important in order to save yourself from trouble. If you are caught without insurance, fines can range from $5,000 up to $25,000 for your first offence. From there, they can go as high as $50,000! So, make sure you have proof of insurance on you whenever you get behind the wheel, and keep it in an easy-to-find place.
3. Renewing your licence and registering a vehicle
Another instance when it is mandatory to provide proof of insurance is when you are renewing your licence. Without valid insurance, you are unable to renew your licence or register your vehicle. Failure to tell the truth or editing details when providing insurance proof can land you a hefty fine up to $25,000. When you are renewing your licence, the government checks your vehicle’s VIN (Vehicle Identification Number) to make sure you are covered. Your VIN is a unique number that is assigned to your vehicle that will show your insurance information from your provider. As mentioned above, Ontario has compulsory automobile insurance that extends to more than just cars! Similar to a car, having a motorcycle or moped registered with the government requires proof of insurance. In conclusion, having your insurance on-hand when renewing your licence or registering a vehicle is crucial.
4. Purchasing a new or used car
Technically, you are able to purchase a car from another person or a dealership without having insurance. However, with no insurance, this is as far as you can get in Ontario. In order to proceed and get your car on the road, you are going to need to show proof of insurance in order to register your car and get licence plates for it. Additionally, purchasing a car without any insurance can be difficult, considering you wouldn’t be able to drive it home from the dealership. This is why proof of insurance may be mandatory when purchasing a new or used car.
5. Driving your boat
When it comes to insurance, boats are quite different from a car or motorcycle. It is not required by law to have your boat insured, and you can use it without purchasing insurance. However, depending on where you want to use your boat, your options may be quite limiting. Many marinas within Ontario require proof that your boat is insured before you are able to store or use your boat there. Furthermore, if you are financing your boat, your lender will likely require you to show proof of insurance before loan approval. Most boat insurance claims involve collisions with submerged objects. When this happens, it will generally require a motor replacement, which can be quite costly.
If you are in need of boat insurance, contact isure today for a quote!
6. Advancing a mortgage
Though it is not impossible to have a mortgage on a home without insurance, it can make things quite difficult! It is not required by law, but many mortgage lenders will require proof of insurance to make advancements on mortgages. Many landlords will also ask to see tenants insurance before being able to move into a rental property. On top of this, many condo corporations and lenders require proof of insurance before you move into your unit. Since your home is most likely your biggest investment, having insurance to cover any damage or burglary is absolutely crucial!
Remember, if you are searching for any type of insurance, get a non-obligation quote with isure today.