Despite the fact that it is mandatory for drivers to have car insurance across Canada, there are still those who drive uninsured, underinsured, or even flee the scene of an accident they caused. Since this can (and does!) happen, it’s crucial to have a good car insurance policy in place, specifically one that includes uninsured motorist coverage, to protect yourself from the financial burden caused by someone else’s negligence.
So, what exactly is uninsured motorist coverage? Is it mandatory, and how does it differ from collision and comprehensive coverage? If these are the questions you’re asking, you’re in the right place as this article contains the answers and more.
What is uninsured motorist coverage?
Uninsured motorist coverage is designed to protect you and your passengers if you’re involved in an accident with a driver who is at fault but either uninsured or unidentified (hit-and-run). While it is mandatory in some provinces and territories in Canada, it is not required everywhere. For those with uninsured motorist coverage, it can help pay for medical expenses, lost wages, and legal fees. However, for damage to your car or personal belongings in the vehicle, the at-fault driver must be identified. If they are not, it is considered a hit-and-run, and the repairs or replacement of your vehicle would be covered under collision coverage, which is optional unless required by a lender.
Is uninsured motorist coverage required?
In some provinces and territories, you are required to have uninsured motorist coverage, while in others, public insurance plans may address related needs. For example, uninsured motorist coverage is mandatory in Ontario and is included in every car insurance policy, alongside other mandatory coverages such as third-party liability and direct compensation property damage.
In Quebec, on the other hand, every Québec resident is automatically covered by the province’s public automobile insurance plan (managed by the Société de l’assurance automobile du Québec, or SAAQ) in the event they get injured or killed in a car accident, regardless of who caused the accident. This includes medical and legal costs and compensation for lost income.
As for any vehicle damage, it is not covered under the public plan. Drivers are required to purchase a car insurance policy from a private insurer, that includes Section A: Civil Liability with a minimum coverage limit of $50,000. This coverage protects against damages you may cause to another person’s property or vehicle. The Groupement des assureurs automobiles (GAA) notes that if you’re not at fault in a collision, damage to your vehicle may be eligible for compensation, depending on the terms and limits of your private insurance policy.
What does uninsured motorist coverage cover?
If you live in a province or territory where uninsured motorist coverage is available and you have it, you can rest easier knowing you won’t have to shoulder the financial burden caused by someone else’s lack of insurance or accountability. That’s because uninsured motorist coverage typically covers you (the driver) and your vehicle’s occupants for the following:
- Medical Expenses: Covers medical bills resulting from injuries sustained in an accident with an uninsured driver (ex. rehabilitation, therapy, and treatment costs)
- Legal Expenses: Covers the legal costs if you need to take legal action following an accident with an insured driver (ex. lawyer fees, court costs, settlement negotiations)
- Lost Wages: Covers your income if your injuries from an accident with an uninsured driver prevent you from working
- Property Damage: Covers damage to your vehicle or personal property caused by an uninsured driver (ex. repairs to your car, replacement of valuables damaged inside the vehicle)
Is there a deductible for uninsured motorist coverage?
Yes, if you file a car insurance claim that involves an uninsured motorist, there will usually be a deductible you have to pay first in order to be compensated. The exact amount of that deductible, however, will depend on your specific policy. To check if you have uninsured motorist coverage and if so, what the amount is, refer to the policy documents your insurance provider sent to you when you bought your car insurance policy.
Uninsured motorist vs. collision vs. comprehensive coverage
If you’re wondering whether you need uninsured motorist coverage when you already have collision and comprehensive coverage, it’s essential to understand the differences between these three types of car insurance coverage.
Uninsured motorist coverage
- Applies to accidents caused by uninsured or unidentified drivers
- Typically covers medical expenses, legal expenses, lost wages, and property damage you or your passengers sustain
- Mandatory in some provinces and territories
Collision coverage
- Applies to at-fault accidents with another vehicle, collisions with a stationary object, collisions with road hazards, hit-and-runs, and rollovers
- Typically covers the cost of repairing or replacing your vehicle regardless of fault, up to your policy’s limit and subject to your policy’s terms and conditions
- Optional, unless required by a lender for a financed or leased vehicle
Comprehensive coverage
- Applies to non-collision-related incidents that damage your vehicle, like fire, theft, vandalism, severe weather, and falling objects
- Typically covers the cost of repairing or replacing your vehicle, up to your policy’s limit and subject to your policy’s terms and conditions
- Optional, unless required by a lender for a financed or leased vehicle
