In Alberta, more and more people are getting caught driving without auto insurance. When you do this, you’re not only violating the law, you’re also putting yourself at serious financial risk. If the police catch you driving without car insurance, you’ll have to pay steep fines, and if you’re found at fault in an accident then you’ll have to pay the full costs of the bodily injury and property damage claims yourself. Additionally, your insurance rates will increase and you may lose coverage permanently from certain insurance companies.
What are the consequences of driving without insurance?
All drivers in Canada are required to insure their vehicles. When purchasing a new car, you must obtain auto insurance before driving it off the lot. There is no grace period when it comes to insuring a new car.
If you’re caught driving an uninsured vehicle, you’ll have to pay fines for breaking the law. In Alberta, you’ll be fined a minimum of $2,875 the first time you’re caught driving without insurance. In you’re caught driving without insurance for a second time within five years of the first offense, you’ll face a minimum fine of $5,000 up to $20,000. Failure to the pay the fines could result in jail time.
The high costs of getting into an accident without insurance
If don’t have car insurance and are involved in a collision for which you are subsequently found to be fault, you could be in serious trouble. Without an insurance company to cover the costs of property damage and bodily injury, you’ll have to pay for these expenses out of pocket. In many cases, you’ll end up having to pay tens of thousands of dollars in vehicle repairs and medical bills.
Many uninsured drivers flee the scene of an accident to avoid paying for the damage and being caught without insurance. However, the consequences for being a hit-and-run driver are even more serious—depending on the severity of the accident, you could face up to five years in prison and up to 10 years if anyone was injured.
Not having car insurance drives up your insurance rates
Even if you only drive without insurance for a short time, it can affect how much you’ll pay for auto insurance in the future. Insurance companies can see on your driving record if you’ve been caught driving without insurance in the past and will charge you higher premiums as a result. Some insurance companies may even refuse to give coverage to drivers that have been reckless enough to drive without insurance.
Driving without car insurance isn’t worth the risks. At MBS Insurance Brokers, we offer comprehensive auto insurance policies at competitive prices to Edmonton residents. Contact us today to make an appointment or request a quote.