Do I need car insurance?

Do I need to have car insurance?

In Ontario if you have a drivers’ license and own a car, you must have a car insurance policy before you can drive that car off of your driveway. On top of that, everyone who lives in the same house as you must either:

1. Be included on that insurance policy, or
2. Have their own insurance for their own car, or
3. Sign what is called an excluded driver form (OPCF 28) that states they are not allowed to drive your car and the insurance company will not pay any claim resulting from them driving your car. 

Although you need to have insurance in order to drive, insurance companies only require you to have certain coverage. These include third party liability and accident benefits. You are always free to waive coverage that would pay for damages to your own vehicle or to replace your vehicle if stolen or vandalized.

The reason insurance companies (and Ontario legislation) require you to have third party liability and accident benefits coverage is not to protect you, but to insure that everyone around you (drivers in other cars, pedestrians, passengers in your car, etc.) are protected when you are driving.

If you plan on parking your car and not using it, whether it be a seasonal car or you are just garaging it until it is sold, you do not need to have all this coverage. You can either choose to not have any insurance on the car (not advised), or you can insure it for fire, theft and vandalism only; however, the second you plan on driving that car off of your driveway you need to have third party liability and accident benefits coverage for that car, yourself and anyone else in your house who has a drivers license.

Driving without insurance is a major offense and when you get pulled over; your car will be towed.