In Ontario, all drivers have a legal obligation to hold a valid car insurance policy before operating a motor vehicle. However, it is not uncommon for individuals to drive with an expired policy or without any valid insurance at all. Even when drivers do have insurance, it is possible that their coverage will be insufficient to cover the damages suffered by another motorist in an accident for which they are at fault.

In a recent Ontario case, Co-operators v. Hollands, 2024 ONSC 3873, the court determined that a driver did not have car accident liability coverage at the time of an accident. This blog post will explore the key findings from this case and will discuss the implications of a personal injury claim where the responsible driver does not have car accident liability coverage.

Two Passengers Injured in Car Accident Involving Uninsured Driver

The defendant (“Hollands”) was involved in a motor vehicle accident that injured two of his passengers. As a result, the passengers brought personal injury claims against Hollands.

Hollands notified his presumptive insurer, Co-operators Insurance, who claimed that Hollands did not have liability coverage when the accident occurred. As a result, Co-operators sought a declaration from the court that Hollands was uninsured and, thus, they were not required to defend him in relation to the personal injury claims.

Hollands opposed the Co-operators application, claiming that he did have car accident liability coverage at the time of the accident.

Personal Injury Claims and Car Accident Liability Coverage

In Ontario, car owners and drivers must carry valid car insurance (or be covered under another person’s policy – for example, if you are driving a car owned by another person). The penalties for driving without valid car insurance can be steep, and may involve significant fines, the suspension of your driver’s licence, and higher premiums.

Typically, when an insured owner or driver is involved in a motor vehicle accident and faces a personal injury claim from another party, their car insurance will cover the costs associated with the claim. However, if the driver does not have car accident liability coverage, they may be personally liable for the injured parties’ claims (i.e. they may end up paying out of pocket for any resulting damages).

Court Concludes Defendant Had Cancelled Insurance Before Accident

Co-operators claimed that Hollands had called to cancel his liability coverage a few days before the accident occurred. Hollands admitted that, while he had called Co-operators to cancel his liability coverage before the accident, he had intended that the change to his car accident liability coverage to become effective at a later date, after the accident.

The Court was asked to determine whether Hollands had, in fact, called Co-operators to cancel his car accident liability coverage, and to determine whether Co-operators had complied with the statutory requirements that would make the cancellation legally effective, including providing Hollands with the required policy change documents.

Based on the evidence provided at trial, the Court found that Hollands had cancelled his liability coverage before the accident and that Co-operators had complied with the statutory requirements. As a result, Hollands was found not to have valid car accident liability coverage in place at the time of the accident.

Personal Injury Claims Involving Uninsured Drivers

The case above demonstrates that car accidents involving uninsured drivers do happen—so, what happens when you are involved in a personal injury claim where a driver is uninsured?

Uninsured Automobile Coverage

Often, drivers who are injured by an uninsured driver may rely on their uninsured automobile coverage to seek compensation for any resulting losses or injuries. Uninsured automobile coverage is mandatory coverage designed to protect personal injury claimants who are injured in an accident when the negligent party was uninsured or flees the scene of an accident. In these instances, the injured party can file a claim with their insurer and seek compensation through their own uninsured automobile coverage.

Motor Vehicle Claims Fund

As a “last resort”, Ontario’s Motor Vehicle Accident Claims Fund provides compensation for individuals who are injured in motor vehicle accidents where none of the parties involved had car accident liability coverage (for example, where a passenger without insurance coverage is injured in an accident involving an uninsured driver). However, a claimant seeking damages for lost or damaged property can only apply for compensation if the owner and/or driver of the vehicle can be identified.

Tips for Personal Injury Claimants Involved in Accidents with Uninsured Drivers

Car accidents are stressful and if you are involved in an accident with an uninsured driver, you should not have to worry about whether you will be able to obtain the compensation you need to move forward. Luckily, there are alternative options available to victims of uninsured drivers, such as uninsured automobile coverage and the Motor Vehicle Accident Claims Fund.

If you find yourself in this situation, consider the following tips to help document what has occurred and minimize the stress involved in an accident with an uninsured driver:

• Contact the police: It is important to notify the police if you are the victim of a hit-and-run, an unidentified driver, or an uninsured driver. This ensures that the accident is documented and can help the police locate the driver or obtain the necessary information for your claim.
• Document the accident: It is important to document the scene of the accident, if it is safe to do so, including damage to your vehicle. While it is wise to take photos and obtain evidence relating to any motor vehicle accident, this evidence can be especially critical when you are the victim of a hit-and-run or uninsured driver.
• Speak with an experienced motor vehicle accident lawyer: Accidents involving uninsured or unidentified drivers can be complicated, especially when it comes to recovering compensation. Working with an experienced personal injury lawyer will help you better understand your rights and can explain the steps involved for resolving the matter. Your lawyer will also help you prepare a strong case and strategy in order to advance your claim and maximize your potential compensation.

Contact the Car Accident Lawyers at Campbell Litigation for Skilled Representation in Claims Against Uninsured Drivers

The trusted team of personal injury lawyers at Campbell Litigation in Waterloo have extensive experience with all types of motor vehicle accident claims, including those involving uninsured and unidentified drivers. We know that the claims process can be confusing and overwhelming, which is why we manage your case and allow you to focus on your health and recovery. We provide personalized legal advice tailored to your circumstances and ensure that your rights are protected until a resolution is reached. To discuss your claim with an experienced motor vehicle accident lawyer, call us at 519.886.1204 or contact us online for an initial consultation.