Associated charges: Fail to Surrender Insurance Card | Permit Operation of Motor Vehicle without Insurance | Make False Statement

Under the Compulsory Automobile Insurance Act of Ontario, it is a legal requirement for vehicle owners to have liability insurance for their motor vehicles when they are driven on public roads.

Where the driver is not the owner, the driver must produce evidence of valid insurance.  Where the driver is unable to produce valid insurance, the owner maybe requried by police to prove that the vehicle was insured.

Where the driver is not the owner and the vehicle is found not to be insured, the owner maybe charged with the offence of Permit Motor Vehicle to be Operated without insurance.

The owner of the vehicle is responsible that:

• if their vehicle is being operated on the roadway, that
  • the vehicle is insured with liability insurance coverage,
    • whether or not they are actually driving the vehicle or not.

Where a vehicle is not insured, the owner must take reasonable precautions to ensure the vehicle is not operated on the roadway by other persons.

Where another person drives an uninsured vehicle on the roadway, the owner may be charged with Permit Operation of a Motor Vehicle Without Insurance.

Driving a motor vehicle without insurance is deemed a “Reverse Onus” offence in Ontario.

This means that where a police officer finds a motor vehicle being driven on a roadway, the driver or owner must prove to the police officer that the vehicle is insured.

In such cases, it’s not the responsibility of the police to prove the absence of insurance. Instead, the owner must actively demonstrate they were insured while operating the vehicle.

This content is now written in Canadian English, with an active voice, a positive tone, and in straightforward, easy-to-understand sentences.

In Canada, the penalty for driving a vehicle without insurance is  $5,000 for the first offence. If you’re found guilty again, the fines double each time. Here’s how it works:

• First Offence: Minimum of $5,000 to a maximum of $25,000.
• Subsequent Offences: Fines start at $10,000 and can go up to $50,000.

Typically, judges tend to double the minimum fine for each repeat offence. So, after a $5,000 fine, the next could be $10,000, then $20,000, and so on.

Additionally, there’s a Victim Fine Surcharge of 20% added to any fine imposed. This surcharge supports a  fund aiding victims of crime. For instance, a $5,000 fine would include an additional $1,250 surcharge, and a $10,000 fine would have a $2,500 surcharge.

When a vehicle owner is found guilty under the Compulsory Automobile Insurance Act in Canada, the judge has the discretion to suspend the driver’s licence.

This suspension can last for a period of up to one year. The judge’s decision to suspend a licence typically depends on the severity of the offence and any previous violations.

The aim of such a suspension is to reinforce the importance of adhering to the law, specifically regarding the requirement for automobile insurance.



The suspension serves as a significant deterrent, emphasizing the legal responsibility of vehicle owners to insure their vehicles. It also highlights the risks and potential consequences of driving without insurance, not just in terms of fines but also in terms of losing the privilege to drive.

This policy is in place to ensure road safety and protect all road users by making sure that all vehicles operating on public roads are adequately insured.

Where a police officer finds a vehicle being driven on the roadway without liability insurance, the police officer may seize the licence plates and remove the vehicle from the road.

This action is necessary because, to legally operate on a roadway the vehicle must be:

• Properly licensed,
• Deemed safe for road use, and
• Covered by liability insurance.

Without insurance the vehicle is not allowed to be operated on the roadway. The officer may seize licence plates where the licence plates are not authorized for use on the vehicle.

If a driver in Canada is convicted of violating the Compulsory Automobile Insurance Act, this conviction can significantly impact future applications for insurance.

Insurance companies often view such a conviction as a sign of deception or dishonesty. Where the driver doesn’t follow the rules.  This perception holds even in cases where the lapse in insurance coverage was accidental or due to a misunderstanding.

The conviction suggests to insurers that the individual may not be fully committed to adhering to legal and financial responsibilities related to driving. Consequently, obtaining liability insurance after such a conviction can become more  potentially more expensive.

Operating a motor vehicle without insurance does not result in demerit points.

Similarly, no demerit points are assigned for any convictions under the Compulsory Automobile Insurance Act.