Uninsured motorist coverage is like insurance for auto insuranceOne of the reasons car insurance is mandatory in Ontario is so that damages to your vehicle — and any money you need to recover or adapt to injuries — is covered by the at-fault driver’s car insurance policy.
But what happens if the damage and injuries exceed what the at-fault person’s insurance policy will cover? Or what if they don’t have insurance at all, and they had very few assets to seize, so even suing them for damages wouldn’t get you anywhere? Or, worst of all, what if you’re struck in a hit-and-run, and you can’t identify the driver?
That’s when your uninsured motorist coverage would kick in.
Do you need uninsured motorist coverage?All basic car insurance policies include a $200,000 default limit of uninsured motorist coverage.
It’s not mandatory in Ontario to increase this limit, but it’s strongly recommended because of the number of highways in the province; the chances of a collision causing more than $200,000 of damage actually increase with more high-speed-limit roads.
Keep in mind that the uninsured motorist coverage policy has to cover your car and you — this includes any medical treatments, adaptive technologies required because of injury and lost wages. Depending on the circumstances, $200,000 can add up quickly.
And even though the odds may be against being struck by someone without insurance, do you really want to take that chance?