Can you drive your parents’ car without insurance in Ontario? No, you cannot drive your parents’ (or anyone else’s) car without insurance. Doing so can lead to serious financial repercussions and make it harder to get good insurance rates in the future.
Read on to learn more about the consequences of driving your parents’ car without auto insurance, how you can get listed on their policy, and what tips you should follow as a new driver.
Why Can’t I Drive My Parents’ Car Without Insurance in Ontario?
Whether you’re using your own or your parent’s car, driving without insurance is illegal in Ontario.
Under the Compulsory Automobile Insurance Act of Ontario, every vehicle must have the following kinds of coverage:
- Third-Party Liability coverage (minimum of $200,000)
- Uninsured Automobile coverage
- Statutory Accident Benefits coverage
- Direct Compensation – Property Damage coverage
Note that these are just the mandatory requirements for auto insurance in Ontario. You can acquire other types of coverage depending on your needs.
What Are the Legal and Financial Consequences of Uninsured Driving?
Driving without insurance can cost you a hefty fine of between $5,000 and $25,000 for your first conviction and between $10,000 to $50,000 for your 2nd and subsequent convictions.
Aside from paying fines, you could also be faced with a licence suspension for up to one year. Your car may also be impounded for up to three months. You can also be subjected to a 25% victim fine surcharge (VFS) in addition to the court-imposed fine. This means that you would have to pay an additional $1,250 VFS on top of your $5,000 fine.
How Does Uninsured Driving Affect My Insurance Premiums?
When computing auto insurance rates, providers look at the following factors:
- Your age and gender
- Your vehicle’s make, model, year, and safety features
- Your address
- Your driving frequency
- Your driving and insurance history, including records of claims, convictions, and licence suspension
The more demerit points, convictions, and suspensions you have, the more likely it is for insurance companies to consider you a “high-risk” driver. Since calculating insurance is all about mitigating risks for the insurer, companies charge higher premiums or even flat-out refuse to insure high-risk drivers.
Additionally, if you’re injured in an accident while driving an uninsured vehicle, you may be denied:
- Non-earner benefits
- Income replacement
- The ability to sue the at-fault driver for compensation
If you’re found to be at fault for an accident that causes injury or death, you may also be held personally responsible for any losses and medical bills.
How Can I Drive My Parents’ Car Without Auto Insurance?
While it’s illegal to drive an uninsured vehicle, you don’t need coverage for yourself if you wish to drive another person’s car, so long as they’re insured. Remember: insurance always follows the car, not the driver. This means that if you’re driving a borrowed vehicle and get into a collision, the owner’s insurance will cover the damages.
However, there are a few caveats to this. To drive someone else’s car, you must:
- Have a valid driver’s licence.
- Have express permission from the owner.
- Be listed as a secondary driver on the vehicle owner’s insurance policy, especially if you’re borrowing the vehicle frequently.
- Not be listed as an excluded driver on the owner’s policy.
- Have proof of auto insurance in the vehicle at all times — be it a paper or electronic insurance card.
If I Have Insurance For My Own Car, Can I Use It To Cover Another Vehicle?
Now, let’s say you do have auto insurance for a personal vehicle but must borrow someone else’s car. Perhaps your car broke down, you’re visiting family out of town, or you want to rent a car on holiday. Is there a way you can ensure that any accidents that happen while you’re behind the wheel won’t be charged to the owner’s insurance?
Yes, there is. You can extend your policy to cover the vehicle you’re borrowing with a provision called OPCF 27 or Liability for Damage to Non-Owned Automobiles. OPCF 27 gives you all perils coverage for non-owned vehicles, protecting the borrowed vehicle from damages caused by things like natural disasters, theft, and vandalism.
Can I Get Coverage Under My Parents’ Insurance Policy?
Yes, you can get coverage under your parents’ policy. When you get your G1 licence, your parents can add you as a secondary driver to their policy.
If you use your parents’ car occasionally — say once a month to run a few errands — your parents generally don’t have to add you to their policy. But if you use your parents’ car regularly, they should inform their insurance provider about adding you as a secondary driver to their car’s policy.
Bear in mind that when a policyholder adds a driver to their policy, insurers must do their due diligence and assess the driver’s profile and history. If you’re a young and/or new driver, this may result in an increased premium rate for your parents. This is because studies have shown that drivers under the age of 25 have a significantly higher risk of being involved in fatal accidents and impaired driving convictions.
Tips for New and Young Drivers
Due to their inexperience and increased likelihood of getting into accidents, new and young drivers face some of the highest premium rates all around. Here are some tips to stay safe on the road and get the best deals possible:
1. Follow G1 and G2 Restrictions
In Ontario, you need a Class G licence to drive a car, small truck, or van. To get to the Class G level, you must undergo a two-step process called the graduated licensing system, which takes about 20 months to complete.
The first level, or G1, requires you to:
- Be at least 16 years old
- Pass a visual exam
- Pass a written knowledge test
- Pay the licence fees
Once you have your G1 licence, you must undergo eight to 12 months of driver’s training before you can apply for the next level.
G1 drivers must also adhere to the following rules:
- No driving unless accompanied by a licenced G driver in the passenger seat. The accompanying driver must be a G licence holder for at least four years and have an alcohol level of less than 0.005% if they’re over 21 and zero if they’re under 21.
- Must not drive under the influence of alcohol (they must have a zero blood alcohol level) or cannabis
- Must not drive between 12 am and 5 am
- Must not drive on 400-series highways or expressways
It should be noted that G1 drivers are not allowed to be the primary driver on a policy. You’ll need to be added to a parent or guardian’s policy as an occasional driver.
Once you’re eligible to apply for a G2 driving test, all you have to do is pass. From then on, you must adhere to the following restrictions:
- Practice driving with your G2 licence for at least 12 months without the supervision of another experienced driver
- Keep a zero blood alcohol level and have no cannabis in your system
- Ensure you and all passengers are wearing their seatbelts at all times
- Drivers 19 and under may not drive unaccompanied at night for the first six months
If you’re caught violating any of these restrictions, you’re likely to face higher insurance costs. Keep in mind that minor convictions stay on your driving record for up to three years, while violations leading to a licence suspension can stay on your record for six.
2. Apply for a Licence As Early As You Can
Given that insurers take driving history into account when computing premiums, it pays to start early. Getting your licence the moment you come of age lets you accumulate driving experience faster, potentially helping you get more affordable insurance quotes even as a young driver later on.
3. Know What’s Covered By Your Insurance
Whether you have your own or are on your parents’ policy, make sure to review your policies and understand their conditions, exclusions, and special limits. Learn the difference between comprehensive car insurance and collision insurance and understand what accident forgiveness is and whether you can add it to your policy.
Students can also ask about special discounts, such as discounts for completing your G1 and G2 training and alumni discounts for college/university graduates. If you don’t drive very often, you can also look into usage-based insurance.
It’s important to know these things so that you know exactly what you’re paying for and what to expect in the event of an accident.
4. Choose the Right Car
Insurers are more inclined to offer lower premiums for drivers who own cars that have high safety ratings, aren’t expensive to repair, and are equipped with anti-theft features. Some insurers also offer discounts for hybrid vehicles.
If you don’t know where to start looking, check out our list of the cheapest cars to insure in Ontario.
5. Stay On your Parents’ Policy Until You Hit 25
As mentioned, drivers under the age of 25 are often faced with the highest insurance quotes due to the associated risks. So, if you want to cut costs, consider staying on your parent’s policy as a secondary driver until you hit your mid-20s. While adding you onto your parents’ policy will lead to a rate increase, it’ll still be significantly cheaper than purchasing a separate policy for yourself.
Key Advice From MyChoice
Now that we’ve learned about the consequences of driving your parent’s car without insurance, here are some insurance tips to remember before getting behind the wheel:
- You don’t need your own insurance policy to drive your parents’ car, but you will have to make sure their car is covered before taking it out of the garage.
- If you’re borrowing your parents’ car long term, add yourself to their policy as a secondary driver. This is typically cheaper than purchasing a policy for yourself, especially if you’re a new or young driver.
- New drivers tend to pay more for insurance than more experienced ones, so try to find other ways you can lower your premiums, like getting student discounts and driving a safer car.
- Always shop around for the best rates — use MyChoice to compare insurance rates across different companies.