Be sure you're insured

Most of us drive around confident that we have insurance coverage in the event of an accident. Unfortunately, many people find out after the fact that they don’t have the coverage they thought they had. The following paragraphs set out some of the most common situations where people find themselves without insurance coverage. A quick review might save you from making the same mistakes.

#1 – Driving with expired insurance

The minute your insurance expires you have no coverage and ICBC has no obligation at law to remind you. Unfortunately, there is no grace period so it is very important that you know when your insurance expires and be sure to renew before it does. This is true for both your driver’s certificate (your driver’s license that you carry in your wallet with your photo on it) and your owner’s certificate (the license plate on your vehicle). To avoid driving without insurance, put several reminders in your calendar and in your vehicle. Putting the expiry dates on your key chain may also be a good idea.

#2 – Providing false or misleading information to get better insurance rates

Everyone wants the lowest rate, but it is like flushing money down the toilet if you aren’t honest when you apply or renew your owner’s certificate. Know the make, model and year of the vehicle, who the principal operator is (the person who drives the vehicle the most) and how you are going to use it (pleasure, commuting, work, etc.). If you say you’re the principal operator but it is actually your 17-year-old son driving the vehicle every day, there will be no coverage in place when you need it. While the insurance agent won’t likely question you when you apply for insurance, you can bet they will investigate the truth of your statements if a claim is made under the policy. If ICBC’s investigations reveal false information, you will find yourself without coverage.

#3 – Failing to notify ICBC of a change of address within 10 days

If you move within BC, you have 10 days to tell ICBC your new address. Because your insurance premium is partially dependent on your vehicle’s primary location when it is not in use, failure to comply with this requirement can result in a denial of coverage.

#4 - Failing to provide ICBC with required information

The Insurance (Vehicle) Act gives ICBC broad powers to request and require you to provide information. In particular, section 73 of the Insurance (Vehicle) Regulation requires that you: (1) promptly give ICBC written notice, with all available details of any accident involving death, injury, damage or loss in which you or a vehicle owned or operated by you has been involved (2) immediately send to ICBC any legal document or correspondence received by you related to a claim (not including any legal documentation related to correspondence with your own lawyer) (3) cooperate with ICBC in the investigation, settlement or defence of a claim (4) except at your own cost, assume no liability and settle no claim and (5) allow ICBC to inspect your vehicle or equipment or both at any reasonable time. If you fail to comply with any of these requirements, to the prejudice (harm) of ICBC, you may also be denied coverage.

#5 – Providing false or misleading information about a claim

If you provide or cause someone else to provide false or misleading information about a claim, you have committed an offence under the Insurance (Vehicle) Act and you will be in breach of your insurance policy. The penalty for an individual who commits an offence under the Act includes fines up to $50,000 or imprisonment up to 2 years. In addition, the court can also order that you pay compensation or make restitution to the corporation for the actual loss or damage related to the offence.

#6 – Driving while intoxicated

You are deemed to be in breach of your insurance policy if there is evidence to support that while driving you were under the influence of alcohol, drugs or other intoxicating substances to the extent that you were incapable of proper control of the vehicle or you are convicted of a driving related offence under the Criminal Code. Without a conviction, it will be necessary for ICBC to prove both impairment and that you were incapable of proper control of the vehicle. You will also be in breach if you permit someone else to operate your vehicle who meets the above criteria.

#7 – Racing

If there is evidence to support that you were racing or operating your vehicle in a speed test there will be no insurance coverage. You will also be in breach if you permit someone else to race or operate your vehicle in a speed test.

Hopefully the above information is a useful reminder of some of the things to consider so that you don’t find yourself or your vehicle in an accident without insurance coverage.

Important Note: The information contained in this column should not be treated by readers as legal advice and should not be relied on without detailed legal counsel being sought.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.