The law requires you to pay for any damages for which you are held legally responsible in an accident. If you are not insured and cannot pay, special funds administered by the government or the insurance industry are used to reimburse the person who made the claim against you.

Your driver’s license may then be suspended until you arrange to repay the fund. You will also be charged by the police for failing to have insurance. The penalty may include severe fines. When you purchase car insurance, you receive a Canada Inter-Province Motor Vehicle Liability Insurance Card (known as your insurance pink slip). You should keep this in your car at all times and produce it when requested by a police officer. It is honoured as proof of insurance in Canada.