Uninsured vehicles, beneficial ownership and the right to sue

Driving a vehicle without auto insurance coverage bars the owner from starting a lawsuit after a collision regardless of another driver’s negligence, due to the joint operation of s. 2(1) of the Compulsory Automobile Insurance Act and s. 267.6(1) of the Insurance Act.

The Compulsory Automobile Insurance Act is intended to ensure that every car operated in the province is insured. The term “owner” as it appears in s. 2(1) of this Act, in our view, cannot properly be limited solely to the “registered owner”. To interpret “owner” in that manner would permit the person with all the rights of common law ownership to avoid corresponding responsibilities of ownership. For more, click here.