What Happens If My Car Gets Hit By Somebody Who Doesn’t Have Insurance?

In Nova Scotia, all licensed vehicle owners are required by law to have auto insurance coverage for Liability Coverage, Direct Compensation, Uninsured and Unidentified Automobile Coverage, and Accident Benefits Coverage. But unfortunately, not everyone plays by the rules. In 2023, approximately 5% of drivers in Nova Scotia were uninsured according to the Insurance Bureau of Canada. Accidents happen, and sometimes you may be involved in a collision with an uninsured driver. 

What Is An Uninsured Driver?

An uninsured driver is someone who is driving a car without carrying the minimum mandatory coverage. In Nova Scotia, it is illegal to drive without insurance. When severe accidents involving uninsured drivers occur, it can lead to higher out-of-pocket costs for victims.

There are some serious penalties and fines for any driver caught without insurance. The penalty for the first offence is around $2000 to $4000, increasing to $3000 up to $5000 for additional offences. There could also be license suspensions and the uninsured vehicle could be impounded for ninety days. 

What If I Am Injured By An Uninsured Driver?

Under the Nova Scotia Insurance Act, every car insurance policy includes coverage for damages caused by an uninsured or unidentified driver. This part of the policy is referred to as Section D. Under this section of the policy, your insurance provider will pay your claim for injuries or a loss caused by an uninsured driver or an unidentified driver (hit and run accident). As of 2024, The minimum Section D coverage limit for Nova Scotia policyholders is $500,000. Section D coverage only takes effect if no claim can be made against the at-fault driver’s insurance policy. 

Injuries 

If you or your passengers are injured in an accident involving an uninsured vehicle, Section B of your policy will generally provide coverage. This section is commonly referred to as Accident Benefits or No-Fault Benefits. Accident Benefits under Section B not only cover up to $50,000 in medical expenses for the recovery and treatment of injuries sustained in a motor vehicle accident, but also provide coverage for rehabilitation services and psychological counselling. This is true regardless of who is at fault.  

Damages 

If your vehicle was damaged in a car accident with an uninsured or unidentified driver, Section C of your policy will cover the costs of repairing your car. You might be required to pay a deductible when filing a claim. The amount you pay will depend on your insurance. It’s advisable that you review your Section C coverage details to understand the extent of coverage and any applicable deductibles. 

Hit and Runs 

Accidents with unidentified drivers involve someone striking you or your car and fleeing the scene (a hit and run). Similar to accidents involving uninsured vehicles, Section D of your car insurance policy steps in to act as the unidentified driver who is at fault to cover your injuries or losses.  In hit-and-run scenarios, prompt reporting and thorough documentation can significantly aid in the claims process, even if the other driver is unidentified.

How to File a Claim if the Other Person Doesn’t Have Insurance

The steps to file a claim for an accident involving an uninsured or unidentified driver are the same process you would go through with a regular claim, with a few exceptions. You have 30 days to file a Section D claim with your insurance provider. According to the Nova Scotia Insurance Act, failing to file within this timeframe can result in denial of your claim, regardless of the accident details.

Your insurance company will also require you to file a police report within 24 hours of the accident. To prevent delays in getting coverage, it’s recommended to contact your insurer as soon as the accident occurs. Generally, insurance companies will ask for quick notice so they can start an investigation and try to find the unidentified driver. If they find the driver, and the driver is insured, the at-fault driver’s insurance company will have to compensate you for injuries or losses. 

In some cases, the person injured in a collision caused by an uninsured driver may not have access to their own insurance coverage. There is an option for the injured victim to file a claim with the Facility Association of Nova Scotia. The Facility Association is required under the provincial Insurance Act to step into the shoes of the at-fault driver to provide coverage from the Uninsured Automobile Funds in Nova Scotia. Coverage provided by The Facility Association is available to those who are not able to obtain satisfaction for damages under an auto insurance policy; those who do not have other insurance; and those who do have other insurance, but it is inadequate. In other words, The Facility Association is the insurer of last resort to provide coverage when no other option is available.

Why Do I Need to Hire a Car Accident Lawyer?

Just because you suffer injuries in an accident involving an uninsured or unidentified driver does not mean your insurance company will automatically accept your claim. Your insurer is permitted to (and likely will) legally contest your entitlement to compensation. As the injured party, it is your responsibility to prove that the uninsured or unidentified driver was negligent, and this negligence caused your injuries. If your insurance provider does not consider the uninsured or unidentified driver responsible for the accident, they will dispute your claim for compensation. An insurance company can also deny a Section D claim if notice isn’t provided within 30 days. 

Fortunately, your right to compensation isn’t solely in the hands of your insurer. It is the role of a judge (not an insurance adjuster) to decide whether your claim can be forfeited because of missed time frames. Insurance companies will also look for any opportunity to lower the value of your claim or deny your claim altogether. An experienced Halifax car accident lawyer (also called an insurance claim lawyer) will review your claim and advise you on options for negotiating a fair settlement. 

It’s important to stay informed about updates to government laws and regulations when it comes to insurance claims and car accidents. In 2024, Nova Scotia introduced several updates to the Insurance Act, including increased penalties for uninsured driving and enhanced support for victims of hit-and-run accidents. Your lawyer can ensure that you receive compensation in accordance with the latest laws of your jurisdiction.

Contact a Halifax Car Accident Lawyer Today

Our dedicated car accident lawyers at Valent Legal understand the devastating impact a car accident injury can have on your physical and emotional state. With years of combined legal experience, our team is well-equipped to handle cases involving uninsured and unidentified drivers. We can help you manage your claim, negotiate with insurance companies, gather evidence, and represent your best interests in court to help you pursue the compensation you deserve.

The insurance regulations and motor vehicle laws in Nova Scotia are complicated. Our team of personal injury lawyers has the knowledge and experience to help you pursue the compensation you are legally entitled to. This way, you can begin to recover and reclaim your life. To schedule a consultation, contact our Halifax car accident lawyers today.