What happens if you do not have the required third-party liability coverage?

Having the required third-party liability coverage is a legal obligation for all drivers in Ontario. This type of insurance protects you in the event that you are found to be at fault in an accident that causes injury or damage to another person or their property.

If you do not maintain the required liability coverage, you may incur legal penalties. These penalties typically include fines and could lead to the suspension of your driver's license and vehicle registration. Authorities take these requirements seriously as they ensure financial protection for both the driver and the public. Therefore, not having this coverage places both the driver and others at risk, contributing to legal repercussions aimed at enforcing compliance with insurance laws.

Other options are misleading because there is no provision for receiving a refund, no allowance for driving without consequence, and no possibility for insurance to provide coverage, as policies are invalid without the necessary liability components.