What Happens When an Unlisted Driver Causes a Crash?

When an unlisted driver causes a crash in Ontario, insurance coverage generally still applies, provided the driver had the owner’s permission to use the vehicle.

However, these situations often trigger complex disputes between insurance companies regarding liability and coverage limits, leaving accident victims unsure of where to turn for compensation.

Our Toronto car accident lawyers can step in to manage these disputes, verifying coverage details and advocating for the compensation you need to recover.

Contact Preszler Injury Lawyers for a free consultation to discuss your case and how we can assist you in navigating the claims process.

Key Takeaways About Why Legal Representation Matters After Unlisted Driver Accidents in Ontario

• Permissive use usually extends coverage. Under Ontario law, if an unlisted driver had the vehicle owner’s permission to drive, the owner’s insurance policy typically covers damages caused by the accident. A lawyer can help gather evidence to prove permissive use if the insurer attempts to deny the claim.
• Statutory Accident Benefits (SABS) are available regardless of fault. A lawyer can assist with the accident benefits application, ensuring you have access to the necessary medical and rehabilitation support.
• Liability disputes are common. Insurance companies often try to shift blame or deny coverage by claiming the driver was excluded or lacked consent. Lawyers challenge these tactics by analyzing police reports and witness statements to establish who is at fault in the case.

Understanding Unlisted Drivers and Permissive Use in Ontario, Canada

In Ontario, car insurance policies typically follow the vehicle, rather than just the specific driver named on the policy.

This means that if a vehicle owner lends their car to a friend, family member, or neighbour, the owner’s insurance typically covers that driver, even if they are not explicitly listed on the policy. This concept is known as “permissive use.”

However, insurers thoroughly investigate these claims. If an unlisted driver causes an accident, the insurance adjuster will immediately look for reasons to deny coverage.

They may question whether the driver actually had permission or if the driver lived in the same household and should have been listed on the policy, but wasn’t to save on premiums.

A lawyer acts as a buffer between you and the insurance companies. By securing statements and evidence that confirm the driver had permission, legal counsel can prevent insurers from unfairly denying coverage based on technicalities regarding the driver’s status.

The “Excluded Driver” Distinction

An excluded driver is someone the policyholder has specifically signed a form to exclude from coverage, usually because that driver has a poor driving record that would make insurance prohibitively expensive.

If an excluded driver takes the wheel and causes a crash, the insurance company will likely deny third-party liability coverage for the accident. This leaves victims in a precarious position.

In these cases, a lawyer can explore alternative avenues for compensation, such as the victim’s own uninsured motorist protection in Ontario or the Motor Vehicle Accident Claims Fund.

Navigating Insurance Coverage Disputes After a Car Crash With an Unlisted Driver

When an unlisted driver accident occurs, multiple insurance policies may be involved. The vehicle owner’s policy is usually the primary source of coverage.

However, if the damages exceed that policy’s limits, the unlisted driver’s own insurance (if they have a policy for another vehicle) might act as secondary coverage.

Insurance companies frequently argue over who is responsible for paying. The owner’s insurer may claim that the driver did not have consent, while the driver’s insurer argues that the owner’s policy should pay first.

While these companies fight amongst themselves, the injured victim is often left waiting for a resolution.

Legal professionals can cut through this red tape. A lawyer can initiate legal action that forces all potential insurers to the table, identifying the correct priority of payment disputes under the Insurance Act.

This proactive approach helps prevent indefinite delays in receiving the unlisted driver accident compensation you require for your recovery.

Investigating Consent

The issue of consent is often the pivot point for these cases. Consent can be express (verbal or written permission) or implied (based on past behaviour or the relationship between the parties).

For example, if a teenager takes the family car without asking, but has done so previously without consequence, a lawyer may argue that implied consent existed.

Proving that an unlisted driver caused the accident liability often requires a detailed investigation into the relationship between the driver and the vehicle owner.

Statutory Accident Benefits (SABS) and Unlisted Drivers

Regardless of who was at fault or whether the other driver was listed on a policy, injured parties in Ontario have access to Statutory Accident Benefits (SABS). 

These benefits provide funding for medical treatment, rehabilitation, attendant care, and income replacement.

You typically claim SABS from your own insurance company. If you do not have insurance (for example, you were a pedestrian or a passenger who doesn’t own a car), you would claim from the policy covering the vehicle you were in or the vehicle that hit you.

Disputes often arise when the insurer for the vehicle involved denies the claim because the driver was unlisted. They may argue that because the driver was not authorized, the policy is void.

A lawyer can intervene in these SABS unlisted driver coverage disputes, leveraging the “absolute liability” provisions in Ontario law, which often require insurers to pay statutory benefits to innocent third parties even if the policy conditions were breached.

The Role of the Motor Vehicle Accident Claims Fund (MVACF)

In worst-case scenarios where the unlisted driver took the vehicle without consent (theft) and has no insurance of their own, there may be no private insurance policy available to respond to the claim.

When this happens, the Motor Vehicle Accident Claims Fund (MVACF) acts as the payer of last resort for victims injured in Ontario. Accessing this fund requires proving that no other insurance exists. The application process is strict and bureaucratic.

A lawyer familiar with the MVAC Fund and unlisted driver accident procedures can help manage this application for you.

They work to satisfy the Fund’s requirements that all other reasonable avenues for compensation have been exhausted, helping you access payment for your injuries when private insurance fails.

Pursuing a Tort Claim Against an Unlisted Driver

Beyond accident benefits, you may have the right to sue the at-fault driver and the vehicle owner for pain and suffering, loss of enjoyment of life, and future loss of income. This is known as a tort claim.

In a standard accident, you sue the driver. In an unlisted driver scenario, you typically sue both the driver and the vehicle owner.

The owner is vicariously liable for the driver’s negligence under Ontario’s Highway Traffic Act, provided the driver had possession of the vehicle with the owner’s consent.

Establishing Vicarious Liability

Vicarious liability is a powerful legal concept that allows you to access the vehicle owner’s insurance policy, which is often crucial if the driver has few assets or no insurance.

If the owner claims the vehicle was stolen or taken without permission to avoid liability, the burden of proof shifts to them. A lawyer can challenge these assertions by examining police reports, text messages, and witness accounts that contradict the owner’s story.

Family Protection Endorsement (OPCF 44R)

If the unlisted driver’s insurance coverage is insufficient to cover your damages, or if the insurer successfully denies the claim, leaving the driver effectively uninsured, your own policy’s Family Protection Endorsement (OPCF 44R) may provide additional coverage.

This endorsement covers the difference between the at-fault driver’s liability limit and your own policy limit. Accessing this coverage often requires a lawyer to prove that the at-fault party is “inadequately insured.”

Legal counsel can handle the complex calculations and negotiations required to trigger this coverage, ensuring you are not left out of pocket due to the other driver’s inadequate insurance.

Challenges with Household Member Omissions

A common issue arises when the unlisted driver lives in the same household as the vehicle owner, but was not disclosed to the insurance company. Insurers require policyholders to list all licensed drivers in the household.

If a spouse or child who was not listed causes an accident, the insurer may investigate for “material misrepresentation.” They might argue the policy is void because the owner lied about who would be driving.

While the insurer might cancel the policy for the owner, innocent third parties injured in the accident generally maintain protection under the “absolute liability” provisions up to the statutory minimum limits ($200,000 in Ontario).

A lawyer acts to protect the rights of the injured victim in these scenarios, arguing that the insurer’s dispute with their policyholder should not prevent the innocent victim from receiving compensation.

How To Protect Your Rights After an Auto Accident With an Unlisted Driver in Ontario

Taking the right steps after an accident involving an unlisted driver can make a significant difference in protecting your legal rights and strengthening your claim.

These practical tips can help you avoid common pitfalls and support your lawyer in building a strong case:

• Call the police and document the incident. Officers can record the driver’s identity, the vehicle owner’s details, and any initial statements. This official record can be critical if the driver denies consent or if the insurer disputes liability.
• Collect as much information as possible at the scene. Take photos of the driver’s license, insurance card, and license plate. If the driver is hesitant to cooperate, note their physical description and any details about the vehicle. Ask about their relationship to the vehicle owner, as this can clarify whether the driver had permission to use the car.
• Seek medical attention promptly. Even if your injuries seem minor, visiting a doctor or hospital creates a medical record that links your injuries to the accident. This documentation is essential for accident benefits claims and any potential legal action.
• Avoid discussing fault or liability at the scene. Stick to exchanging information and avoid making statements about who caused the accident. Insurers may later use these comments to argue against your claim.
• Contact a lawyer before speaking to insurance companies. Insurers may ask questions designed to minimize their liability. A lawyer can handle these communications, ensuring your rights are protected and that the insurers are held accountable.

If you missed any of these steps, don’t assume your case is lost. A lawyer can often address gaps in documentation or evidence by conducting their own investigation, gathering witness statements, and challenging the insurer’s conclusions.

Unlisted Driver Accident in Ontario FAQs

Does insurance cover a crash if the driver is not listed on the policy?

In many cases, insurance follows the vehicle. If the driver had the owner’s permission to use the car, the owner’s policy usually covers the damages. Disputes arise regarding permission, which a lawyer can help resolve by gathering evidence of consent.

Can I sue the owner of the vehicle if someone else was driving?

Under Ontario’s Highway Traffic Act, vehicle owners are vicariously liable for damages caused by anyone driving their vehicle with consent. A lawyer can name both the driver and the owner in a lawsuit to maximize the potential sources of compensation.

What if the unlisted driver took the car without permission?

If the vehicle was stolen or taken without consent, the owner’s insurance may not cover the driver’s liability. However, you can still claim Statutory Accident Benefits from your own insurer. For liability claims, you may need to turn to your own uninsured motorist coverage or the Motor Vehicle Accident Claims Fund.

Will my insurance rates go up if I am hit by an unlisted driver?

If you are not at fault for the accident, your insurance premiums should not increase. However, insurers sometimes make errors in fault determination. A lawyer can help challenge an incorrect fault determination to protect your driving record and insurance rates.

Contact Preszler Injury Lawyers for Help With Unlisted Driver Claims

The confusion surrounding insurance coverage should not prevent you from accessing the compensation you deserve. When an unlisted driver causes a crash, insurance companies will often prioritize their own interests, sometimes at the expense of the injury victim.

Preszler Injury Lawyers can help level the playing field. We understand the nuances of permissive use, vicarious liability, and the interpretation of insurance policies in the province of Ontario.

Our team can investigate the circumstances of the crash, identify all available insurance policies, and advocate for your right to fair compensation.

Contact Preszler Injury Lawyers today for a free consultation, and let us help you navigate the complexities of your claim and work toward securing the financial support you need to recover.

We’re here to help.