OIP News - The Uninsured Vehicle Project - What you need to know
As you know, auto insurance is mandatory in all parts of Canada. In Ontario, a new initiative – the Uninsured Vehicle Project – was recently launched to help reduce the overall number of uninsured vehicles.
The Uninsured Vehicle Project, a joint program between the Ontario Government’s Ministry of Transportation (MTO) and the insurance industry, offers an electronic means of determining if a vehicle is insured. The objective is to reduce fraud, improve road safety, and contribute to fair insurance rates, ultimately by ensuring that all vehicles have proper insurance.
The project links the Vehicle Identification Number (VIN) in an insurance database maintained by the Insurance Bureau of Canada (IBC). The first phase of this project rolls out this fall, and when vehicle owners renew their license plates, the MTO will automatically check the VIN in the online database to determine if the vehicle is covered.
How might this affect you?
Errors occur. It is possible that your insurance may not show properly in the online database. If an issue arises, the MTO will send you a notice 120 days in advance of your license plate renewal, and you are urged to contact your broker right away. Brokers and insurance companies are well aware of potential issues, and are ready to efficiently and swiftly rectify VIN errors.
Future of the Uninsured Vehicle Project
In the coming years, this project will eventually involve the police, who will have the ability to access the online database to search whether a vehicle is insured.
Auto insurance is not only a legal requirement, but an absolute necessity. These measures have been put in place to protect all drivers, as the safety of everyone is of paramount importance.
Source: The Insurance Bureau of Canada (www.ibc.ca)
Want to Know More?
Call us toll free 1.888.681.2862, or via email at ovma@csib.org. The OIP is administered by Cornerstone Insurance Brokers, Ltd.