In Alberta, driving without car insurance is treated as a very serious matter. The provisions of the provincial Highway Traffic Act make it a criminal offense to drive a vehicle that is not insured.
Even a person who has borrowed a vehicle can be charged if it is stopped and the police discover that the owner does not have insurance in place. The borrower should check the vehicle’s glove compartment to make sure that there is a valid insurance slip in it before operating it. The owner can also be charged under the Act for failing to have proper insurance in place while it is being driven.
On conviction, a person driving without insurance is required to pay a fine of $2,500 as well as a victim fine surcharge of $375, which brings the total amount to $2,875. The judge will give the individual a certain time to pay the fine, but if he or she does not do so, the offender will be sentenced to between 45 days and six months in jail.
A second conviction for driving without insurance carries a fine of $5,000-$20,000 and between 60 days and six months behind bars if this amount is not paid as ordered. The offender’s driver’s license may be suspended in addition to any other sentence imposed.
If you decide to cancel your car insurance policy, you need to go about the process in the right way. Simply stopping your payments is not a good strategy, and it can affect your credit as well. Whatever the reason you have decided to stop getting car insurance coverage from a particular company, check the policy language to find out the right way to cancel.
Many insurance policies require the customer to notify the company in writing that they wish to cancel the coverage. If so, be sure to include all the information the insurance company needs in the letter. The policy number should be clearly set out, and it’s a good idea to specify the make and model year of the vehicle as well. Tell the insurance company the date that you wish to have your coverage terminated. Then send the letter by courier or registered mail so that you have proof of delivery.
You shouldn’t assume that your existing car insurance policy expires if you don’t tell the insurer that you wish to renew the coverage. Unless the insurance company receives instructions to the contrary, it will renew the policy and issue a bill for the next payment term. Ignoring the bill and not dealing with canceling the policy yourself means the insurer will cancel it and this information will appear on your credit report.
