Shop Insurance Canada Explains Why Cars Driven by Spouse's are Now Uninsured

October 08, 2016 (PRLEAP.COM) Business News
October 8, 2016 - A case held in the Ontario Superior Court of Justice has sent ripples through the auto insurance industry and potentially set an interesting precedent. The ruling says that vehicles taken without consent are classed as "uninsured" even if the owner has insurance. Shop Insurance Canada explains what this could mean for the auto insurance industry.

The decision means you really need to be careful who uses your car. Court records show the case in question was Skunk v Ketash, 2016 ONSC 2019. The court found that uninsured or underinsurance coverage was named to a policyholder's spouse when the vehicles had been used without the owner's consent.

Skunk, the plaintiff in the case, was a passenger in her husband's (the insured) car while he was not present. The vehicle was being operated by Ketash, the defendant. The vehicle was involved in a collision and Skunk was injured. The driver did not have any insurance, but the car was insured by Jevco.

The plaintiff attempted to make a claim through Jevco against the uninsured defendant and for coverage for inadequately insured motorists under OPCF 44R. However, the insurance provider refused the coverage after the investigation. The matter was confused by the fact that Skunk's husband (the insured owner of the vehicle) filed stolen vehicle charges against Ketash, which were upheld.

Jevco insists that a plaintiff cannot make a claim when the vehicle is owned by a spouse. The company cited the auto insurance Act, R.S.O. 1990 c.l.8, which states and uninsured vehicle as "… an automobile with respect to which neither the owner nor driver has applicable and collectable bodily injury liability and property damage liability insurance for its ownership, use or operation, but it does not include an automobile owned by or registered in the name of the insured or his or her spouse."

At the Ontario Superior Court, Justice Newton agreed with Jevco. He continued and said his ruling was designed to prevent claims coming from insured owners after using their spouse's uninsured vehicle.

What Do You Want To Know About Insurance?
Shop Insurance Canada works hard to bring all the latest insurance news to customers. We believe that understanding the industry starts with knowing what is happening day to day. Our customers and readers are hugely important to us, and we want them to get the best deals by being involved in the industry. If you have any interesting insurance topics or stories, let us know and we will be happy to look into it and write it up.

Perhaps you have a funny story about your premium evaluations, or maybe a genuine worry about the state of insurance in Canada. Shop Insurance Canada wants your voice and story to be heard, so get in touch with us via our official contact page.

About Shop Insurance Canada
Shop Insurance Canada is a Toronto based company that specializes in delivering the best auto insurance products to customers around Ontario and Canada. The online insurance quoting tool uses an engine that is easy to use and accurate enough to deliver the best auto insurance quotes from over 25 of Canada's leading providers. Shop Insurance Canada also offers expert advice on the auto insurance industry, as well as guides and news to help customers find the best deal possible.

Shop Insurance Canada
1003-60 Bathrust St.
Toronto, Ontario
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