Ontario and IBC to roll out electronic vehicle insurance verification system

Starting in November 2010, a new electronic verification system developed by the province and the Insurance Bureau of Canada will provide on-the-spot confirmation of valid insurance coverage during the licence plate renewal process.
“The ability to check for insurance in real-time means fewer uninsured vehicles on Ontario’s roads and less risk to other drivers,” Ontario’s Ministry of Transportation announced in a press release.
In Ontario, it is mandatory for all vehicles to have valid insurance coverage. Currently, drivers are required to provide proof of valid insurance when renewing their driver’s licence plates, which can mean simply showing a slip of paper.
Drivers who have insurance or vehicle-information issues in their registration information will be notified in writing approximately 120 days prior to their licence plate expiration date, giving them time to correct or update their information.
Penalties for driving without insurance include a fine of up to $25,000 for a first offence. For the second offence, the fine goes up to $50,000 in addition to the possibility of a driver’s licence suspension for up to one year.