You must have a civil liability insurance policy contracted from a private insurer providing minimum coverage of $50,000, except for a tool vehicleA road vehicle, other than a vehicle mounted on a truck chassis, designed to perform a task and having a workstation integrated into the cab. A truck chassis is a frame fitted with the mechanical components found on a vehicle made for the transportation of passengers, freight or equipment.. The minimum is $1 million if you are a carrier and $2 million if you haul hazardous materials.

If you are not insured and you are pulled over by the police or involved in a traffic accident that causes more than $500 in damage to the property of another party:

  • your driver's licence or your right to obtain one could be suspended
  • all of your vehicles may be prohibited from road use
  • you will be assessed a fine that varies depending on the type of vehicle
Useful information

The seller remains the owner and person liable for the vehicle until...

The vehicle is registered in the buyer's name.

This means that should the buyer commit an offence or be involved in an accident with a vehicle that is still registered in the seller's name, it is the seller who would be held responsible.