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An insurance liability card, also known as a “pink slip” in Canada, functions as proof of third party liability coverage. A third party liability insurance policy provides coverage if you get involved in an at-fault accident, making you legally liable.
It can financially cover the cost to another person from bodily injury, death or a person’s vehicle or property damage. Visit Surex to explore various liability coverage policies and learn more about the perks of having a motor vehicle liability insurance card.
Motor vehicle liability insurance card Ontario — what is it and why is it important?
In Canada, driving with proof of insurance is necessary, whether paper or electronic. We all know having auto insurance is legally mandatory in Canada. However, many of us forget to carry proof of insurance while driving.
Failure to present a vehicle liability insurance card, commonly known as a pink slip, isn’t just inconvenient but can land you a hefty fine.
How to obtain a motor vehicle liability insurance card?
Whether you are getting auto insurance for the very first time or renewing your existing insurance policy, you’ll receive a motor vehicle liability insurance card (pink slip) along with your documents.
The pink slip entails the following information:
- Registered vehicle owner’s name and address.
- Year, make and model of your vehicle.
- Effective policy date.
- Insurance agency name
- Policy number
If you are a USA resident travelling to Canada, you must get the Canada non-resident inter-province motor vehicle liability insurance card. This proves that your USA auto policies provide the minimum insurance coverage as required in Canada and also extend to Canadian provinces.
Facts about motor vehicle liability insurance card
- Your insurance agency provides the physical paper version of the pink slip.
- You can generate digital versions of the pink slips. Digital versions retain the same value as physical ones.
- Digital versions offer enhanced security by blocking features to edit or alter the information. This added security feature offers fraud protection.
- It is entirely the driver’s responsibility to ensure that their phone is compatible for adequately displaying the digital pink slip. Drained battery, damaged phone screen or poor signal can’t be considered an excuse.
Benefits of electronic motor vehicle liability insurance
- It eliminates the requirement for carrying a paper slip prone to damage and loss.
- Insurance agencies and brokers can share it directly with the consumers through several digital methods.
- Going digital solves the problem of forgetting the pink slip at home and being unable to produce the card when required. Consequently, you save yourself from unnecessary tickets.
The debate on digital motor vehicle liability insurance card
Many experts suggest that digital insurance cards can lead to an increased risk of fraud. However, the chances of copying, duplicating and manipulating pink paper slips are equally high.
Secured technology solutions such as encrypted electronic proof and safe delivery through efficient tracking and reputed logistic partners can help minimize fraudulent use.
With a physical pink slip, a common fraudulent situation arises where the high-risk category driver cancels their insurance after receiving an insurance card. Thus, they can produce proof of insurance without having any.
The police have no concrete approach to verifying unless they directly call the insurance agency. An electronically generated pink slip will help prevent this type of fraud.
When do you need to produce a motor vehicle liability insurance card
You’ll need to show proof of insurance under the following circumstances,
- When pulled over by police or traffic guards at traffic signals.
- When renting a car from a rental agency.
- When purchasing a new or used car.
- When filing for vehicle registration.
- When renewing your license plate.
What happens when you fail to surrender your liability insurance card
Even with valid car insurance, you can attract a fine if you fail to produce your insurance card when prompted by police or any other relevant regulatory authority.
When you’re pulled over at a traffic signal by police, it is mandatory to have a driving license, vehicle registration and insurance proof.
In the event of not producing proof, you can incur the following charges:
- Operating a vehicle without insurance implies when you drive without insurance.
- Failure to surrender proof implies when you’re unable to provide proof of insurance proof to the police.
In case you have insurance but get a ticket for failure to produce proof, you need to attend court to present a valid pink slip to the insurance card and get the charge dropped.
However, when you choose to make payment of the ticket for failure to surrender insurance proof, it will be reflected in your driving record. Such records can stay in your history for upto three years and lead to an increase in premium rates during the next renewal.
Frequently Asked Question
Is it mandatory to have a printed version of a Motor Vehicle Liability insurance card?
No. It is not mandatory to have a printed version of the insurance card. A digital copy is equally valid as proof of insurance. However, you’ll need to have either of them while driving.
Do I need Insurance proof to purchase a car?
Yes. You’ll need proof of insurance during the vehicle purchase process, especially before driving the car from the store to the road.
Is liability insurance enough to get theft protection?
Liability insurance is generally related to accidents and doesn’t cover threats or vandalism. You can get comprehensive insurance, app perils or specific perils to get coverage against theft and vandalism.
Will I receive a new insurance card every time I renew my insurance?
You’ll receive an updated motor vehicle liability insurance card every time you renew your liability policy. The new card will reflect the updated details about your coverage.
After receiving a new insurance card, it is recommended that you destroy and throw away the old insurance proof to avoid complications or confusion. Keep the new insurance proof in your car. Also, keep an additional copy or printed version of the digital insurance card in your home for emergencies such as theft or loss.
Conclusion
Carrying proof of insurance is as vital as getting auto insurance. Connect with a professional expert to get appropriate liability coverage today.
If you lose or misplace your insurance card, immediately contact your insurance provider. It is recommended that you maintain a digital version/record of insurance documents to avoid complications.
Depending on the insurance agency, you may be eligible to secure a temporary card and other relevant documents online.
