Question about Minimum Automotive Insurance in Canada

[Staff Sergeant]

OK, so I have been riding the bus lately to get places with a friend (I go cross town every day), and I was contemplating going in with him on a junker car with minimum insurance just to last us the year before we move to an apartment closer to our daily destinations.

I asked my parent about automotive insurance, but they weren't very explicit in their answers (they are currently paying my insurance as a casual/whatever driver on their car), and my friend's understanding of insurance makes insurance seem frivolous to me, so I'm skeptical of him.

He seems to think that if a car is insured, anyone can legally drive it, but not be financially covered by the insurance company (his parent's cars have insurance, and he drives them occasionally as well as his dad's motorcycle, but there is no seperate policy focusing on him, and he thinks he is legally in the clear). This makes no sense to me, because then what does insurance even do? If he gets in an accident, he is screwed as is whoever he owes the money for repairs to, because insurance will not pay for it, and is that not the reason insurance exists?

I'd be really grateful if any of you even read this long-ass post, let alone give me a knowledgable answer. Google and wikipedia have failed me, and this is my last ditch before setting up a meeting with a broker and asking him directly what I need to make a junk car street legal.

In case you are wondering, the plan is to get the junker put on my parent's insurance policy (for WAY cheaper than if I made my own) and just pay them whatever it costs per month, but I need to know if I would be covered by that.

[greywind]

All of the insurance policies I've had in Canada included incidental drivers. Which means if you loan your car to a family member or friend and they get into an accident, they are covered by your insurance policy. But this covers occasional driving only. If you're talking about this being your primary vehicle and your parents not driving the car at all, then they are committing a form of fraud by saying you're just an occasional driver when they take out the policy.

The cheapest form of car insurance is liability only, and even those rates can be pretty high for a new driver. But it's really your only option until you've got a few years under your belt as the primary insured.

[Staff Sergeant]

But this covers occasional driving only. If you're talking about this being your primary vehicle and your parents not driving the car at all, then they are committing a form of fraud by saying you're just an occasional driver when they take out the policy.

This is exactly my concern. If you are correct then he is not driving illegally per-se, but his parent's are committing fraud (probably unknowingly) for his benefit. I'll have a talk with him about it, but I have a suspicion he knows it is fraud and just doesn't care. This is also the reason I can't go and talk to a broker and be like, "Hurr, I can has fraud charge nao?"

Times like this I'm glad only Tom knows my real name and hopefully will not reveal it.