How Does Car Insurance Cover Hit-and-Run Accidents?
Being involved in a hit-and-run accident is frustrating and stressful. Whether you find your parked car damaged with no note left behind or another vehicle hits you and speeds away, it can leave you wondering: Who is responsible for paying for the damage? Will my car insurance cover this?
Fortunately, car insurance in Canada does offer protection in hit-and-run accidents, but the level of coverage depends on your province and your policy.
Let’s take a look at how car insurance in Canada treats hit-and-run accidents:
What is a hit-and-run accident?
A hit-and-run happens when a driver causes damage to another vehicle, person, or property and leaves the scene without providing their information or offering assistance. This includes:
- Another driver hitting your parked car and leaving without a note.
- A vehicle crashing into you while driving and speeding away.
- A driver hitting your fence, garage, or other property and leaving without taking responsibility.
In Canada, hit-and-run accidents are illegal and failing to remain at the scene of an accident can lead to criminal charges under the Criminal Code of Canada. However, many hit-and-run drivers are never identified, leaving victims uncertain about how to recover damages.
Does car insurance cover hit-and-run accidents?
Yes, but the type of insurance that covers a hit-and-run in Canada depends on the province you live in and your policy coverage. Since the at-fault driver is unknown, you’ll need to rely on your own insurance for compensation.
Here’s how different types of Canadian car insurance apply to a hit-and-run accident:
Collision coverage (recommended for hit-and-runs)
If you have collision coverage, your insurance will help pay for repairs to your vehicle after a hit-and-run accident, even if the at-fault driver is unknown. You will have to pay your deductible before the insurance covers the rest.
Example: If your deductible is $500 and repairs cost $3,000, your insurer will pay $2,500, and you’ll be responsible for the $500 deductible.
Collision coverage is optional in Canada, meaning you must have chosen it when purchasing your policy. If you only have basic mandatory insurance, hit-and-run damages may not be covered.
Uninsured automobile coverage (mandatory in most provinces)
In most provinces, uninsured automobile coverage is included in your mandatory auto insurance policy. It helps pay for injuries or death caused by uninsured or unidentified drivers, including hit-and-run accidents.
Important: This coverage applies only to injuries or fatalities, not vehicle repairs. If you’re hurt in a hit-and-run, your uninsured automobile coverage will help with medical expenses, rehabilitation, and potential compensation for lost wages.
Comprehensive coverage (does not cover hit-and-runs)
Some drivers mistakenly believe that comprehensive coverage will pay for hit-and-run damages, but this is not true. Comprehensive insurance covers non-collision events, such as:
- Theft
- Vandalism
- Fire
- Natural disasters (hail, floods, etc.)
For hit-and-run vehicle damage, you need collision coverage.
Direct Compensation – Property Damage (DCPD) (Available in some provinces)
If you live in a province with Direct Compensation – Property Damage (DCPD), your own insurance pays for vehicle damages in a collision when another driver is at fault. However, DCPD does not apply if the at-fault driver cannot be identified, meaning it typically won’t cover a hit-and-run.
DCPD is in place in:
- Quebec
- New Brunswick
- Nova Scotia
- Prince Edward Island
DCPC is optional in Ontario. If you’re in Alberta, British Columbia, Saskatchewan, or Manitoba, your insurance system operates differently, and you may have no-fault benefits to help with some costs.
Steps to take after a hit-and-run accident
If your vehicle is involved in a hit-and-run, taking the right steps can increase your chances of recovering costs through insurance.
Stay at the scene and check for damage
If your car was hit while parked, check for dents, scratches, or broken parts. If the hit happened while you were driving, pull over when it’s safe to do so and assess the damage.
Look for witnesses and gather evidence
Try to find witnesses who saw the accident. Ask if they saw:
- The make, model, and colour of the vehicle
- Any part of the license plate
- Which direction the driver fled
Use your phone to take clear photos of:
- The damage to your vehicle
- The accident scene (skid marks, debris, location)
- Any nearby security cameras that may have recorded the incident
Call the police and file a report
In Canada, it is mandatory to report a hit-and-run to the police if the damage exceeds $2,000 (this amount varies by province). Even if the damage is minor, filing a police report helps with your insurance claim.
Important: Some insurers require a police report before they process a hit-and-run claim.
Contact your insurance provider
Call your insurer as soon as possible to report the hit-and-run. They will ask for:
- The police report number
- Photos and evidence of the damage
- Any witness statements
If you have collision coverage, your insurance will pay for repairs after you pay the deductible.
Check for security footage
If your car was hit in a parking lot or near businesses, ask if they have security cameras that captured the accident. Sometimes, police can use this footage to identify the driver.
How to protect yourself financially from hit-and-runs accidents
While you can’t prevent other drivers from fleeing after an accident, you can protect yourself financially by taking the following steps:
Add collision coverage to your car insurance policy
If you don’t have collision coverage, you will be fully responsible for repair costs in a hit-and-run. Adding this coverage ensures your car is protected.
Consider dash cam installation
A dash cam can record accidents in real-time and may capture the license plate of a hit-and-run driver, making it easier for police to track them down.
Park in well-lit areas
If possible, park in high-traffic, well-lit areas or near security cameras to reduce the risk of hit-and-run damage.
Report suspicious behaviour
If you witness a hit-and-run, try to note the vehicle’s license plate number and report it to police.
Final thoughts
A hit-and-run accident can leave you feeling helpless, but having the right insurance coverage in Canada can protect you from unexpected costs. Collision coverage is the best way to ensure your vehicle repairs are covered, while uninsured automobile coverage can help if you’re injured.
Ask a Western Financial Group car insurance expert about car insurance and the coverage you need to protect yourself on the road.
