When Coverage Is Denied

To ensure your all perils coverage is valid, you must follow the conditions of your policy.

Under the Graduated Driver Licensing (GDL) Program, you need to be especially cautious lending your vehicle to any new driver. Anyone in the GDL Program who breaks the rules of the program is not authorized by law to drive.

Your Autopac won’t cover you if you lend your vehicle to any driver who isn’t authorized by law to drive.

To find out more about the rules for drivers in the GDL Program, please refer to the Graduated Driver Licensing--Your Guide brochure.

Your all perils coverage may be refused if the damage or loss occurred when:

  • someone was driving without being qualified and authorized by law to drive (for example, an unlicensed driver)
  • someone was driving the vehicle with a suspended driver’s licence or couldn’t drive because of a court order
  • someone under 16 was driving the vehicle without holding a valid learner’s permit or wasn’t following its rules
  • the driver was under the influence of intoxicants and therefore couldn’t keep proper control of the vehicle
  • the driver was convicted of impaired driving or having a blood alcohol level equal to or over .08 at the time of the accident or of refusing to take a breathalyzer test
  • the vehicle was being used for an illegal trade or to transport items against the law (for example, the vehicle was being used to smuggle cigarettes or to carry explosives without proper identification and safety precautions)
  • the vehicle was in a speed test or motor race
  • an unregistered trailer was attached to the vehicle when the law requires the trailer to be registered
  • the accident occurred when fleeing from the police
  • the vehicle was being used for something prohibited by The Highway Traffic Act, The Drivers and Vehicles Act, or a vehicle-for-hire bylaw of a municipality
  • the vehicle is being used differently than declared on the application for insurance (for example, when you’ve said the vehicle is only being used for pleasure driving when most of the time it’s being used for your business)
  • the person claiming doesn't identify who was driving the vehicle at the time of the loss or damage

Sometimes the vehicle’s owner and driver aren’t the same. In that case, the owner may be entitled to all-perils coverage if he or she didn’t knowingly allow the vehicle to be driven by the person described in all the bullet points above, except the last one.