On Thin Ice - with Your Auto Coverage, Too?
Venturing out on the frozen lakes is a tradition for many in Northern Ontario. They drive their vehicles onto frozen bodies of water to ice-fish or even just to park, due to blocked roads.
Whatever the reason, one must be reminded that every winter/spring, some cars and trucks sink beneath the icy waters. Who pays for the damages (or even the entire loss of the vehicle)? Don’t assume your car insurance will cover in this instance. And, you may expect that you’re covered for damages you cause other properties - but will that be the case with the lake you’ve contaminated with leaking gasoline, oils and other toxic automotive fluids?
Whether or not you are covered for that mess will depend on the terms of your insurance policy. Some possible scenarios are:
- You may need to purchase a special rider on your auto policy
Why a pollution clause? Because of all the gasoline, oil and other toxic, corrosive fluids that seep from your vehicle into the water when you break through the ice, thus damaging the natural environment. As one Canadian insurance blog writes, “Pollution exclusion clauses once applied mainly to damages from pollution in the industrial setting, but are now often included in residential policies... to make sure that a polluter actually pays for pollution [he] causes... insurance companies should not have to pay for breaches of environmental laws by their clients under general insurance policies.”
Even if you are one of the lucky ones and there is no pollution exclusion clause on your auto policy and your insurance covers that ice-fishing truck mishap, there are other costs you could face:
- Possible fine issued by the municipality, province or conservation authority for pollutants in the water (Environmental law is evolving at a rapid pace; your insurance broker can provide up-to-date information)
- Cost of getting your vehicle pulled out of the water - not inconsequential given the kind of equipment required so the tow truck doesn’t submerge, too
Your local insurance broker will know the specifics of your particular auto coverage, and more than likely has dealt with this driving-on-ice scenario before (especially in the more northern parts of the province). He/she will have the information you need to make a wise choice about whether to risk driving on ice next winter.
Have you ever driven a vehicle onto an ice-covered lake? Would you do it again? Leave your comments here.