ATVs, Automobiles, And Jurisdictions (Oh My!)

Does an ATV become an "automobile" under Ontario insurance law if it is involved in an accident outside Ontario?

In Benson v. Belair, an Ontario resident fell off the back of an All-Terrain Vehicle (ATV) in Fort Nelson, British Columbia. He sustained a severe traumatic brain injury. The ATV, owned and operated by a BC resident, was not required to be insured under an automobile policy in BC and it was not insured.

Because of the incident, the claimant applied to his automobile insurer for Ontario accident benefits, claiming recourse against his personal policy. The insurer denied the claim on the basis that the ATV was not an "automobile" and, accordingly, there was no coverage under the policy.

What is an Automobile?

Section 224(1) of Ontario's Insurance Act defines automobile:

"automobile" includes,

(a) a motor vehicle required under any Act to be insured under a motor vehicle liability policy, and [emphasis added]

(b) a vehicle prescribed by regulation to be an automobile; ("automobile")

In Adams v. Pineland Amusements Ltd. 2007 ONCA 844 (CanLII), the Court of Appeal set out a three-part test for determining whether a vehicle is an "automobile". The first question is whether the vehicle is an "automobile" in ordinary parlance.

If it is, it is an automobile.

If it isn't, the second question is whether the vehicle is defined as an automobile in the wording of the insurance policy.

If it is, it is an automobile.

If it isn't, the third question is whether the vehicle falls within any enlarged definition of "automobile" in any relevant statute?

ATVs inside Ontario

Section 15 of the Off-Road Vehicles Act requires all "off-road vehicles", such as an all-terrain vehicle, dune buggy, or dirt bike, to be insured under an automobile policy when they are being operated on land that is not occupied by the owner of the vehicle. Accordingly, whether a particular off-road vehicle needs to be insured under an auto policy almost always depends on where the vehicle is operated at the time of an incident.

In other words, an off-road vehicle operated in Ontario is always required to be insured under a motor vehicle liability policy unless it is being driven on land that is occupied by the owner of the vehicle. This means that a land occupier can use her off-road vehicle without insurance as much as she wants on her own land. But once she decides to ride the vehicle on someone else's land (public or private land), it must be insured under an auto policy. And...