Automobile insurance in Ontario is required by law. You must not drive without it.
To drive on public roads in Ontario, you must have Third-Party Liability, Statutory Accident Benefits, Direct Compensation – Property Damage and Uninsured Automobile coverage.
Third Party Liability
Third Party Liability protects you is someone is killed or injured or their property is damaged because of your negligence. It will pay for legitimate claims against you up to the limit of your coverage, and will pay for costs of settling the claims, including defense costs. The minimum liability limit required in Ontario is $200,000. We recommend that you carry a limit of at least $1,000,000 to ensure that you have adequate protection.
Statutory Accident Benefits
Accident benefits provides benefits if you are injured or killed in an automobile accident anywhere in Canada and the United States regardless of who caused the accident.
Direct Compensation – Property Damage
Direct Compensation – Property damage allows you to claim from your insurance company for damage to your vehicle and its contents cause by someone else. This means that, to the extent that you are not at fault in an accident with another vehicle, you insurer will pay for damage to your vehicle and its contents. There is generally no deductible applied to this coverage. This coverage only applies if the accident occurs in Ontario and if all parties involved have valid insurance coverage at the time of the accident.
Uninsured Automobile coverage
Uninsured automobile coverage protects you if you are injured or killed by an uninsured motorist or a hit-and-run driver to the extent you were not at fault. The policy provides for up to $200,000 of coverage.
This coverage also covers damage to your automobile caused by an indentified but uninsured motorist. The policy provides for up to $25,000 of coverage and is subject to a deductible of $300.
This coverage pays for damage to your vehicle to the extent that you are at-fault or for damage caused by an unidentified vehicle or object. This coverage is subject to a deductible. The standard Collision deductible is $500, however you may choose a higher deductible in order to decrease your rates.
This coverage pays for all insured damage to your vehicle except for collision damage (e.g. fire, theft, vandalism). This coverage is subject to a deductible. The standard Comprehensive deductible is $300, however you may choose a higher deductible in order to decrease your rates.
This coverage combines collision and comprehensive coverages. It is the broadest
coverage available as it includes all types of coverage unless specifically excluded.
This coverage is subject to a deductible. The standard All Perils deductible is $500, however you many choose a higher deductible in order to decrease your rates.
Family Protection (OPCF 44)
Loss of Use (OPCF 20)
This coverage pays for a rental vehicle if your vehicle requires repairs after an at-fault accident. Generally, there will be a $1,000 limit to this coverage; however this amount varies from company to company.
Waiver of Depreciation (OPCF 43R)
This endorsement is available to those who purchase a new vehicle and is available for a period of not more than two (2) years. It will compensate you for insured losses as if the car were brand new.
Excluded Driver Endorsement (OPCF 28A)
This endorsement does not provide you with any coverage, in fact it removes coverage if the excluded driver listed on the form drives your vehicle. It is commonly used to remove coverage for a driver with a poor driving record or claims frequency. It is useful for avoiding an additional premium such drivers would normally be charged for having access to your vehicle. Please ask your broker if this would be beneficial to your particular situation.
How do claims affect my premium?
Answer: If you are at fault or partially at fault in a collision, your renewal premium may be affected. If you lend your car to others and they cause an accident, your premium may be affected. A lot of “at-fault” claims and/or driving convictions could result in your being transferred to the high-premium Facility Association at renewal time.
Some types of claims do not affect you premium. For example, many companies allow one”at-fault” claim for clients believed to be good drivers and make little or no adjustment inrating or premium at renewal. Claims for theft, vandalism, fire, broken glass and for collision when you are not at fault do not affect your renewal premium.
How do convictions affect my premium?
Answer: Driving convictions, including seatbelt infractions, may affect your rating in several ways depending on the number and type. Premium calculations vary by company. Contact your broker if you’re concerned about how a conviction will affect your renewal premium.
To be eligible for preferred rating plans, such as “six star,” you must have a clear record or no more than one or two minor driving convictions (requirements vary by insurance company).Additional convictions usually result in the loss of your preferred status and discounted premiums. So, in addition to the fine you pay, your insurance costs can go up.
Insurance companies may also levy a premium surcharge if you have several minor driving offences or one of the more serious offences under the Criminal Code of Canada or the Highway Traffic Act.