Did you know that by law, in Ontario, if you own a car, you must have auto insurance? Because you have to have it, insurance experts say a little knowledge goes a long way in choosing the best car insurance coverage for you.
“Auto insurance can seem confusing, but it doesn’t have to be,” says Robert Manson, Sr. Vice President of carinsurance.ca. “Understanding the basics of how auto insurance works helps when choosing the right car insurance policy for you. In Ontario, every auto policy comes with certain coverages mandated by law and then there are additional coverage options people can consider purchasing for their added protection and peace of mind.”
There are three important things to know about Ontario car insurance.
1. Standard auto insurance coverage includes:
Third Party Liability– provides coverage for injuries to another person or their property if you are at fault in an accident, up to the limit of your car insurance coverage.
Direct Compensation-Property Damage–covers damage to your own vehicle and/or property within your vehicle caused by a car accident where you are not at fault.
Accident Benefits – provides certain benefits to you or others injured or killed in an automobile accident.
Uninsured Auto Coverage – covers you in the event of an accident with an uninsured driver or unidentified vehicle.
2. For added protection, you can include:
Collision insurance– covers damage to your vehicle in an auto accident.
Comprehensive insurance–protects your car against loss or damage beyond collision.
All Perils or Specified Perils – All Perils covers both Collision and Comprehensive, while Specified Perils only protects against specific risks.
Under new Ontario law, Statutory Accident Benefits – such as medical, rehabilitation and attendant care, death and funeral benefits, dependent care, and income replacement can be enhanced.
3. In all cases, loss or damage coverage is subject to limits, deductibles and exclusions.
As Ontario has no-fault insurance, any claims on your policy are made directly with your insurance company, no matter who is at fault.
No-fault insurance does NOT mean no party is found to be more responsible for an accident. When an accident occurs, the parties’ insurance companies determine what percentage of ‘fault’ each party bears in an accident using fault determination rules set out in the province’s Insurance Act.
Under new law, if you are found to be less than 25% at fault, the accident cannot affect your insurance premium.
This article is for information purposes only. In the event of conflict between this article and your policy, terms of your policy prevail.
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