Car, Truck, Motorcycle, and Other Vehicle Insurance
Automobile insurance is mandatory for all vehicles operated in Ontario. Anyone convicted of driving without auto insurance will face a large fine and excessive penalties on future insurance rates, plus a possible suspension of their Ontario driver’s license.
In Ontario, there are 6 sections to your auto insurance policy, which are as follows:
- Third party Liability – Ontario drivers must carry a minimum limit of $ 200,000 coverage. Due to rising costs of medical, vehicle repairs, and legal fees, it is highly recommended that each vehicle be insured for a minimum of $1,000,000. Higher insurance coverage limits are available for a nominal additional premium.
- Accident Benefits – This mandatory auto insurance coverage provides compensation for medical and rehabilitation expenses, caregiver, death benefits, and income replacement incurred as a result of an automobile accident. Whether you are a driver, passenger, or pedestrian, regardless of how the accident happened or who was at fault, your insurer will provide compensation for your injuries.
If you have a minor injury due to an auto accident, your medical and rehabilitation accident benefits are limited to $3,500 regardless of the coverage level you have selected. There are different levels of insurance coverage for catastrophic injury. Note that Accident Benefits have been adjusted in Ontario, effective June 1, 2016. It is imperative that you review these changes carefully to ensure proper coverage. Optional insurance benefits are available at an additional cost.
- Direct Compensation: This covers damage to your vehicle and loss of use of your vehicle if another person was at fault for the accident. Your insurance claim is filed with your own insurer and has no impact on your future insurance premiums.
- Uninsured Automobile: This auto insurance coverage protects you and your family in the event of an injury or death caused by an uninsured vehicle or unidentified driver (hit-and-run driver).
- Physical Damage: This covers any physical damage to your automobile (4 sections)
- Collision Coverage: Also known as Upset Coverage, this covers damage caused when your vehicle has an impact with another object such as another vehicle, building, guardrail, or roadway, and also includes a rollover of the vehicle.
- Specified Perils Coverage: Also known as fire, theft and comprehensive insurance coverage, this auto insurance covers the insured for any losses caused by any of the following: fire, theft, break-in or vandalism, flying objects, falling objects, falling or forced landing of an aircraft (including parts of an aircraft), and natural disasters like a windstorm, hail, lightning, flooding, or an earthquake. It also covers the insured for human caused disasters such as rioting or civil disturbance, explosions, or the burning, sinking, stranding, derailment, or collision of any type of land or water transport that is carrying an insured vehicle.
- Comprehensive: This automobile insurance coverage reimburses the insured for any loss not covered by collision or upset and includes coverage listed under Specified Perils. Impact with an animal is a covered loss under comprehensive insurance.
- All Perils: This auto insurance coverage not only combines Comprehensive coverage with Collision or Upset coverage, but it also includes compensation for loss or damage caused by any person who is living in your home and happens to steal your vehicle.
- Policy endorsements: These amendments are provided to enhance the auto insurance coverage on your policy. Here are the five most common policy endorsements:
- Loss of Use (OPCF20): This will cover your expenses should you need to rent a vehicle while your automobile is being repaired or replaced, as long as the damage was caused by an insured peril.
- Liability for Damage to Non-Owned Automobile (OPCF 27): This is auto insurance coverage for any physical damage of vehicles you do not own that you may operate, such as a car rental or borrowed vehicle. When renting a vehicle, liability, accident benefits, uninsured automobile, and direct compensation insurance will all be included.
- Removing Depreciation Deduction (OPCF 43): This insurance coverage is included for vehicles that are owned or leased new. Depreciation is not applied in the event of a loss usually from 24 to 48 months, and may vary between Ontario insurance companies.
- Family Protection Coverage (OPCF 44R): This automobile insurance coverage is designed to protect not only you, but also any eligible member of your family. It includes the same coverage limits as your liability insurance coverage should you or a family member become involved in a not-at-fault auto accident with anyone who has no insurance, or carries lower insurance coverage limits, or is an unidentified hit and run driver.
- Accident Protection or Accident Forgiveness (OPCF 39): This auto insurance coverage will protect your preferred rating and driving record in the event of your first at-fault accident. Your car insurance premiums will not be affected by the claim as long as your policy remains with the same Ontario insurance company.
Automobile insurance in Ontario is serious business. It’s up to you to understand your auto insurance policy and select the best coverage to suit your individual needs, and to avoid financial hardship after a claim for an unfortunate accident.
Huronia Insurance Group in Barrie, Ontario, also offers High Risk Driver Insurance.