Car Insurance in Ontario: What Every Driver Needs to Know

Car Insurance in Ontario

Driving a car is a universal necessity for many Canadians. But once you get behind the wheel, mishaps are more likely than not to occur. Whether you’re just starting, commuting every workday, or taking Sunday drives in your collectible car, the importance of car insurance cannot be underlined.

Since car insurance is mandatory in Canada, it’s crucial that you find a fitting provider than just settle for the first one that you see. You can do this in a simple way, for example, if you live in the town of Milton and its surrounding area, you should search locally. With a simple Google search, you can find the best car insurance Milton has to offer. 

But before you make your decision on a provider, it’s crucial to feel confident that you have enough coverage in case of an accident or injury and a thorough understanding of your vehicle insurance policy. So, let’s get started.

Third-Party Liability Coverage

Third-Party Liability (or TPL) auto insurance protects you financially if someone sues you for an accident in which they suffered from a bodily injury or property damage.

It’s required by law because car accidents often create damage that goes well beyond the means of the average person to repair.

Statutory Accident Benefits Coverage

No matter who was at fault, if you sustain injuries in a car crash, you will be covered by accident compensation. You could also choose to raise your insurance limits, but that’s on you.

The accident benefits provided by your insurance are extensive and include many different parts, such as:

  • Assistance with medical expenses and rehabilitation;
  • Benefits to replace lost earnings;
  • Obituary costs and death benefits for the members of your immediate family.

Direct Compensation-Property Damage Coverage (DC-PD)

DC-PD insurance pays for repairs to your car if the other driver is at fault in an accident. In most cases, you won’t have to pay a deductible when making a DC-PD claim.

To qualify for DC-PD, the following requirements must be met:

  • The accident occurred in Ontario;
  • The crash included at least one additional car;
  • Besides your car, at least one of the others is insured by a company based in Ontario.

If one of these is not the case, then you will need to use your collision coverage to cover the costs of the necessary repairs. 

Uninsured Automobile Coverage

Protect yourself from drivers without insurance by purchasing an uninsured motorist policy. This protection will pay for medical bills, funeral costs, and repairs to your car if an uninsured motorist is responsible for such losses. If you are injured or killed in a hit-and-run accident, this policy will pay for your medical expenses.

Optional Complimentary Coverage

Standard vehicle insurance in Ontario covers you in the event of an accident with an uninsured driver as well as for property damage and bodily injury. On the other hand, your insurance may be reinforced with optional coverages.

  1. Collision coverage: Pays for damages to your car following an accident.
  2. Comprehensive coverage: Covers the loss or repair of your car for causes other than an accident. Such as theft, vandalism, or damage caused by a falling tree limb during a storm.
  3. Specified risks coverage: Covers just the damages stated in the guidelines. This often covers losses due to fire, theft, and certain forms of weather damage.
  4. All-risk insurance: Combines collision and comprehensive insurance into a single policy. It includes everything these two do as well as a few more (like someone stealing your vehicle from your household). 

your vehicle from your household

Optional Policy Endorsements

When purchasing car insurance in Ontario, there are some aspects of the coverage that are fixed. However, modifications might be made to suit your requirements better. Two of the most often cited recommendations are:

• Liability for Damage to Non-owned Automobiles (OPCF 27)

For borrowed or rented cars, this will allow your auto insurance policy to apply to the vehicle you are currently using. The rental must be located in either Canada or the United States for this coverage to apply.

• Waiver of Depreciation (OPCF 43)

If the resale value of your brand-new vehicle is ever in doubt, you can rest easy knowing that depreciation is covered. If your automobile is totaled in an accident or stolen and never found, its worth will likely be a factor in your claim.

its worth will likely be a factor in your claim

Final Words

Hopefully, this article has given you a better understanding of your auto insurance coverage in Ontario. If you’re still unsure about anything, contact your auto insurance provider. It’s also never a bad idea to ask for advice from others who have had similar experiences. Read feedback left by clients who have used the services in question.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.