Discounts
Auto Insurance Discounts are available from all Ontario auto insurance companies, although they vary by company. The following is a brief list of some of the commonly used discounts that may be available on your Ontario auto insurance policy.
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Home & Auto Discount
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Loyalty Discount
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Retiree Discount
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Mature Driver Discount
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Graduated Licence Discount
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Telematics Discount
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Winter Tire Discount
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Hybrid Discount
Auto Insurance 101
Auto Insurance is insurance you purchase to protect yourself and others from the financial risks associated with driving and owning a vehicle. Auto insurance coverage protects you financially in case of physical damage, bodily injury, property damage, and liability that may arise from accidents or traffic collisions. In Ontario, minimum amounts of coverage are recommended for each sub-type. For example, liability of $1,000,000 is often the minimum amount of coverage required by an insurer.
Whether you are driving a smart car weaving through the streets of downtown Toronto, or cruising on the Trans-Canada Highway in North Bay in your 4X4, by law in Canada you are required to carry Auto Insurance.
Below are the basic auto insurance coverage required and available to you as driver on Ontario roads.
Auto Insurance
Auto insurance is mandatory for all motorists in the province of Ontario.
In Ontario, the Insurance Act determines the standard coverage that consumers must purchase.
As a result of the most current reforms, some of the features under the Standard Auto Insurance Policy have changed.
As of June 1, 2016, any new or renewing auto policies will have more options to purchase a level of coverage that suits your needs.
If you own a vehicle in Ontario, you are required to purchase the following minimum automobile insurance coverage:
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Third-Party Liability
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Statutory Accident Benefits
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Direct Compensation – Property Damage
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Uninsured Automobile
Additional coverage such as collision and comprehensive remain the same.
Liability (Bodily Injury)
This coverage protects your legal liability if someone else is killed or injured or their property is damaged and you are found legally responsible for this action. This coverage will pay for legitimate claims brought against you. It will also pay for legal claims against you up to the limit of your coverage and will also pay for the additional costs of settling the claims. As an example, these additional costs may include lawyer’s fees.
In Ontario, you are required by law to carry a minimum liability limit of $200,000 on your auto policy. However, this is far from adequate if you should ever be unfortunate enough to have a large or catastrophic accident and we recommend a minimum of at least $1,000.000.
Most insurance companies will offer standard liability limits of either $1,000,000 or $2,000,000. As the Canadian legal environment changes we recommend carrying higher limits for all drivers. Additional liability coverage often comes at a small cost and should be considered as an option with your broker.
Accident Benefits
This is a mandatory coverage. It covers the costs of injuries or if you killed in an automobile accident anywhere in Canada and the United States regardless of who caused the collision.
Some of these benefits include:
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Income replacement
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Payments to eligible non-earners who suffer a complete inability to carry on a normal life
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Medical, rehabilitation, and attendant care expenses
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Funeral expenses
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Payments to survivors of a person who is killed
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Care expenses to those who cannot continue as a primary caregiver to a member of their household
You have many options to buy additional coverage beyond the minimum required by law. For more information regarding tailoring the right Accident Benefits coverage for your policy please consult with your broker at My Insurance Broker in addition to viewing further information on the Insurance Bureau of Canada’s website (www.IBC.ca).
Uninsured Automobile
This coverage protects you if you are injured or killed by an uninsured motorist or a hit-and-run driver to the extent that you were not at fault. This covers damage to your automobile caused by an identified uninsured motorist.
Direct Compensation Property Damage (DPCD)
An important part of the Ontario auto insurance policy, this coverage allows for you to claim for damage to your vehicle caused by someone else. This coverage will provide to the extent that you are not-at-fault in a collision with another vehicle, your own insurer will pay for damage to your vehicle.
Some brokers may refer to this as your ‘no-fault’ insurance, as it allows for two insured parties, both insured in Ontario, to collect directly from their insurer. The can expedite the claims adjusting and settlement processes, as you deal directly with your insurer. The most common deductible for this coverage is $0.
Collision or Upset
This important coverage pays for damage to your vehicle. You are covered in cases where you are at fault or damage has been caused by an unidentified vehicle or object. The deductibles for collision may range, some standard deductibles are often $500 or $1,000.
Many lienholders and lessors will consider this coverage mandatory. Specifically, if they have an insurable interest in the vehicle (i.e. you are still making payments on the vehicle then coverage is mandatory).
This coverage is often removed from older vehicles that have lost their resale value. Discuss with your broker to determine when you should consider removing this coverage.
Comprehensive
This coverage pays for all insured damage to your vehicle except for collision damage (i.e. these types of claims may include fire, theft, windshield, and vandalism).
All Perils
This coverage is a combination of both the collision and comprehensive coverage. The main difference with this coverage, vs. just collision and comprehensive, is that it insures your vehicle against loss or damages if it were to be stolen. Specifically, if it is stolen by someone within your household or by someone you have hired to drive, service or repair your vehicle, steals it. Ex. If you were to take your car to a garage to get it repaired and an employee who is involved with the repairs to the vehicle steals it, you would be covered under this coverage.
It is the broadest coverage available for physical damage and it includes all types of coverage unless specifically excluded. By combining this coverage together you are also combining all types of these claims under one deductible.
Specified Perils
This coverage pays only for losses caused by perils specifically listed in the policy (primarily fire and theft).