Commercial Auto Insurance in Toronto

Who needs a commercial auto insurance policy in Toronto?

If you are a business owner in Toronto and employ a vehicle (or multiple) for commercial or business purposes, it's essential to invest in a commercial auto insurance policy. Without such coverage, you risk potential denial of claims and inadequate protection for your business assets. Commercial auto insurance offers similar benefits to personal insurance, safeguarding drivers, passengers, and vehicles from financial losses in case of incidents.

It’s also important to note that this insurance policy isn’t just used by trucking companies or delivery companies. It’s well-suited for various businesses, like retail stores, warehouses, and even food trucks. Even if your business’s main “drive” isn’t transportation, but your operations rely on your vehicle (not including your commute) then securing a commercial auto policy is critical, as standard car insurance in Toronto won’t protect you from business-related losses. Consulting with your insurance broker about this option will ensure you receive the necessary protection, shielding you and your business from potential financial setbacks arising from accidents or incidents involving your vehicle.

Toronto commercial auto insurance coverage types

What is included in commercial auto insurance policies can vary based on your business's location and specific requirements. Similar to personal car insurance, all commercial auto insurance policies must adhere to provincial laws. Each Canadian province has its own set of regulations for auto insurance, including mandatory coverage types. For instance, in Ontario, where Toronto is the capital city, all commercial auto insurance policies must encompass four essential coverages: third party liability coverage, direct compensation-property damage coverage, accident benefits coverage, and uninsured automobile coverage.

Beyond the compulsory coverage, businesses also have the option to obtain additional protection for their vehicles, such as collision car coverage or comprehensive car coverage . Depending on your needs, considerations may also include coverage for attached equipment, vehicle modifications, and commercial trailer coverage. Commercial auto insurance in Toronto looks very similar to personal auto insurance, except it extends to business activities and can be enhanced to cover a huge fleet of vehicles under one umbrella:

Third-party liability coverage

In Ontario, every commercial auto insurance policy must incorporate a minimum of $200,000 in third party liability car insurance . However, it is strongly advised to carry a minimum of $2,000,000 in third party liability coverage for added protection and peace of mind.

Third party liability coverage shields your business in the event of an employee causing bodily injury or property damage to another person due to a car accident. In such cases, your insurance company will step in on your behalf and reimburse the affected third party for medical expenses related to injuries or repairs to their vehicle, along with any legal or court fees, up to the specified coverage limit.

Direct compensation - property damage

Direct compensation - property damage is in the name: it provides coverage to a not at-fault driver directly from their own insurance company for any damages to a commercial vehicle. It can cover the costs to repair or restore the vehicle, or replace it if the vehicle is written off entirely in the ensuing loss. To qualify for coverage under this section of coverage, the accident must have occurred in Ontario, involved numerous vehicles, and involved at least one vehicle that participates in the ongoing provincial car insurance program.

Accident benefits coverage

Accident benefits coverage is unequivocally one of the most important aspects of mandatory commercial auto insurance coverage in Toronto, as it covers you, passengers, and any pedestrians that require medical attention following an accident. This protection is offered, regardless of who was assigned fault, and it can help to pay for medical expenses, loss of income, and so much more.

Uninsured automobile coverage

Uninsured motorist coverage provides essential protection for you and your passengers when using your business vehicle, particularly in cases where you encounter an at-fault driver who is uninsured or underinsured. This coverage also safeguards company cars in hit-and-run incidents. In such situations, uninsured automobile coverage takes care of medical expenses related to injuries, car repairs for damages incurred, compensation for lost wages, and other relevant expenses.

Optional coverage for commercial auto insurance in Toronto

As you can see from the list above, many types of auto insurance are mandatory in the province of Ontario and, by extension, in Toronto. Some are not, but due to the nature of your business or the usage of your commercial vehicles they can be extremely helpful. Consider incorporating them into your plan for enhanced coverage, or ask a broker about the options below:

Collision car coverage

Collision car coverage, the same as with your personal automobile policy, is optional and also subject to a deductible. It applies when you or your employees get into an accident with another vehicle, an object, a fence, a curb, etc., and the insured vehicle sustains damages. Collision coverage can compensate the business for the repair costs or replacement costs.

Comprehensive car coverage

Same as with collision coverage, comprehensive is optional and subject to a deductible. Comprehensive coverage insures against non-collision damages, so fire damage, vandalism and theft, and so on. It may also cover any fleet vehicles in storage. To protect your commercial vehicle fleet in its entirety, we recommend this coverage for even vehicles that are not currently in-use to protect them from all the risks they may be exposed to while not in motion.

Commercial trailer coverage

Commercial trailer coverage safeguards trailers used for business purposes. This type of coverage includes protection against physical damage to the trailer and liability coverage in case the trailer causes damage or injury to others. Additionally, if you use trailers that you don't own, you can add them to your policy as non-owned trailers to ensure proper liability coverage. Having comprehensive coverage for your trailers is essential in safeguarding your business assets and ensuring you are adequately protected in any unforeseen circumstances involving your trailers.

Accident forgiveness

Accident forgiveness is an insurance add-on that defends your employees or drivers from an increase in your commercial auto insurance premiums after an initial at-fault accident. Should an accident occur, any vehicles insured with accident forgiveness will not experience a penalty or rate hike on their insurance policy. It allows drivers to therefore maintain a “good driver” status, despite the initial slip-up.

Non-owned automobile liability

Non-owned automobile liability is an added insurance option that protects a business if it is held responsible for any incidents that occur while utilizing vehicles that are not owned by the business itself. For example, a vehicle that an employee owns and otherwise uses for personal use but occasionally does deliveries in might be covered by this type of insurance. The employee’s personal auto insurance would not cover any liability arising from the accident if the cause of the incident was found to be due to business use. Non-owned liability fills in this gap, serving as supplemental coverage for non-owned vehicles.

Modifications and attached equipment

Numerous commercial vehicles come with added equipment or modifications, like winches, fuel tanks, or toolboxes. When you make such modifications , it is crucial to ensure that they are properly included in your policy. Failure to disclose these changes to your insurance company may result in not receiving the full value of your vehicle in a claim. In more severe instances, a claim might even be denied due to non-disclosure of significant alterations that affect the vehicle's overall value. Being transparent about any modifications or added equipment will help protect your investment and ensure proper coverage in case of any unfortunate events.

How much does commercial auto insurance in Toronto cost?

The cost of commercial auto insurance can differ based on the insurance provider and the specific coverage options and limits selected. Insurers consider various factors when calculating commercial auto insurance premiums. Knowing the key business and vehicle-related elements that influence the cost can assist Canadian business owners in finding the most suitable coverage. Below are some of the critical factors that insurance companies use to determine the pricing of commercial auto insurance:

• Year, make, model, and value of all business-operated vehicles
• History of insurance claims
• Types and value of goods transported (if applicable)
• Percentage of travel to the U.S.
• Coverage limits, types, and deductibles selected for your policy.
• The sector in which your business operates
• Business procedures and practices
• The location of your business, including specifics about vehicle parking areas
• Driving records and experience level of your employees or drivers
• Age and gender of your business's employees or drivers
• Annual mileage for each business vehicle

Ways to save on commercial auto insurance in Toronto

How to insure business vehicles is often the question when it comes to differentiating between personal and commercial auto insurance. In addition, there comes the question of how to keep costs as low as possible. When running a business, your goal is to keep profits high while also reducing your overall expenses - and that can be difficult to do when you don’t fully understand all the best ways to reduce your insurance costs without sacrificing coverage. Fleet insurance requirements can also make it difficult to reduce coverage while also remaining legally compliant, so what’s there to do? Check out our list of the best ways to save:

Test a driver risk management program

By incorporating driver risk management practices into your business, you can potentially save on commercial auto insurance costs. Establishing a comprehensive risk management program involves various strategies, such as recruiting well-trained and vetted drivers, setting clear policies and procedures, creating preventive maintenance guidelines, and ensuring that all company vehicles comply with motor vehicle regulations. Implementing these measures can demonstrate your commitment to safety and responsible driving practices, leading insurance companies to offer reduced premiums as a reward for proactive risk management.

Invest in winter tires for your commercial fleet

To lower your commercial auto insurance costs, consider equipping your business vehicles with winter tires. In Canada, where winters can be challenging, this proactive step may lead to insurance savings. By installing winter tires , your insurance company may offer you a reduced premium. Winter tires provide improved traction, enhancing road safety and reducing the likelihood of accidents. Taking this precautionary measure shows your commitment to safer driving, and insurers often reward such responsible actions with cost savings on your policy.

Equip business vehicles with safety features

Some commercial vehicles come pre-equipped with safety features, where others may need the addition of separately-installed components, like car alarms and lane assist or even emergency braking. Equipping vehicles with a variety of safety features can save you a significant amount of money. When purchasing newer vehicles for your company, consider those that already have these more modern features installed, as this can reduce the odds of an accident and qualify you for lower premiums.

Bundle multiple insurance policies

Having multiple commercial insurance policies through a single insurer may qualify you for a discount. Moreover, combining multiple auto insurance policies into a single fleet insurance policy can qualify you for a “bulk” discount. The action of combining policies is not only more convenient overall, but it can also save you a significant amount of money.

Seek out the aid of a BrokerLink advisor

Working with an insurance advisor is always the way to go when you want to save money on your commercial auto insurance in Toronto. Whether you’re buying insurance, renewing car insurance , or you’ve just been involved in an accident , a BrokerLink insurance advisor is there to help walk you through your options and break down your insurance plan to ensure everything is exactly how you want it to be. They’ll give you advice, negotiate on your behalf, and give you insights on all the best discounts available.

Consider usage-based insurance programs

Some insurers offer usage-based insurance, which bases premiums on actual driving behaviour. Telematics devices are installed in company vehicles, which are also good for employers to gauge employees’ use of company vehicles. The program will discount the insurance policy based on the driving behaviour, and things such as fast acceleration, hard braking, speeding, etc., will be monitored to assess how “mindful” of a driver the employee is.

Why BrokerLink?

Whether your business has one company car or a dozen, collaborating with an insurance broker brings significant advantages. At BrokerLink, we are well-versed in a wide array of insurance products, and our genuine enthusiasm for the industry ensures we can assist you in finding the perfect coverage for your business assets. As self-proclaimed insurance enthusiasts, we pride ourselves on staying current with the latest trends and knowledge in the field. By partnering with us, you can rest assured that we will provide you with the necessary information and guidance to secure the best coverage tailored to your business.

We're in your community

BrokerLink lives and breathes the Toronto lifestyle, and has worked hard to understand the in-depth needs of the commercial vehicle industry here in the “Queen City.” BrokerLink has over 200+ branches across Canada, and our local presence in the cities that we serve allows us to give an even more personalized service to our customers and help them find the right insurance solutions. We are beyond thrilled to connect you with our new neighbours in Toronto and help you find the coverage that your business needs. Begin the process by reaching out to us over the phone, by email, or visit a branch in-person. We look forward to getting to know you and helping meet your insurance needs in Toronto.

Contact us

When you're prepared to begin, feel free to reach out to BrokerLinkthrough phone, email, or by visiting one of our local branches. We offer these three communication options because we understand that addressing your business insurance needs through the traditional channels may not always be convenient given everyone's busy schedules. We're delighted to connect with you in the manner that suits you best, ensuring that we can offer expert guidance to find the optimal insurance coverage at the most competitive price.

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Toronto commercial auto insurance FAQs

Becoming an expert in insurance isn’t your job. Your job is to deliver high-quality products, services, and to do it with as minimal risk as possible! While you do what you do best, we focus on the insurance. Below, we’ve addressed some popular Q&As to help you make more informed insurance decisions:

What does commercial auto insurance in Toronto cover?

Commercial auto insurance in Toronto provides coverage for vehicles used for business purposes. It includes protection for bodily injury and property damage liability, coverage for your business vehicles in case of accidents or damage, and additional options like uninsured motorist coverage and comprehensive coverage for non-collision incidents. The policy can be tailored to suit your specific business needs and protect your assets in the event of unforeseen incidents.

Is commercial auto insurance mandatory in Toronto?

Yes, commercial auto insurance is mandatory in Toronto and throughout Canada if your business uses vehicles for any business-related activities. It is essential to comply with provincial laws and regulations, which require businesses to carry a minimum amount of liability coverage to protect third parties and property in case of accidents.

What is non-owned trailer coverage in commercial auto insurance?

Non-owned trailer coverage is an important aspect of commercial auto insurance in Toronto. It provides protection for trailers used for business purposes that you do not own. This coverage includes both physical damage coverage for the trailer and liability coverage if the trailer causes damage or injury to others while in use for your business operations.

Can I add attached equipment or modifications to my commercial vehicle on my policy?

Absolutely! It's crucial to ensure any attached equipment or modifications to your commercial vehicle are included in your insurance policy. Disclosing these changes to your insurance company is vital as it ensures you receive the appropriate coverage in case of damages or losses related to the modifications. Failing to disclose these changes might lead to claim denials or insufficient compensation.

If you have any questions, contact one of our local branches.