Car Insurance in Oakville

While auto insurance is required in Oakville, Ontario, some people opt to drive without it - illegally. Now, imagine getting into a collision with a driver who is either uninsured or underinsured. Who's responsible for damages when their coverage can't afford to cover these costs?

Uninsured or unidentified automobile coverage protects Ontario drivers if they are involved in an accident with another driver who is deemed at fault and is uninsured or underinsured, ensuring compensation is provided. It also kicks in if the other driver decides to flee the scene of the accident before (hit-and-run).

Accidents can happen at any time. If you're found to be at fault, you could be held legally liable in court. For example, if you rear-end someone and they suffer damage to their vehicle, whiplash, and other injuries, they could sue you for damages.

Third-party liability coverage will kick in to help pay for the other driver's damages and injuries. Your liability insurance also covers any legal fees that you could incur as a direct result of an at-fault accident. The minimum coverage requirement for this auto insurance policy is $200,000. However, most Oakville drivers tend to opt for limits up to $1 or $2 million for additional protection.

As of January 1, 2024, direct compensation - property damage is no longer mandatory. Direct compensation kicks in when you or your car is damaged in a car accident and you are deemed not at fault, allowing you to deal with your own insurance company during the claims process, rather than the other driver's.

Collision coverage is a popular type of optional coverage. It provides compensation for damages if your vehicle collides with another driver, a stationary object, or if your car rolls over. While this coverage is optional, you may be required to carry it if your vehicle is leased or financed.

Vehicle thefts in Ontario increased by 561% between 2018 and 2023, while insurance claims increased from $56 million to nearly $371 million. In other words, you could be at risk of having your vehicle stolen when you least expect it.

This is where comprehensive insurance comes into play. Comprehensive car coverage is another popular type of optional car insurance policy popular among Oakville drivers. It will help if your vehicle is damaged for reasons other than an auto accident. Expenses covered by comprehensive insurance can include theft, vandalism, fire, water damage, or even hitting an animal like a deer. Again, you may also be required to carry this if your vehicle is leased or financed.

One more type of optional car insurance coverage popular among Oakville drivers is accident forgiveness. Accident forgiveness is additional coverage that can be added to your car insurance policy as an endorsement to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim. Note: coverage varies by province.

Also known as depreciation coverage, waiver of depreciation ensures you're covered for the full value of your vehicle without factoring in depreciation. For example, if your car is stolen or totalled in a serious accident, you'll be reimbursed by your car insurance providers for the cost of a brand-new vehicle, not just what it's worth after wear and tear.

If you ever get into an accident and your car needs repairs, loss of use coverage has your back. While your car is in the shop, this coverage helps pay for other ways to get around—whether that's hopping on public transit, using ride shares, or driving a car rental. It can be a real lifesaver, especially if your car ends up being out of commission for days or even weeks.