Types of car insurance coverage in Ontario
Car insurance in Ontario is mandatory. It exists to protect you, your passengers and the other drivers on the road. There are a few types of coverage you’ll need before you can drive safely and legally in Ontario. Here are the mandatory car insurance coverages you’ll need in Ontario:
- Third party liability coverage – this coverage will kick in if you are sued for causing personal injury or property damage
- Accident benefits coverage – this coverage will protect you if you are injured in a car accident regardless of who was at fault.
- Direct compensation-property damage coverage – this will cover you if another vehicle hits you and you are not at fault.
- Uninsured automobile coverage – this protects you if you are injured in a hit-and-run accident or by an uninsured motorist.
The above coverages are mandatory. There is additional car coverage in Ontario that is optional. You might be thinking, “Why would I pay any more for car insurance than I have to?” The answer is, paying more now might save you money later. Here are a few of the optional car insurance coverages in Ontario you might want to consider:
- Collision - If you are involved in a collision with another driver or object, this coverage will take effect even if you are at fault.
- Comprehensive - There are risks your vehicle is liable to outside of a car accident. For example, theft, vandalism, fire and water damage are all events outside of mandatory coverage. Comprehensive coverage protects you from these risks.
- Accident forgiveness - Everyone makes mistakes. There are coverages available that take that into account. If you are involved your first at-fault accident, accident forgiveness means your rates won’t go up. In addition, you will maintain your good driving record as long as you stay with the same company.
- Waiver of depreciation - This is a coverage you might want to consider if you are purchasing a brand new vehicle. If your vehicle is stolen or an accident results in a complete write-off, you’ll be reimbursed for the cost of a brand-new vehicle.
Now that you know how many different types of car insurance coverages are available in Ontario, your next question is probably, “How much is this going to cost me?” It’s time to talk about the factors that determine the price of car insurance in Ontario!
Learn about the factors that can affect car insurance rates in Ontario
We’re going to give it to your straight: car insurance in Ontario is higher than most other provinces. There are a lot of reasons for this, including insurance fraud, distracted driving leading to more accidents and even extreme weather that has resulted in more claims.
Insurance companies consider many factors when determining a premium. Some of these factors include:
- Where you live: Insurance rates vary from province to province, city to city and can even vary by postal code
- Your age and driving experience: Typically the more experience you have the less you can expect to pay
- The type of car your drive: The make, model and year of your vehicle will impact the cost of your premium
There’s no way around paying for insurance if you want to drive in Ontario. But there are some factors within your control that can lower your bill. Here are some things you can do that might lower your insurance bill:
- Attend driving school: A drivers education course can have a significant impact on your insurance premium. It can also increase your driving confidence and make you a safer driver.
- Bundle up: We’re not talking about dressing warm. We’re talking about bundling home and auto insurance together. This can result in savings of up to 15 per cent on each policy.
- Invest in winter tires: Winter tires can result in savings of up to 5 per cent.
- Go with a broker: Okay, we admit it, we’re biased. But going with a broker can really result in long term savings. We know all the right questions to ask to make sure you’re getting the best possible rate. Plus, we know where all the great deals are hiding.
Benefits of having a car insurance broker in Ontario
Only 10 per cent of Ontario drivers report being very knowledgeable about elements of a standard auto insurance policy
The above quote is from a survey commissioned by the Financial Services Commission of Ontario (FSCO). This means that if you find car insurance confusing, you’re not alone. That’s what insurance brokers are for. We take the time to understand your unique situation and find a plan that makes sense for you. We are licensed professionals, which means you can trust we really know our stuff. We know what options are out there, and we can find ways to save money you might not think of.
A BrokerLink car insurance broker is someone you can trust. We can save you time and money. Talk to an insurance broker now to get the right car insurance coverage in Ontario.
Frequently Asked Questions on Ontario Car Insurance Brokers:
Are car insurance rates affected by my location?
Yes, they are. Auto insurance costs can vary depending on which province in Canada you are based. And because every province has its own insurance laws, the rates may be affected by the level of regulation in that specific province. Lastly, certain cities or locales may be deemed riskier in terms of the likelihood of automobile accidents, theft or vandalism incidents, which could mean higher insurance rates.
Is car insurance in Ontario mandatory?
Yes, it is. Ontario law requires every driver to have car insurance that includes minimum coverage, including: third party liability coverage, accident benefits coverage, direct compensation-property damage coverage, and uninsured automobile coverage.
What are examples of additional of optional car insurance coverage in Ontario?
Examples include collision coverage, comprehensive coverage, accident forgiveness, and waiver of depreciation. They are called additional, or optional, car insurance coverage because people often get them on top of the minimum coverage as required by Ontario law.
For more FAQs, visit the BrokerLink FAQs page.
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