Ontario Car Insurance

Why buy car insurance in Ontario?

There are lots of benefits to having car insurance. Ontario drivers may find it helpful to know the following:

You are protected in case of bodily injury

If you are injured in an automobile accident, auto insurance can help. Even the most basic car insurance plans in Ontario provide financial protection against bodily injury. So if you or someone else involved in the accident requires medical attention following the collision, your insurance company may help you cover the costs of care. For example, your insurance provider can help you pay for medical expenses not covered by your health insurance policy, like prescription medications, rehabilitation, or physical therapy.

You are protected in the event of an accident

Auto accidents happen, and they can have serious repercussions. But with car insurance, you will be protected from the financial ramifications of an accident. This is because most auto insurance plans will cover the cost of repairing or replacing your car if it is damaged in an accident. For extra protection, consider adding collision coverage to your policy.

You are protected against theft

If you choose to include comprehensive insurance with your car insurance policy, your vehicle may also be protected in the event of its theft. Comprehensive coverage is a type of optional insurance coverage available to Ontario drivers. This type of coverage protects motorists against all kinds of non-collision events. Should you include comprehensive coverage you will be protected against damage caused by specific perils such as theft, vandalism, floods, falling objects, earthquakes, hurricanes, and more. Plus, by adding comprehensive car insurance (also referred to as parked car insurance) to your policy, your vehicle will be protected both when it’s parked and when it’s in motion.

You are in compliance with the law

One final reason Ontario drivers purchase car insurance is that it puts them in compliance with the law. Car insurance is mandatory in Ontario, and driving uninsured is not only dangerous but can result in fines, jail time, and licence suspensions. Avoid these risks by purchasing a car insurance policy that meets the minimum requirements set by the province of Ontario.

Mandatory car insurance in Ontario

It’s important for drivers to understand that car insurance is mandatory in Ontario. This means that if you want to drive a vehicle, you must purchase a valid car insurance policy. The definition of a valid policy in Ontario is one that complies with the minimum coverage requirements dictated by the province. These requirements include a minimum of $200,000 in third party liability coverage, in addition to uninsured automobile coverage, direct compensation - property damage coverage, and accident benefits coverage.

Furthermore, to buy car insurance in Ontario, drivers must hold a valid driver’s licence. They must also be prepared to provide a driver’s abstract (a record of their driving history), as well as information about any other people who may be driving your vehicle, such as your spouse or adult child. If you have questions about mandatory insurance coverage in Ontario, get in touch with BrokerLink today. One of our knowledgeable and friendly insurance advisors will be pleased to walk you through compulsory coverage in Ontario.

Driving without car insurance in Ontario

Since auto insurance is mandatory in Ontario, driving without insurance is illegal. If caught driving without insurance anywhere in Ontario, you could face serious consequences, such as:

Fines between $5,000 and $25,000 for a first offence
Fines between $10,000 and $50,000 for a second offence
Surcharges for fines
Risk of licence suspension

Ultimately, driving without insurance is simply not worth the risk in Ontario or anywhere else in Canada. So if you don’t currently have auto insurance, contact BrokerLink and we will help you find a policy that not only complies with provincial law but that meets your needs.

Standard auto insurance coverage in Ontario

All Ontario drivers must have a car insurance policy that meets the minimum coverage requirements laid out by Ontario’s provincial government. Standard car insurance policies in Ontario are those that meet these requirements. This means that they consist of the following four types of coverage: third party liability coverage, accident benefits coverage, direct compensation - property damage coverage, and uninsured automobile coverage. The experts at BrokerLink outline each type of mandatory coverage below:

Third party liability coverage

Third party liability coverage provides protection if you get into an accident that injures another person or results in property damage to another person’s property. Under this portion of your policy, you can receive compensation to pay for medical expenses associated with bodily injuries or repairs of a damaged car, as well as any legal fees or court fees up to the coverage limit. Ontario drivers are required to purchase auto insurance policies with no less than $200,000 in third party liability coverage.

Direct compensation - property damage coverage

Direct compensation - property damage coverage protects an insured car and its contents from the costs of property damage. This type of coverage only applies if the policyholder is not at fault for the accident that caused the damage. Direct compensation coverage gets its name from the fact that the insurer typically provides direct payment for the damage caused (such as to repair or replace a vehicle). To receive compensation under the direct compensation portion of your policy in Ontario, the incident must meet the following criteria: it occurred in Ontario, it involved multiple vehicles, and it involved at least one vehicle that participates in the province’s car insurance program.

Uninsured automobile coverage

Uninsured automobile coverage protects you and any passengers in your vehicle if you get into an accident with an at-fault driver who is uninsured or underinsured. This type of coverage also protects against hit-and-run incidents. Uninsured automobile coverage covers medical expenses relating to injuries, car repairs due to damage, lost wages, and more.

Accident benefits coverage

If you, a passenger, or a pedestrian requires medical attention following a collision, accident benefits coverage comes in handy. Protection is offered regardless of which party was at fault for the collision and can help cover loss of income, medical expenses, such as prescription medications, physical therapy, or rehabilitation, and more.

Optional Ontario auto insurance coverage

Beyond the (mandatory) coverage listed above, Ontario drivers have the option of including additional coverage in their policies. Though not required by law, these coverages offer added protection and peace of mind. A few examples of optional car insurance coverages that might be worthwhile for Ontario drivers are as follows:

Collision coverage

If you get into an accident with another car or object on the road, no matter which driver is at fault for the accident, collision coverage can help cover the costs. Under the collision coverage portion of your policy, your insurance company can help pay for any property damage that resulted from the collision, such as a damaged vehicle.

Comprehensive coverage

For added peace of mind, Ontario drivers may choose to include comprehensive coverage in their car insurance policies. While standard auto insurance coverage in Ontario provides some protection against accidents, it does not protect drivers from many other circumstances on the road. For example, if your car is stolen, basic car insurance won’t cover this. But if you purchase comprehensive coverage, you can be protected against perils such as theft, vandalism, water damage, falling objects, fire, and more. This means that in the event of theft, your insurance provider would help cover the costs of replacing it, rather than having to pay for a new one entirely out-of-pocket.

Accident forgiveness coverage

One final type of optional car insurance coverage popular among Ontario 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.

How auto insurance companies calculate car insurance premiums in Ontario

Insurance providers in Ontario consider a multitude of factors when calculating auto insurance premiums. Ontario motorists might find it helpful to understand which details insurers consider. That is why the BrokerLink team has put together a list of some of the most important factors impacting car insurance premiums in Ontario below:

Where you live (and work - if you drive to work)
Age
Make, model, and year of the vehicle
Claims history
Annual mileage
Driving experience
Driving record
Insurance History
Deductibles
Local laws
Vehicle usage
Gender
Marital status

Saving money on car insurance in Ontario just got easier

Car insurance should never break the bank. That is why BrokerLink is dedicated to helping Ontario drivers find competitive, affordable policies. Our expert insurance advisors will unlock auto insurance discounts you didn’t even know you were eligible for and shop around to ensure you get a reasonable rate. Plus, our advisors are always willing to share top tips for saving money on Ontario car insurance, a few of which are outlined below:

Increase your policy deductible

A general rule of thumb in the insurance industry is that increasing your policy deductible lowers your insurance premium. For those that don’t know, a deductible is the amount of money the policyholder is responsible for paying toward an insured loss before the insurer steps in. All insurance policies have a deductible and it’s up to you to decide what yours will be. Although raising it, even by as little as $500 or $1,000, is likely to reduce your rate, you should not do so if not within your means to do so. Contact BrokerLink to speak with an insurance advisor and learn more about the effects of increasing your Ontario auto insurance deductible.

Choose annual over monthly insurance payments

Another way to save money on car insurance in Ontario is to pay for your policy annually rather than monthly. Many insurance companies give you the option of paying in one annual installment or twelve monthly installments. But the issue with paying in twelve monthly installments is that many insurers charge administrative fees for every payment made. Therefore, paying for your policy in one lump sum typically ends up being cheaper than paying a small amount every month.

Bundle multiple insurance policies together

Our third tip for saving money on Ontario car insurance is to bundle multiple insurance policies together. Insurance providers like to reward loyalty, which is why policyholders who buy more than one policy from them may be eligible for a discount. Therefore, if you are looking to insure multiple cars in your household (e.g. your car and your spouse’s car), or buy car insurance on top of another type of insurance, such as business insurance, home insurance, or recreational vehicle insurance, we recommend purchasing it all from the same insurance company. Doing so could save you up to 15% per policy.

Install winter tires on your car

Installing winter tires on your vehicle is another money-saving tip. Winter tires are not mandatory in Ontario, but installing them on your car might make you eligible for an auto insurance discount of up to 5%. This is because insurance companies recognize that snow tires have superior capabilities during the winter, thereby reducing your odds of getting into an accident. If you are interested in a winter tire car insurance discount, our brokers can inform you about the specific conditions that must be met to qualify for a winter tire discount (e.g. some insurers might stipulate that all four winter tires must be the same model or that the tires must remain on your vehicle for a set time period).

Buy a hybrid or electric vehicle

Buying a hybrid or electric vehicle (EV) is another tip for saving money on car insurance in Ontario. Many auto insurance companies in the province have begun offering discounts to drivers of hybrid or electric vehicles as a way of incentivizing drivers to go green. Therefore, driving an EV may not only save you money at the gas pump, but it can also save you up to 10% on an auto insurance policy.

Enrol in driving school

Enrolling in an approved Ontario driving school is one final way for drivers (especially young drivers) to save money on auto insurance in Ontario. There are recognized driving schools all over Ontario, and graduating from one of them can result in major savings. This is because insurance companies recognize that taking driving lessons from a professional makes you a better, more responsible driver, thereby decreasing your odds of getting into an accident.

Tips for young drivers in Ontario

Are you a new or young driver in Ontario? We know it can be stressful, but with time, patience, and practice, we are confident that you will become a safe and responsible driver. To instantly improve your driving skills and develop smart habits, follow the tips below:

Drive slowly

Our first driving tip is to slow down. The slower you drive, the less likely you are to get into an accident because driving slowly gives you more time to react. What we mean by driving slowly is to obey the speed limit and take your time when accelerating, braking, turning, parking, or changing lines. We also suggest slowing down when you are driving in certain conditions, like inclement weather (e.g. fog, rain, and snow), at night when visibility is reduced, and through a construction or busy pedestrian zone.

Leave lots of space

Leaving lots of space around you is another tip for young Ontario drivers. Experts recommend two car lengths between your vehicle and the vehicle in front of you on a regular road and four car lengths on a highway. Doing this will give you more time to react or stop if needed and can help prevent an accident.

Limit distractions

Finally, all young drivers should take care to limit distractions while driving. Though it can be tempting to program your GPS, text and drive (which is illegal), or sip on a drink, doing so vastly increases your odds of getting into an accident. In fact, distracted driving is one of the leading causes of automobile accidents in the province. For this reason, we suggest putting your phone away, finding a radio station before pulling out of the driveway, and finishing any snacks or drinks before taking the vehicle out of park. This way, all of your focus can be on the road.

The benefits of working with a licenced Ontario insurance broker

Save time and money by finding car insurance through an insurance broker. The experts at BrokerLink are fully licenced, know the ins and outs of the car insurance industry, and will work to find you a great policy. Keep reading to discover three benefits of working with a broker:

Brokers operate independently of insurance companies

First, insurance brokers work independently of insurance companies. This allows us to put your customer’s needs above all else. We will make you our top priority, taking the time to listen to your unique needs so that we can find a policy that meets them.

Brokers do the work for you

The second benefit of working with a BrokerLink insurance broker is that they do the work for you. From the moment you get in touch, your dedicated insurance advisor will be committed to finding you a great policy. They will ask you questions about your needs, shop around on your behalf, and compare policies before presenting you with multiple great options.

Brokers have car insurance expertise

One last reason to work with a licenced Ontario insurance broker is the expertise they bring to the table. BrokerLink insurance advisors are fully licenced with years of experience helping Ontario residents just like you find quality car insurance policies. Take advantage of our invaluable expertise and resources by getting in touch today.

We’re in your community

Getting involved in the community is a big part of who we are. We live and work in your community. We love meeting our neighbours!

Local Ontario Insurance Links

If you’re a member of a group or association, you may be eligible for more discounts.

Contact us

At BrokerLink, we’re here to help you with any insurance needs you may have. Whether it’s insuring your home, car, business, recreational items, or pets, let us help you find the best coverage possible.

You can reach us by phone, email, or in person at any one of our locations throughout Ontario. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.

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