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Car Insurance Ontario: What you Should Know

With numerous different insurance companies with different policies, it’s difficult to fully understand car insurance coverage in Ontario.

Why do you need car insurance?

Auto insurance policies make sure you and your vehicle are protected. It’s a mandatory purchase in Canada. If you drive without insurance, you will potentially face costly repercussions such as high fines, a suspended license and an impounded vehicle.

What does car insurance typically cover?

Ontario’s standard auto insurance policy provides four coverages required by law; third-part liability, statutory accident benefits, direct compensation-property damage and uninsured automobile.

  • Third-party liability coverage
    Determines the amount of coverage you have if you injure someone or damage their property.
  • Statutory accident benefits coverage
    If you become injured in a car collision, these benefits will help pay for medical expenses or offer replacement income if you can’t work.
  • Direct compensation-property damage coverage
    If your vehicle gets damaged in an accident, this part of your policy will cover damages and its contents. Though, this is applicable if another person was at fault for the accident.
  • Uninsured automobile coverage Makes certain you and your family are protected from reckless and uninsured drivers. This coverage will provide you with financial compensation if the uninsured driver causes injury or death to you or a family member.

How does no-fault insurance work in Ontario?

Ontario is a no-fault insurance province, which means if you are injured in an auto collision or your vehicle is damaged, you make a claim with your own insurance provider. No-fault insurance will help you get your claim processed much quicker rather than waiting for fault determination.

How do you buy car insurance in Ontario?

In Ontario, car insurance must be purchased from a private insurance company. As opposed to a public insurance system, this means you are able to shop around for different car insurance rates from different insurance companies. This is beneficial as you can compare rates and pick and choose which options you’d like to add to your policy. The more quotes the better, as you can have a better understanding of what the range of premium costs will be.  Buying any type of insurance is no easy task. For more buying tips, read our How To Buy Insurance post.

Car Insurance in Ontario can be expensive compared to other provinces. Though, our province’s insurance system is made to make sure all Ontarians have the coverage they need and insurance rates can continue to be affordable. Don’t hesitate to ask any questions when shopping for rates. Contact a Licensed Insurance Advisor today to help find an auto policy that best fits your needs.

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