What does car insurance in Ontario cover?

The Ontario government regulates coverage for car insurance. To make sure everyone has basic protection, certain coverages are required by law. There are also options to add to or increase your car insurance coverage. The best way to know what’s covered and what’s not is always to review your actual auto policy.

Car insurance in Ontario typically includes several mandatory and optional coverages designed to protect drivers, passengers, and vehicles. Here's what is commonly covered:

Mandatory Coverage (as required by law):

1. Liability Coverage:
   • Third-Party Liability: Protects you if you are responsible for causing injury or property damage to others in an accident. It covers legal expenses and damages for which you are liable. The minimum required limit in Ontario is $200,000, but many opt for higher limits (e.g., $1 million or $2 million).
2. Accident Benefits:
   • Provides coverage for medical expenses, rehabilitation, income replacement, and other benefits regardless of who is at fault in the accident. This can include:
     • Medical and rehabilitation expenses.
     • Attendant care.
     • Income replacement if you're unable to work.
     • Non-earner benefits if you are unable to carry on normal activities.
     • Caregiver benefits.
3. Direct Compensation – Property Damage (DCPD):
   • Covers damage to your car and its contents if you are not at fault for an accident. This coverage is only available if the accident occurs in Ontario and involves another insured vehicle.
4. Uninsured Automobile Coverage:
   • Protects you if you are injured or killed by an uninsured driver or if your vehicle is damaged by a hit-and-run driver. It also covers damages if an uninsured motorist is responsible for the collision.

Optional Coverage:

1. Collision Coverage:
   • Covers damage to your vehicle caused by a collision with another car or object (like a guardrail or tree) regardless of who is at fault. This is optional but recommended if your car is newer or has significant value.
2. Comprehensive Coverage:
   • Provides protection against non-collision-related damage to your vehicle, such as theft, vandalism, fire, or natural disasters (e.g., floods or hail). It covers events beyond your control.
3. Specified Perils Coverage:
   • Similar to comprehensive coverage but only covers specific events such as fire, theft, or damage from natural disasters. The perils must be named in your policy to be covered.
4. All Perils Coverage:
   • Combines both collision and comprehensive coverages, offering broader protection. It also includes coverage for loss or damage if someone in your household or an employee steals the vehicle.
5. Loss of Use:
   • Pays for a rental car or transportation costs while your vehicle is being repaired due to a covered claim.
6. Waiver of Depreciation:
   • Ensures that if your car is damaged or written off within a certain period after purchasing it new (typically up to two years), you will be compensated based on its original purchase price, not its depreciated value.
7. Emergency Roadside Assistance:
   • Provides services like towing, battery boosting, or lockout assistance if your vehicle breaks down.
8. OPCF Riders (Ontario Policy Change Forms):
   • These are add-ons that enhance or modify your policy. For example:
     • OPCF 20: Coverage for transportation replacement costs if your car is stolen or in for repairs.
     • OPCF 43: Waives depreciation on a new vehicle in case of total loss.

Car insurance in Ontario provides essential protection through mandatory coverages like third-party liability, accident benefits, DCPD, and uninsured automobile coverage. Drivers can also choose from optional coverages such as collision, comprehensive, and additional riders to customize their insurance.

For more information on the right coverage for you, call or email Aim Insurance today!