If you own or drive a car in Ontario it is mandatory to have active car insurance. The FSCO regulates the auto insurance industry in Ontario. There are heavy fines for driving without insurance. We may have often heard the term full coverage for car insurance. However, there is no such insurance cover as a ‘Full Coverage’. So, many motorists prefer to have layers of coverage. To protect against most perils. This would involve a mix of the optional coverage and the standard coverage.
When trying to get your car insurance up to the full coverage level it is also vital that you keep in mind the limits and premiums payable. You may have to consider the amount you invested in your car and the potential annual costs for maintenance, gas, etc. when you decide. It is also important not to get your car overinsured and left paying for coverage that you may not need at all.
As per law, there is some basic coverage that is mandatory for any auto policy in Ontario.
Third-Party Liability
This coverage will pay for any kind of damage caused to someone else. It could be bodily injury or damage to property or vehicle. As per law, you may have to have at least a $200,000 coverage limit. You could get more protection by raising this limit. You may do so based on how much you could afford to pay in premiums. It is very common to carry a coverage limit of $1,000,000 by most motorists. In the event of an accident, the hospital expenses and repair for vehicle damage could be huge. Having third-party liability coverage gives a better level of security. If there are any lawsuits against you are covered up to the limit of your policy.
In the event of an accident, the hospital expenses and repair for vehicle damage could be huge. Having third-party liability coverage gives a better level of security. You may be covered up to the limit on your policy to fight any lawsuits filed against you.
Statutory Accident Benefits
In an accident that injures you or any passengers, you may claim under statutory accident benefits cover. If you get seriously injured in an accident you may not be able to work for a period of time. You may claim for any related expenses. Such as medical bills, housekeeping and caregiver costs or hospital stay, etc. This cover can help to provide you with replacement income for eligible living costs.
This cover will pay for funeral expenses and death benefits in case of a fatality. You may claim under this coverage if you were at fault for the accident or some uninsured or underinsured motorist caused it. There are more levels of this coverage that you may add to your policy for more protection.
These may include increasing the benefits for this cover as follows:
- Medical, attendant care, and rehabilitation limits for non-catastrophic injuries can be increased to $130,000.
- Medical, attendant care, and rehabilitation limits for catastrophic injuries can be increased to $2,000,000.
- Medical, attendant care, and rehabilitation limits for all injuries can be increased to $3,000,000.
- The caregiver limit can be increased to the same as for those benefits for catastrophic injuries.
- Housekeeping expenses limit can be increased to the same as for those benefits for catastrophic injuries.
- Income replacement benefits can be increased to $600, $800, or $1,000 per week.
Direct Compensation – Property Damage Coverage
This coverage will help to pay for expenses to your car or its contents when there is damage due to a collision. There are certain conditions to claim under this coverage. The collision must happen in Ontario. At least one more vehicle must be involved in the accident. At least one of the other vehicles must have an insurance policy with a contract to provide this coverage.
Uninsured Automobile
Any damage caused to your vehicle due to another motorist who has no insurance can be claimed under this coverage. In the case of injury or death of passenger or damage to your car, that could be claimed for compensation.
What Are The Optional Coverage Available For Car Insurance
Apart from the standard coverage, you may also purchase some optional coverage as follows:
Specified Perils
Any kind of damage to your car due to specified perils on your policy will be covered. These include theft, riots, fire, lightning, hail, and storm. Falling off aircraft parts, sinking, and many other perils when listed on the auto insurance policy.
Comprehensive
This coverage can be claimed for damages not caused by another motorist. So, fire, theft or attempted theft, vandalism, falling objects, riots, etc. are perils for which this coverage can be claimed.
Collision
This coverage is for damages due to collision with another vehicle or object or rolling over of the vehicle. The other object may include a trailer attached to the car and covered by the insurance policy. The damage caused may be due to impact on the ground or any object on the ground. Your decision to add collision to your auto policy may depend on the maximum amount your insurer may pay you when you claim for a fault accident. And the car gets totaled.
All Perils
All Peril is a mix of comprehensive and collision coverage on your policy. It also allows you to claim when someone in your household steals your car that is on the policy. Or if a staff who drives, repairs or uses your car and steals it. For example, a garage worker who under the pretext of driving your car gets away with it.
A deductible is also payable while filing a claim under any of the above coverage.
There are also optional endorsements that motorists may choose to add to their auto policy.
- OPCF5 for leased or rented Vehicles
- OPCF20 for replacement of transportation
- OPCF27 for any liability for damage to automobiles not owned and other coverage
- OPCF43 for removal of the depreciation deduction
- OPCF44R for coverage for family protection
- OPCF48 in order to offset deductibles for tort
If you have decided on the coverage then it may be the right time to check our car insurance calculator and compare many quotes at the same time. Just plug in some details in our calculator and you could save money and time with convenience at your fingertips.
About the Author: Ashley Miller
