Ontario Car Insurance

Car Insurance In Ontario. Simplified.

Over 150,000 Canadians are injured on the road each year. This number only increases when counting the total overall collisions in Canada every year. The reality is that no matter how experienced you are at driving, you can never be sure of what or who you'll encounter on the road. Accidents do happen. Some things are out of your control, but what we do have in our control are the measures set in place just in case a collision occurs.

When you have an Ontario car insurance policy that's right for you, you have the comfort of knowing that you are protected. Navigating through all the available policies can be tedious and confusing—and you shouldn't have to do it on your own. Rather, one of our qualified car insurance brokers will take care of the hard part for you by shopping dozens of insurance companies to find the best car insurance coverage for your needs.

What Is Car Insurance?

Car Insurance, or auto insurance, is insurance coverage for cars, trucks and other road vehicles. Car insurance provides financial protection against physical damage or bodily injury that results from traffic accidents. Car insurance also provides protection against liability that could also arise from incidents in a vehicle.

Who Needs Car Insurance in Ontario?

Anyone who owns a vehicle needs car insurance. In Ontario, car insurance is mandatory. Legally, everyone is required to have car insurance to drive. If you do not have at least minimum coverage and are in an accident, you will have to pay for the damages out-of-pocket. You could also be heavily fined if you are driving a vehicle that is not insured.

Be sure to speak with a car insurance broker who will find you the best insurance coverage tailored to you to ensure you and your vehicle are properly protected.

What Does Standard Ontario Car Insurance Cover?

If you get into a car accident, car insurance can cover the driver, the passengers and any other people who are involved in the collision—depending on your policy. In Ontario, all drivers are required to have mandatory insurance coverage, although optional coverage is available for drivers who want more comprehensive protection. Minimum coverage includes the following:

Third-Party Liability Insurance

This section of your Ontario car insurance policy protects you in the event someone else's (a third-party) property is damaged, or he or she is physically harmed during an auto accident. It will protect you in case a lawsuit is filed against you, covering the cost of any legal fees. This coverage will also pay the costs of settling any claims. All drivers are required, by law, to carry third-party liability coverage, and our expert car insurance brokers recommend a minimum $2,000,000.

Statutory Accident Benefits Coverage

This part of your car insurance policy provides benefits in case you are injured in a collision—whether you caused the accident or not. These benefits can include:

• Medical expenses
• Rehabilitation
• Attendant care expenses
• Financial compensation, such as loss of income replacement

Direct Compensation—Property Damage Coverage

Also called DCPD coverage, this section of your policy covers damage to your vehicle and its contents. It also protects against the loss of use of your vehicle/contents in the event someone else was at fault for an accident. When a collision occurs, and you are not at fault, you're able to collect compensation directly from your car insurance company. That said, there are a few stipulations to DCPD coverage:

1. The accident must take place in Ontario.
2. At least one other vehicle must be involved in the collision.
3. Two or more of the vehicles involved are insured by an insurance company that is licensed in Ontario, or has signed a special agreement with FSCO (the Financial Services Commission of Ontario) to provide this coverage.

Uninsured Automobile Coverage 

This type of insurance protects you and your family in the event of an injury or fatality due to a hit-and-run or uninsured driver. It also covers damage to your vehicle caused by an unidentified or uninsured motorist.

Optional Car Insurance: Additional Protections

There are many additional insurance coverages that offer extra protection, and there are always opportunities to increase your coverage on your basic policy. When you speak with one of our expert car insurance brokers, they will walk through all of your options and ensure you have the best insurance coverage for your needs. Depending on your car insurance provider, you may be able to add-on the following levels of coverage to your current policy.

Physical Damage Protection

Physical damage protection is an additional coverage that you can choose to add to your car insurance policy. This coverage is highly recommended if your vehicle is new or has costly parts to replace. Physical damage protection is a general term for a group of coverages, including comprehensive coverage, collision coverage and all perils coverage.

Comprehensive Car Insurance Coverage

This type of coverage provides protection for your vehicle in the event it's damaged by something other than a collision with another vehicle or object. Comprehensive insurance coverage will cover the cost to repair vehicle damage or replace it entirely in case of:

• Fire
• Theft
• Vandalism
• Windstorm
• Glass breaking
• Collision with an animal

Collision Insurance

With collision coverage, your vehicle will be protected from damage if you're at fault for an accident with another vehicle or an object. There are options for how much coverage is available to you, and your trusted Morison Insurance agent can walk you through what limit is best for your policy. If you're not at fault for the accident, you'll be covered under the direct compensation—property damage coverage—included in your mandatory coverage. Even if you practice defensive driving and have a clean record, it's still possible you could wind up in a collision. Some objects you may collide with that would be covered with this addition to your policy include:

• Another vehicle
• A trailer attached to another vehicle
• Objects in or on the ground, such as a parking barrier or a street sign
• The ground itself, such as during a rollover

All Perils Coverage

This type of coverage offers the most protection. It combines the coverage found in collision coverage and comprehensive insurance coverage. Essentially, all perils coverage covers all causes of loss except those specifically mentioned as exclusions in your policy, which an insurance broker can make clear to you. This includes if your vehicle is damaged by a person that lives in your household or an additional driver. It also protects against loss or damage in the event your vehicle is stolen.

Loss Of Use Protection

Also called “transportation replacement,” this coverage will ensure that in the event of an accident you receive a rental car. You will have access to the rental while your vehicle is being repaired—whether the accident was caused by you or someone else. This endorsement to your policy helps your life continue as normal while your car is being repaired. You'll be able to take your children to school, go to work, and run errands as usual.

This type of coverage is also very easy to add to your automobile insurance policy. It's a more cost effective option than renting a car out-of-pocket since you don't know how long the repairs to your vehicle might take. Being in a car accident is stressful enough. With loss of use protection, you can alleviate some of that stress by ensuring you can still get around.

Accident Forgiveness Coverage

Did you know that one at-fault accident can cause your automobile insurance rates to skyrocket? A policy with accident forgiveness protection would prevent your automobile insurance premiums from increasing in the event of your first at-fault accident. Rather than having a stain on your driving record, it would be like the first accident never happened. The driving record on your existing policy would not be affected.

Accident forgiveness protection saves you from soaring premiums after your first at-fault accident. Most importantly, this extra coverage is the equivalent of one coffee per month—often working out to about $5 monthly. If you're an experienced driver with a good track record, it's worth the peace of mind of knowing that your driving record is protected.

Vehicle Depreciation Waiver

Are you thinking of purchasing or leasing a brand-new vehicle? You may want to consider vehicle depreciation coverage. A brand-new car depreciates very quickly in the first days and months of ownership. If you were to get into a serious accident soon after purchasing a brand-new car, your basic coverage would deduct depreciation from the amount given to you to replace your vehicle. This amount would be much lower than what you paid to purchase your car initially. Vehicle depreciation coverage ensures you receive the value of the vehicle as if it was still brand-new.

Frequently Asked Questions

Do you have questions about your car insurance premium? Navigating different coverages for your policy can feel a bit overwhelming—how do you know what's right for your needs? To help shine a light on car insurance coverage, our car insurance brokers have outlined a few commonly asked questions below. If your query isn't found here, we invite you to call our team at 1-800-463-8074. We're here to help.

Is Car Insurance Mandatory In Ontario?

Yes. Car insurance is mandatory in Ontario. If an uninsured driver is caught behind the wheel, it may cost both the owner of the car and the driver up to $50,000 in fines, license suspensions and vehicle impoundment. Not to mention, if you're involved in an accident and do not have insurance you will be personally responsible for any medical costs and repairs. If you're found at fault for the accident, you could wind up in serious legal trouble if driving without insurance.

What Factors Will Affect My Car Insurance Premium In Ontario?

There are multiple factors that your insurance provider will consider upon calculating your car insurance premium. By looking at these different factors, your insurance provider calculates risk by determining how likely your car will be involved in a collision, the likelihood of theft and how expensive it will be to repair or replace.

Factors that influence your car insurance premium include:

• The make and model of your vehicle: The type of vehicle you drive is one of the prime variables that determine your auto insurance rate. Luxury vehicles and new cars tend to be more costly to insure because they're more valuable.
• Your vehicle's age: Likewise, how old your vehicle is will impact your insurance premiums.
• Your driving record/history: Naturally, a big influence in establishing your premium is your driving record and history. Not only is being a proactive driver important for keeping the roads safe, but there are also many benefits if you have a clean driving record.
• Any additional/secondary drivers: Did your teenager just get his or her license? Or perhaps you're a one-car family? The amount of drivers using your vehicle will impact your premiums.
• Your postal code: If you live in a community where there are frequent vehicle break-ins or vandalism, that will impact your insurance premiums because there is a higher risk of your car getting damaged.
• Your age and sex: While there's a common misconception that your insurance premiums will lessen at the age of 25, age and sex do have slight influences on your insurance premiums. That may surprise some drivers, but the Financial Services Commission of Ontario (FSCO) has ruled the sex of a driver is a variable in how car insurance rates can be determined.
• Your marital status: Not all insurance providers factor marital status into your premium. A qualified car insurance broker at Morison Insurance will be able to provide further clarity on what does and doesn't impact your premium. Our goal is to find you the best possible coverage so you can always have peace of mind.

What Is A Car Insurance Deductible And How Does It Work?

A car insurance deductible is the amount of the cost you've agreed to cover on your own in the event of an accident, before your insurance company covers the rest. Very often, a standard deductible is about $500. For example, if after a collision your car requires $2,000 worth of repairs, you will pay $500 and your insurance policy will cover the remaining $1,500.

Usually, the deductible only applies if you are at fault for the accident. If you are hit by another driver, and they are found to be 100% at fault, you will not have to pay a deductible. Keep in mind that the lower your deductible is, the higher your insurance premium will be. To learn more about how your deductible impacts your insurance premium, speak with one of our car insurance brokers where we will happily take the time to discuss.

How To File A Car Insurance Claim In Ontario?

If you're in an accident, it's important you file a report with your broker, agent or insurance company as soon as possible. At the max, you need to file a claim within seven days of an accident. If you fail to provide a report within a reasonable amount of time, it's possible your claim may not be honoured.

When making an insurance claim, you need to provide the following information:

• Your policy number
• Make, model, year, registration and licence plate number
• Accident details, including the names and licence numbers of all drivers involved
• Date, time and location of the accident
• Extent of any injuries
• Extent of damage to the vehicle
• Number of involved passengers
• Names of insurance companies
• Details of car insurance policies of all drivers involved
• If the accident was reported to the police, include the name and badge number of the investigating officer

Do I Need Third-Party Liability Coverage?

Yes. In Ontario, you are required to have third-party liability coverage for your vehicle. This type of coverage protects you from the expenses associated with damage or bodily harm accidentally caused by you upon someone else (a third party). Our expert car insurance brokers recommend a $2,000,000 liability limit. Legal fees are especially easy to rack up should you ever be involved in a complicated claim, and this type of coverage protects you from unforeseen legal costs.

Will My Car Insurance Premiums Decrease Considerably At The Age Of 25?

Yes and no. There are many car insurance myths that exist out there, and this is a widely held belief that isn't entirely true. However, because of the tendency of drivers to become lower risk as they enter their mid to late twenties, you should witness a steady decline in your premiums over the years.

If I Hire A Rental Vehicle Am I Covered By My Personal Auto Insurance?

Yes, if you have the right coverage. Your personal car insurance can transfer over to a rental car if you have added the optional coverage on. However, rental companies do tend to offer their own insurance which can be more comprehensive than your personal auto insurance. In this type of circumstance, some drivers decide to opt into the rental company's insurance to avoid any costs to repair a car that isn't their own. This may also be beneficial to you while renting a car on vacation in another country. Speak to a car insurance broker who will find you coverage that protects you in all circumstances, even while renting a car.

Do Traffic Tickets Affect My Car Insurance Premium?

Yes, generally. Anything that negatively impacts your driving record will also negatively impact your car insurance premium. Minor traffic tickets may have a slight impact on your insurance premiums. Major tickets (like speeding in a construction zone) will raise your premiums more significantly. Any serious or criminal tickets (like driving under the influence) can cause colossal increases to your insurance premiums and some insurance companies may not even be able to insure your vehicle.

Is My Car Insurance Impacted If I Let My Friend Drive My Car?

You can let someone else with a driver's license drive your car, but be aware that when doing so you are taking all the risk and liability onto your own insurance policy. Regardless of whether your friend or family member is insured under their own policy, you would be liable for any accidents that occur in your car.

Is Ride-Sharing Auto Insurance Available In Ontario?

Yes. In fact, Ontario was the first province in Canada to approve an insurance policy for ride-sharing. If you work for a ride-sharing service like Uber, it's important that you make sure you have the proper coverage. As a driver offering a ride-sharing service, it's integral you have the correct insurance to keep your customers, your vehicle and yourself safe in case an incident happens while you're driving.

Where Can I Get A Car Insurance Quote?

At Morison Insurance we are more than happy to help you get the car insurance policy that's right for your coverage needs. As a family-run business, we take great pride in treating all our clients as extended family. When you choose Morison Insurance, you choose a company that truly has your best interests at heart. We're here to help you find the right car insurance policy that will give you peace of mind just in case you wind up in an accident, your vehicle is stolen or if your vehicle is otherwise damaged.

To speak with a dedicated car insurance broker at Morison Insurance and get your personalized car insurance quote today, we invite you to fill out the quote request form on our website, or give us a call at 1-800-463-8074.

This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.