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 as experienced of a driver as you may be, you can never be sure of what or who you’ll encounter on the road. Accidents do happen. Some things are out of our control. But what we do have in our control is the measures we have set in place in the event an accident should ever occur.
When you have an Ontario car insurance policy that’s right for you, you’ll have the comfort of knowing that you are protected no matter what happens on the road. Navigating through all the available policies can be tedious and confusing – and you shouldn’t have to do it on your own. An insurance broker will take care of the hard part for you by shopping dozens of insurance companies to find the best car insurance coverage at a price that fits your budget.
What is car insurance?
Car Insurance, or auto insurance, is insurance coverage for cars and 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?
Anyone who owns a vehicle needs car insurance. In Ontario, car insurance is mandatory, and legally everyone is required to have car insurance to drive. If you do not have car insurance and are in an accident, you will have to pay for the damages out of pocket. You could also be heavily fined if you drive without insurance.
Be sure to speak with an insurance broker who will find you the best insurance coverage tailored to you to ensure you and your vehicle are properly protected.
Is car insurance mandatory in Ontario?
Yes. Car insurance is mandatory in Ontario. Driving without car insurance may cost both the owner of the car and the driver up to $50,000 in fines, license suspensions and vehicle impoundment.
How is my car insurance premium calculated?
There are multiple factors that your insurance provider will consider upon calculating your car insurance premium. Your driving experience as well as the make, model and age of your car are some of the heaviest weighted influencers. Other things that will be taken into consideration are your driving record, who else will be driving the car, and where you live. Your insurance provider is calculating risk by determining how likely it is that your car will be involved in a collision or stolen and how expensive it will be to repair or replace.
What is a car insurance deductible and how does it work?
A car insurance deductible is the amount of the cost that 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 your car requires $2,000 worth of repairs, you will have to cover $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. For example, a policy with a $1,000 deductible will cost the driver less annually than if the deductible on the policy were $500.
What does car insurance cover?
Car insurance provides liability coverage for property damage and bodily injury, collision and comprehensive coverage to repair a vehicle if it is damaged, and accident benefits coverage for items such as lost wages and medical bills as a result of an automobile accident.
There are many additional insurance coverages available and there are always opportunities to increase your coverages on your auto insurance policy. Speak with an insurance broker and they will be sure to walk you through all of your options and ensure you have the best insurance coverage for your vehicle.
Physical Damage Protection
Physical damage protection is an additional coverage that you can choose to be added to your car insurance policy. This coverage is highly recommended if your vehicle is new or has costly parts to replace. Physical damage protection includes comprehensive coverage, collision coverage, and all perils coverage.
- Comprehensive Insurance Coverage: This type of coverage will simply protect your vehicle from damage as a result of fire, theft or vandalism.
- Collision Coverage: With collision coverage your vehicle will be protected from damage due to an accident caused by you or if someone damages your car that does not have insurance. You will also be protected in the event that you are unable to identify who caused the damages to your vehicle.
- All Perils Coverage: This type of coverage offers the most protection. It combines the coverage found in collision coverage and comprehensive insurance coverage. It further protects you in the event that your vehicle is damaged by a person that lives in your household or even if an employee steals your vehicle.
Having loss-of-use coverage will ensure that in the event of an accident, you receive a rental car while your vehicle is being repaired whether the accident was caused by you or someone else. This endorsement to your policy helps your collision affect your life a little less – you will still have the convenience of getting from point A to point B, unaffected, just as you would on any other day. This type of coverage is very easy to add to your automobile insurance policy. It’s also inexpensive. In your annual premium, to add loss-of-use protection you would pay about the price of what it costs to rent a car for one day. In our experience (and we’re sure yours too), repairs can be much lengthier than one day. Loss-of-use protection would cover you for the entire length of your car’s repairs. This can save you hundreds of dollars in the event that an automobile claim leaves you without a vehicle.
Accident Forgiveness Protection
Did you know that one at-fault accident can cause your automobile insurance rates to increase by hundreds of dollars? A policy with accident forgiveness protection would prevent your automobile insurance premiums from increasing in the event of your first at-fault accident. It would be like the first accident never happened and the driving record on your existing policy would not be affected. This translates into protection from skyrocketing premiums after your first at-fault accident. Most importantly, this extra coverage is inexpensive. Often times it usually only works out to approximately $5 per month and is worth the peace of mind of knowing that your car insurance premiums will remain where they are.
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 disbursed to you to replace your vehicle. This amount would be much lower than what you paid to purchase your car brand new. Vehicle depreciation coverage ensures that you will receive the value of a new vehicle when it comes to replacing your brand new car.
Do I need third-party liability coverage?
Yes. In Ontario, you are required to have third-party liability coverage on 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 brokers recommended 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 such expenses.
Can I get short-term car insurance coverage?
Short-term coverage exists and is available to you if you do not need an entire year of coverage, however not all insurance companies offer this type of coverage. If you opt into a year-long policy and choose to cancel it mid-way you may have to pay cancellation fees. A broker will be able to help you identify a policy that covers you for the period of time that you need and help you avoid cancellation fees.
Will my car insurance premiums decrease considerably at the age of 25?
Yes and no. There are many car insurance myths that exist our 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 rent a car am I covered by my personal auto insurance?
Yes. Your personal car insurance transfers over to a rental car. 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. Speak to an insurance broker who will find you coverage that protects you in all circumstances, even a rental car situation.
Do traffic tickets affect my car insurance premium?
Usually. Anything that negatively impacts your driving record will also negatively impact your car insurance premium. Minor traffic tickets may have no impact or make 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.
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 well as your budget. Get your personalized car insurance quote by filling out the form on our website, or by giving us a call at 1-800-463-8074. You’ll be so happy you did!
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.
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