Why does Ontario law require you to carry uninsured motorist coverage?
Every year, thousands of uninsured drivers ride around Toronto. If one of these drivers hits your vehicle, they’re not going to have any coverages to pay for your injuries.
Thankfully, uninsured motorists can pay for your medical bills instead. Giving you the freedom to focus on fully recovering.
If you’re looking for auto insurance in Ontario, you need to read this guide. Along with uninsured motorists, there are other mandatory coverages that your policy needs to include. Don’t get caught without the coverages the law requires.
What are the auto insurance requirements in Ontario? Read on to find out.
Before Starting Auto Insurance in Ontario
Let’s start by going over the different registration laws as well as the requirements for new residents in Ontario. Your vehicle registration is going to include your vehicle permit along with your license plate.
In Ontario, the license plate relies on a plate to owner system. In other words, the plate will move with the vehicle owner.
When you sell or change vehicles, you’ll need to fully remove the plate and keep it with you. If you don’t plan on using the plate for another vehicle, you can return it to the Ontario DMV. However, if you’re getting another car, your old plate will be going on it.
Where Can You Buy Insurance?
Where can you buy auto insurance in Ontario? You’ll be able to choose from a variety of options!
You can get your insurance from a direct writer, insurance broker, or an insurance agent. Insurance brokers are going to be selling policies on behalf of multiple different insurance companies. They’re a great choice if you’re looking to find the best rate.
Insurance agents usually work with one specific insurance company. They’ll be experts and what their company can and cannot do.
Finally, direct writers are insurance companies that can offer you their very own insurance products. You can get more info here on how they operate.
Avoid Insurance Fraud
As you’re ready to set up your insurance policy, make sure you’re using a licensed agency or broker. The financial services commissions of Ontario works hard to regulate the insurance industry.
Take a quick trip to their website to see whether or not the company you’re considering has an active license. If you’re going to be using an insurance broker, you can visit the registered insurance brokers of Ontario website to verify their license status.
Third-Party Liability Coverage
Third-party liability coverage is going to protect you if you cause an auto accident. Think of it as a way to protect your money.
Any fatalities, injuries, or property damages can be charged against the liability coverage instead of your direct assets. Your liability coverage can also help pay for lawsuits, making it easy for your company to settle the claims.
The law requires you to carry at least $200,000 of third-party liability coverage. However, you’ll probably want to increase those coverage limits depending on your needs.
Statutory Accident Benefits Coverage
Statutory accident benefits are going to provide coverage no matter who causes the accident. You can think of this coverage is something that protects your body. The coverage will help play pay for standard medical expenses and beyond.
For instance, you can get compensation for rehabilitation bills, the cost of hiring a caregiver, and the cost of attendant care. The statutory accident benefits coverage can also help with income replacement.
Let’s say you’re unable to work because of a car accident. Your statutory accident benefits coverage could help pay for the wages you lose as you work towards recovering. As with almost all coverages on insurance policies, you can always look to increase your statutory limits.
Direct Compensation and Property Damage Coverage
There’s also the direct compensation and property damage coverage to review. You can think of this coverage as a way to protect your vehicle.
If somebody else causes an accident, your property damage coverage will be there to help out. You’ll be able to receive compensation for all of the damages to your vehicle, including its contents.
For instance, if you had a laptop in the car when the crash took place, you might be able to receive compensation for the laptop. That would be, of course, if the laptop became damaged during the crash.
One of the reasons they refer to it as direct compensation is because you’ll be collecting the funds directly from your insurance company. In this situation, you won’t be seeking compensation from the at-fault driver’s insurance company, just your own.
Are Collision and Comprehensive Mandatory?
Collision and comprehensive coverages are completely optional and Ontario. As long as you’re the sole owner of the vehicle, it’s up to you whether or not you carry these coverages.
The game changes a little bit if you’re leasing a vehicle or you have a loan out on it. Your lender will probably require you to carry both comprehensive and collision coverages since these coverages protect your vehicle.
Collision coverage is exactly what it sounds like. It’s the coverage that’s going to pay for vehicle damages if you collide with something.
The collision can be your fault, or it can be the other driver’s fault. When it’s the other driver’s fault, you may have the choice to file through your company or seek recovery through their insurance company.
Comprehensive coverages are much broader. Comprehensive coverages take care of things such as theft, fires, and damage from animals.
Safe and Legal Auto Insurance
Taking the time to properly insure your vehicle means that you’ll be able to stay safe and legal. We hope that you never experience a car accident, but at least you’ll be prepared if disaster should strike.
Secure your auto insurance in Ontario today by reaching out to an insurance agent or broker. Take your time shopping around until you find a fair rate. For more ways to get great deals, you’ll want to check out another one of our blog posts.