Ontario Auto Policy Explained

Liability Insurance

Liability insurance is mandatory in order to drive a vehicle on the road in Ontario. This provides coverage in the event the Owner or Driver of the vehicle is sued as a result of an at fault accident causing injuries or property damage.

Accident Benefits

The Standard Ontario Auto Insurance Policy provides benefits to you if you are injured in a Motor Vehicle Accident. This coverage will protect you as driver of your own vehicle, a passenger in someone else’s vehicle or as a pedestrian. Your accident benefits may also extend coverage to another person who is injured in the same accident if they do not have their own Auto Insurance Coverage. Click here for Increased Optional Accident Benefits.

There are basic benefits that are mandatory when you insure your vehicle but there are Optional Increased Benefits you can purchase to best suit your needs.

Uninsured Automobile Coverage

Unfortunately there are vehicles on the road that are not Insured. If you have the unfortunate experience to be involved in an accident with another driver who is uninsured, your auto policy will provide limited coverage. A deductible of $ 300 applies to Physical Damage with a maximum payment of $ 25,000.

Direct Compensation – Property Damage

In Ontario, we have a “No Fault Auto Insurance System”. This is a little misleading name for the system as Fault is always assigned in an accident. Fault is predetermined in the Ontario Auto Insurance Act – Regulation 668 – Fault Determination Rules. The term “No Fault” only means that you go back to your own auto insurance policy to have you have your vehicle repaired regardless of who was at fault in the accident. In the event you are involved in an accident and you were not determined to be a fault, the Direct Compensation – Property Damage will repair your vehicle. No changes will be made to your auto rating as a result of a claim made under this coverage. No deductible applies for repairs made to the vehicle under this section of the policy.

Loss or Damage

Physical damage coverage for your vehicle is optional.

Specified Perils (excluding Collision or Upset)

Provides very limited coverage, most commonly – Fire, theft, lightning, windstorm, hail

Comprehensive (excluding Collision or Upset)

Is a very broad coverage that will cover most damage to the vehicle excluding Collision or Upset.

Collision or Upset

Provides coverage to repair your vehicle if the vehicle is involved in a collision. The collision can be with another vehicle, the surface of the ground or an object on the ground. Collision coverage is required to repair your vehicle, in the following situation:

  1. At Fault Accidents
  2. Hit and Run Accidents – Always report hit and run damage to the Police as soon as you notice the damage.
  3. Involvement in any accident, that occurs outside Ontario

All Perils

Is the Broadest coverage as it combines the coverages listed under Comprehensive and Collision.

A Deductible of $ 300, $ 500 or $ 1,000 usually applies to any physical damage loss.

OPCF # 44 – Family Protection

If you are involved in a Not At Fault Accident and are injured to the extent that you have the right to sue the Responsible Driver, the Responsible driver may not carry adequate coverage to pay a Court Awarded Settlement. OPCF # 44 may top up the coverage to a maximum of your own Liability limit.

This provides a summary of the coverage available under your Ontario Auto Insurance Policy. The full terms, conditions and limits are fully outlined in the OAP1: Ontario Automobile Policy Owner’s Policy found at the following link. http://www.fsco.gov.on.ca/en/auto/forms/Pages/oap1_forms.aspx