- Liability Insurance
- Accident Benefits
- Uninsured Automobile Coverage
- Direct Compensation – Property Damage
- Loss or Damage
- Specified Perils (excluding Collision or Upset)
- Comprehensive (excluding Collision or Upset)
- Collision or Upset
- All Perils
- OPCF # 44 – Family Protection
- Additional Optional Coverage
Ontario Auto Policy Explained
Ontario Law requires very specific coverage on a vehicle in order to drive a vehicle on the road. Mandatory coverages are:
Provides coverage in the event you are sued as the owner or driver of a vehicle that is involved in an at fault accident where there are injuries to another person or damage to property.
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, as 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 policy.
There are basic benefits that are mandatory when you insure your vehicle but there are Optional Increased Benefits you can purchase to enhance your coverage 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.
In Ontario, we have a “no Fault Auto Insurance System”. This name is a little misleading for Fault is always assigned in an accident. Fault is predetermined according to 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 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 at 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. Deductible may apply depending on the coverage you purchased.
Loss or Damage
Physical damage coverage for your vehicle is optional.
The Ontario Auto Policy does not require you to carry Physical Damage coverage to protect your vehicle. But the following coverages are available to purchase, to repair your vehicle in the event of an unfortunate incident.
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:
- At Fault Accidents
- Hit and Run Accidents – Always report hit and run damage to the Police as soon as you notice the damage.
- Involvement in any accident, that occurs outside Ontario
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. https://www.fsrao.ca/consumers/auto-insurance/understanding-automobile-insurance#policy