Ontario Automobile Insurance Overview

Compulsory Coverage Highlights.

Liability

Protects you if someone else is killed or injured or their property is damaged. It will pay for legitimate claims against you up to the limit of your coverage, and will pay the costs of settling the claim.

You are legally required to carry a minimum of $200,000, but most brokers will recommend you consider increasing this coverage. Liability limits of $1 million or $2 million are common, as the additional charge for this added financial security is nominal in most cases.

Accident Benefits

Provides benefits If you are injured in an automobile accident, regardless of who caused the accident.

These benefits include:

• Supplementary medical care, rehabilitation, and other care
• A tax-free income benefit for wage earners or self-employed
• An allowance to those who have no income from employment
• An allowance when a caregiver is injured
• A basic amount of coverage is mandatory, and you have the option of purchasing an increased level of benefits.

Uninsured Automobile

Protects you if you are injured or killed by an uninsured motorist or by a hit-and-run driver.

Covers damage to your automobile caused by an identified motorist, or an unisured automobile.

Direct Compensation - Property Damage

Protects you against damage and loss of use to your own automobile, its equipment and contents based on the percentage of an accident that is determined to be the fault of another driver. This section of your automobile policy is called 'Direct Compensation' because your own insurance company will pay the cost of damages incurred, including loss of use, for that portion of the accident for which you or another person legally entitled to operate your vehicle was not at fault. The cost of repairs to your vehicle, for the percentage of an accident that you are determined to be at fault, are covered under section 7, loss or damage coverage of your own insurance policy. Repairs to your vehicle under this section of your insurance policy are subject to a deductible and certain conditions apply.

There are rules, however, for Direct Compensation to apply:

• The collision must occur in Ontario
• there must be at least one other identified vehicle involved in the crash causing the loss
• and the other vehicle must also be insured by an insurer which is licensed in Ontario or has signed a special agreement with the Financial Services Commission of Ontario to provide this coverage.

If these conditions can't be fulfilled, then you'll have to rely on your collision insurance (if you have it), whether or not you are at fault.

This overview provides general information on auto insurance coverages and is not intended to offer advice on your particular insurance needs or coverages. For specific policy and coverage information contact Coughlin Insurance Brokers