If you own and operate an automobile, you are required by law to insure it. The mandatory coverage in Ontario is comprised of:
If you are responsible for an accident causing injuries or fatalities, or if your vehicle damages someone else’s property, you may be legally responsible.
You lose control of your vehicle on ice and cross the center line striking a van head on.
Role of Liability coverage
Your insurer will defend you in case of a civil law suit and will make any payment required by law on your behalf, up to the amount specified in your policy. Minimum coverage for Third-Party Liability is $200,000, but most drivers choose $1 million.
What is it?
This coverage applies if you are the owner of a vehicle and you are involved in an accident in Ontario where you are not entirely at fault, and at least one of the other vehicles involved is insured under a motor vehicle liability policy issued by an insurance company licensed in Ontario
Role of the Direct Compensation – Property Damage coverage
Your insurer will pay you for repairs to your vehicle and its contents and compensate you for loss of use of your vehicle. The amount payable will be determined by the degree to which you were not at fault.
If both you and the other party are deemed equally responsible (50%-50%), you will receive your indemnity from your own insurance company.
You will receive half the amount under Direct Compensation (this is the portion for which you were deemed not responsible); the other half is covered under the Collision section, if you have this coverage.
In both cases a deductible may apply.
What is it?
This section of your insurance policy covers you in the event of an accident with an uninsured driver or unidentified vehicle causing injury to you or damage to your vehicle.
Role of the Uninsured Automobile Coverage
The role of this coverage is to enable you, under certain circumstances, to collect compensation directly from your insurer when a third party carries no insurance or cannot be identified.
Without this coverage, you would be in a weaker position to make claims in the event of an accident with another driver who does not carry insurance or is not identified.
Note: Damage to the vehicle caused by a hit-and-run is not covered under this section.
What is it?
If you (or any other person entitled to benefits under this coverage) are in an accident, regardless of who is at fault, this may cover a portion of the incurred expenses.
The expenses that may be covered following an accident are:
Death benefits may also be paid.
In case of discrepancy between the information provided on this website and your insurance policy, your insurance policy prevails. Remember, the exclusions and limitations specified in your policy apply in all circumstances.
The information and examples provided in this section are intended as general information only. This does not constitute legal or insurance advice, nor does it pertain to determination of fault. In all cases, you should speak to an insurance advisor before acting. Your insurance policy contains limitations and restrictions which vary by province and may affect your coverage and/or determine whether or not benefits will be payable.