Ontario Law stipulates that all vehicle owners have an auto insurance policy. A vehicle owner can purchase auto insurance from any insurance company/broker or agent, but he/she should do some research to find the right insurance coverage that meets their needs. There are six important things you should consider when selecting your agent, broker or insurance company.
Your agent or insurance company should be licensed to do business in the province, should offer good rates, for the coverage and you should feel comfortable with the service they provide. Vehicle owners should also be aware of their Claims or Accident Forgiveness criteria.
An auto insurance policy sets out the rights and obligations of the insured, and of their insurance company, related to coverage, and the terms and conditions of that coverage.
Mandatory coverage includes:
Liability provides coverage when you or another driver is responsible for an automobile accident that results in property damage, injury or death. It will pay for claims as a result of lawsuits against you up to the limit of your coverage, and will pay the costs of settling the claims. By law you must carry a minimum of $200,000 in Third-Party Liability coverage but options exist to increase the minimum amount to $1 million or $2 million.
Accident benefits provide coverage for medical, rehabilitation and attendant care benefits, funeral expenses, death and loss of income benefits.
Direct compensation property damage protects you against damage to your vehicle in the event of an accident that is not your fault or is only partially your fault. This amount is automatically included in your insurance premium.
Uninsured automobile protects you, the vehicle and its contents, in the event of an accident caused by an uninsured driver.
Optional coverage includes:
Increased liability you are considered legally responsible if someone causes injury or damage when using your car, even if you’re not present at the time of the accident. It also protects against legal responsibility if damage or harm occurs to a third-party.
Family Protection: This feature extends your coverage to not only include yourself, but also family members too up to the limit of your liability coverage. Family protection is standard in car insurance policies in almost all of Canada.
Collision coverage pays for damage to an insured vehicle caused by collision with another vehicle or with an object or a vehicle rollover.
All perils If damage is caused while your vehicle was stolen by someone in your household or someone you’ve hired to drive your vehicle (e.g., an employee), with all perils, this would be covered.
Comprehensive coverage for an automobile and all contents pays for loss or damage to an insured vehicle caused by events like fire, theft, vandalism, wind, hail, flood, flying or falling objects or impact with an animal. This does not pay for collision or damage of your vehicle caused by your repairman or employee who is using the vehicle at that time.
Specified Perils pays for losses caused by perils specifically listed in your policy. These perils can be fire, theft or attempted theft, hail, storm, lightning, flood, earthquake, riots, falling objects (from sky) or derailment or damage during transportation of vehicle.
Note: You may need to pay a deductible when you make a claim.
At AiA Insurance, we are dedicated to providing more than just reliable protection for your vehicle. We are committed to extend the protection to you, your passengers and your belongings.
Contact AIA’s operations in Toronto to get a quote on our available range of products and services.
