Understanding Auto Insurance Coverage in Ontario:
If you own a vehicle in Ontario, it’s essential to have automobile insurance coverage to protect yourself and others on the road. Here are the key types of coverage you must have:
1. Third-Party Liability Coverage
This coverage safeguards you if you cause injury to someone else or damage their property. It pays for claims resulting from lawsuits against you, up to the coverage limit.
The minimum required liability coverage in Ontario is $200,000, but you can choose to increase it for added protection.
2. Statutory Accident Benefits Coverage
Regardless of who caused the accident, this coverage provides benefits if you’re injured in a car crash. It includes medical, rehabilitation, attendant care, caregiver, non-earner, and income replacement benefits. Many of these coverages can be increased by choosing optional upgrades.
3. Direct Compensation – Property Damage (DC-PD) Coverage
DC-PD covers damage to your vehicle or its contents if you’re not at fault in an accident. Even though someone else caused the damage, you collect directly from your insurer. This coverage applies when the accident occurs in Ontario, involves at least one other insured vehicle, and meets specific conditions.
4. Uninsured Automobile Coverage
This coverage protects you and your family in case of injuries or death caused by a hit-and-run driver or an uninsured motorist.
It also covers damage to your vehicle caused by an identified uninsured driver.
Important Note: DC-PD coverage applies only if the accident meets specific conditions. If it doesn’t, you can claim your optional collision coverage (if you have it), regardless of fault. Alternatively, if you don’t have collision coverage, you may seek recovery from the at-fault driver.
Auto insurance is a legal requirement in Ontario, and these coverages ensure that you’re financially protected in case of unforeseen accidents. Remember, it’s crucial to assess your individual needs and consider additional coverage options for enhanced protection and peace of mind on the road.
Our agents at AiA Insurance are ready to help you. Contact one of our agent today.
