4 Types of Car Insurance You Should Consider In Ontario

4 Types of Car Insurance You Should Consider In Ontario

The responsibilities of car ownership include doing everything you can to maintain and protect your vehicle. Besides attending scheduled maintenance visits to your local auto shop, there is another major responsibility you have as a car owner and that is to obtain car insurance.

In general, having car insurance is mandatory by law in Ontario, Canada. The insurance provides you with plenty of benefits including covering legal fees, medical expenses, lost income, and car repair in case of an accident. It basically gives you peace of mind, knowing that both you and your vehicle will be protected in case of an unfortunate event.

Because there are different types of car insurance Ontario has to offer drivers, here is an outline of the most common ones you should consider in this Canadian province.

DCPD Insurance

Direct compensation for property damage (DCPD) is one of the main, required coverages that all Ontario drivers must have as part of their policy. It provides coverage for damages your vehicle sustains when someone else is wholly responsible for causing a collision.

However, there are certain conditions that must be met in order to receive the rightful compensation through this type of coverage.

  • You must prove that the accident wasn’t caused by you.
  • There needs to be more than one vehicle involved in the accident.
  • The accidents need to have happened in Ontario where all drivers involved need to be insured by an insurance company located in the province.

Liability Coverage

Liability coverage is another mandatory coverage all Ontario drivers must include as part of their insurance policy. It provides protection in case you are sued and found legally responsible for an accident that damages another person’s property or causes injury or death.

In other words, liability coverage is used to pay for any medical treatment or lost wages that may result from the collision. Also, it is used for damage to the other party’s personal property such as their car, the contents, or any buildings damaged in the accident.

It is important to note that liability insurance only covers the damage to other parties and not yours.

Uninsured Automobile Coverage

Uninsured automobile coverage provides protection in the event of a crash involving another driver who doesn’t have insurance. Whether the other party’s insurance expired, was canceled due to nonpayment or they have never bought the insurance in the first place, this coverage ensures you won’t be left without compensation after an accident.

The uninsured automobile coverage can also protect you in case the driver of the other vehicle cannot be located, such as in a hit-and-run.

So, if your vehicle is damaged, or you are injured or killed by an uninsured driver, this coverage will provide you with financial compensation. The minimum coverage is $200,000, but it can easily increase this limit to as much as $2 million.

Accident Benefits Coverage

Accident benefits coverage is another mandatory coverage Ontario drivers must have as part of their policy. It covers you in case of an injury during an automotive accident, as well as other drivers, passengers, bystanders, and pedestrians involved in the collision.

In addition to this, the accident benefits also offer coverage for:

  • Medical, rehabilitation, and attendant care benefits. These include expenses from things like physiotherapy and chiropractic services to hiring someone to help you bathe, groom, or dress.
  • Income replacement benefits. This covers any wages you lose if you are unable to go to work due to an accident.
  • Caregiver benefits. This is a benefit that applies if you are the primary caregiver in your household, but you have been badly injured in an accident and have to hire someone to care for your family.

Optional Types Of Car Insurance Coverage

While a basic auto insurance policy will get you started, it may not be enough. In fact, there are other optional types of car insurance coverage you should consider including in your policy so you can customize a plan that meets all your unique needs.

Some optional types of car insurance you should add to your minimum coverage include collision insurance, comprehensive insurance, gap insurance, umbrella insurance, and usage-based insurance.

black car parked near green trees during daytime

Final Thoughts

One of the main responsibilities of being a car owner is to have car insurance. This will provide you with protection in case you get involved in an accident and need to cover any expenses, legal fees, medical bills, and repair costs that may result from the collision.

If you want to gain a better understanding of all the types of vehicle insurance in Ontario, refer to our post and learn about the mandatory and optional car insurance coverages in the province.

Author: Flavia