Get Auto Insurance In Ontario: A Step-By-Step Guide

Auto insurance is a legal requirement in Ontario, and it's important to understand the different types of coverage available and how to get the best deal. In Ontario, auto insurance is provided by private companies, and there are several mandatory types of coverage that drivers must have. These include liability coverage, accident benefits coverage, uninsured motorist coverage, and direct compensation property damage. There are also optional types of coverage that drivers can choose to add to their policy, such as comprehensive coverage and collision coverage. When shopping for auto insurance in Ontario, it's a good idea to compare quotes from multiple providers to find the best rate and coverage for your needs. Various factors can influence the cost of auto insurance, such as the make and model of the vehicle, driving record, and location. Additionally, there are ways to lower your auto insurance cost, such as by bundling home and auto insurance or taking advantage of discounts for safe driving.

Mandatory coverages: Third-Party Liability, Accident Benefits, Direct Compensation Property Damage, and Uninsured Automobile

In Ontario, all drivers are required by law to have four types of mandatory auto insurance coverage: Third-Party Liability Coverage, Statutory Accident Benefits Coverage, Direct Compensation-Property Damage (DC-PD) Coverage, and Uninsured Automobile Coverage.

Third-Party Liability Coverage:

This coverage protects you if you are legally liable for injuring someone or damaging someone else's property in an accident. It will pay for claims and lawsuits against you up to your coverage limit, which is a minimum of $200,000 in Ontario. You can choose to increase this minimum amount, and it is highly recommended that you purchase a higher limit. This coverage also includes legal fees and lawsuit settlements, property damage caused by your car, and the medical expenses of anyone you injure.

Statutory Accident Benefits Coverage:

This mandatory coverage provides you with benefits if you are injured in an accident, regardless of who is at fault. It includes supplementary medical, rehabilitation, and attendant care expenses, as well as caregiver, non-earner, and income replacement benefits. There are options to increase most of these coverages. Accident benefits also cover financial compensation in case of death or loss of a limb.

Direct Compensation-Property Damage (DC-PD) Coverage:

DC-PD coverage applies when your vehicle, or its contents, are damaged, or you lose the use of your vehicle due to an accident caused by another person. Even though someone else causes the damage, you collect the compensation directly from your own insurer, hence the term "direct compensation." Most policies don't have a deductible for this coverage, but you can add one to lower your premium. To be eligible for DC-PD coverage, the accident must have taken place in Ontario, involved at least one other vehicle, and at least one of the other vehicles must be insured by a company licensed in Ontario or have a special agreement with the Financial Services Regulatory Authority of Ontario (FSRA).

Uninsured Automobile Coverage:

This mandatory coverage protects you and your family if you are injured or killed by a hit-and-run driver or an uninsured motorist. It also covers damage to your vehicle caused by an identified uninsured driver. This coverage includes financial compensation for injuries or death caused by an uninsured or hit-and-run driver.

It is important to note that auto insurance requirements can change over time, so it is recommended to consult with a local qualified insurance representative or expert for up-to-date information.

How to save on auto insurance in Ontario

Auto insurance in Ontario is privatized, so it's worth shopping around to find the best deal. Here are some tips to help you save money on your auto insurance:

Don't Pay for Coverage You Don't Need

Only pay for what you need. For example, if your car is worth less than $2,000, it may not be worth purchasing enhanced insurance as any claims made may barely exceed your deductible payment. Also, consider whether your Ontario Health Insurance covers all medical, rehabilitation, and attendant care expenses associated with a car accident.

Compare Quotes from Different Insurance Providers

Comparison shopping is a great way to save money on auto insurance. Get quotes from multiple insurance providers and compare prices and coverage options to find the best deal for you.

Seek Out Insurance Bundles

You can often get a discount on your auto insurance if you bundle it with other types of insurance, such as home, boat, or business insurance. This is known as insurance bundling and can result in significant savings.

Reduce Your Vehicle Usage

If you can reduce the amount you drive, you may be able to get a discount on your insurance. This could include carpooling, taking public transit, or simply driving less often.

Ask About Potential Discounts

There are many potential discounts that you may be eligible for, such as alumni and professional association discounts, age-based discounts, and discounts for safety features like winter tires or security systems. Be sure to ask your insurance provider about any available discounts.

Maintain a Clean Driving Record

A clean driving record is key to keeping your auto insurance rates low. Tickets, traffic violations, and accidents will increase your insurance rates, so drive carefully and obey the rules of the road.

Choose Your Vehicle Wisely

The type of vehicle you drive can impact your insurance rates. When choosing a vehicle, consider its safety features, theft ratings, cost of repairs, and the likelihood of being in a collision. Older vehicles may also have lower insurance rates.

Take Additional Driver Training

Some insurance companies offer discounts to drivers who have completed additional driver training, such as a defensive driving course. Check with your insurance provider to see if they offer this discount and what courses they approve.

Pay Your Premium on Time

Paying your insurance premium on time can help you avoid penalties and fees, which can increase your insurance rates. If possible, pay your premium in a single lump sum, as paying monthly or quarterly usually incurs additional administrative fees.

Combine Insurance with Your Partner

If you live with a spouse or partner, combining your auto insurance policies can often result in a discount for both of you.

Be Loyal to Your Insurance Provider

Switching insurance providers mid-term can result in cancellation fees. Staying with the same provider for a longer period can also make you eligible for loyalty discounts.

Go Paperless

Some insurance providers offer discounts to policyholders who opt for electronic billing and services instead of paper statements and payments.

Increase Your Deductible

Your deductible is the amount you pay out of pocket if you need to make a claim. By increasing your deductible, you can usually lower your annual premium. Just be sure you're comfortable with the higher deductible amount in case you do need to make a claim.

How to choose an auto insurance company in Ontario

There are a few key things to keep in mind when choosing an auto insurance company in Ontario. Firstly, it's important to remember that there is no one-size-fits-all solution when it comes to car insurance. The best company for you will depend on your personal circumstances, driving history, and the type of coverage you need. With that in mind, here are some tips on how to choose an auto insurance company in Ontario:

• Shop around and compare quotes: This is one of the most effective ways to find a good deal on car insurance. By comparing quotes from multiple companies, you can see which one offers the best rate for the coverage you need. Online tools and insurance brokers can help you get quotes from multiple companies at once.
• Check customer reviews: Reading reviews from other customers can give you an idea of what it's like to work with a particular insurance company. Keep in mind that reviews may be skewed towards negative experiences, but look for patterns or common issues that multiple people have mentioned.
• Consider the company's size: Larger insurance companies tend to have more funds available to pay out claims, reducing the risk of not having enough money to cover all claims. However, smaller companies may be more flexible and better able to meet your specific needs.
• Look at their financial stability: Check if the company meets the minimum standards for financial stability and whether they have purchased reinsurance to protect themselves against major events. This can give you peace of mind that they will be able to pay out claims.
• Evaluate their customer service: How easy is it to get in touch with the company? Do they have multiple contact options, such as phone, email, and online chat? Are they responsive and helpful when you do reach out?
• Understand their claims process: Find out how the company handles claims and what steps you would need to take if you needed to make a claim. Look for a company with a straightforward and efficient claims process.
• Consider their coverage options: Make sure the company offers the type of coverage you need, whether it's basic liability or more comprehensive protection. Also, check for any additional benefits or discounts they offer, such as accident forgiveness or discounts for safe driving.
• Ask about discounts: Many insurance companies offer discounts for things like bundling policies, being a safe driver, or having certain safety features in your car. Ask about any potential discounts you may be eligible for to get the best rate.
• Check their ratings: In addition to reviews, look at the company's ratings from organizations like J.D. Power, which conducts customer satisfaction surveys for auto insurance companies. While these ratings may not be perfect, they can give you an idea of how the company is perceived by customers.

How to buy auto insurance in Ontario

Auto insurance is mandatory in Ontario, and all drivers are required by law to have Liability Coverage, Accident Benefits Coverage, Uninsured Motorist Coverage, and Direct Compensation Property Damage.

Step 1: Research Your Options

Before purchasing auto insurance, it is essential to understand the different types of coverage available and choose a reputable insurance company that meets your needs and budget. You can use online tools and comparison websites to get quotes from multiple insurance providers and compare their rates, coverage options, and discounts offered.

Step 2: Understand the Coverage Types

Ontario has specific mandatory coverages that your auto insurance policy must include:

• Liability Coverage: This protects you if you are responsible for injuring someone or damaging someone else's property in an accident.
• Accident Benefits Coverage: It provides financial compensation, including medical expenses, if you or your passengers are injured or killed in a car accident, regardless of who is at fault.
• Uninsured Automobile Coverage: This covers injury or damage caused by an uninsured or underinsured driver, including hit-and-run accidents.
• Direct Compensation Property Damage: This coverage pays for damage to your car and its contents when someone else causes the accident.

Step 3: Consider Optional Coverage

In addition to the mandatory coverages, you may want to consider adding optional coverages to your policy, such as Collision Coverage, Comprehensive Coverage, or Specified Perils Coverage, for additional protection. These coverages can help pay for repairs or replacement of your vehicle in various situations, such as collisions, theft, or damage caused by natural disasters.

Step 4: Provide Vehicle and Personal Information

When you are ready to purchase auto insurance, you will need to provide detailed information about your vehicle, including the make, model, and year. You will also need to provide personal information, such as your driver's licence number, driving history, and contact details.

Step 5: Finalize the Purchase

To finalize the purchase of your auto insurance policy, you will need to provide your licence number, vehicle identification number, and banking details. You may also need to submit any relevant documentation, such as a safety standards certificate or vehicle import forms, especially if you are a new resident of Ontario.

Step 6: Review and Manage Your Policy

Once you have purchased your auto insurance, be sure to review your policy documents carefully to understand your coverage limits and exclusions. You can also take advantage of online portals or mobile apps provided by your insurance company to manage your policy, view documents, and make any necessary changes or updates.

Additionally, remember to review your coverage regularly and compare rates from different insurance providers to ensure you are getting the best value for your money.

By following these steps, you can confidently purchase auto insurance in Ontario, ensuring that you have the necessary coverage to comply with the law and protect yourself financially in the event of an accident.

Auto insurance fraud in Ontario

• Maintain a safe distance from the vehicle ahead and always look beyond the front of your car while driving.
• If you suspect a staged collision, call the police and the Insurance Bureau of Canada's (IBC) confidential TIPS Line. You can also submit an anonymous tip to IBC online.
• If involved in a collision, take extra precautions by collecting the other driver's licence plate number, licence and insurance information, photographing the damage, and noting the other driver's behaviour for any warning signs.
• Use a reputable tow truck service with a licensing number and carefully read any documents before signing.
• When purchasing a used vehicle, select a reputable dealer and research the vehicle's history. Get a certified mechanic to inspect the vehicle before purchase and check IBC's VIN Verify Service to see if the vehicle has been reported as seriously damaged in a flood or fire.

In addition to the SFO, the Ontario government has proposed other measures to combat auto insurance fraud and lower premiums, including developing standard treatment plans for common collision injuries and creating independent examination centres for medical assessments. However, these proposals have faced criticism from personal injury lawyers, who argue that they will create unnecessary roadblocks for crash victims and complicate the claims process.

Frequently asked questions