How Does Car Insurance Work in Ontario?
Mandatory and optional coverages- When it comes to how auto insurance works in Ontario, the first thing to note is that Ontario legislation requires every driver must have car insurance on their private passenger vehicle. Mandatory auto insurance includes minimum coverages which are as follows: third-party liability (coverage in case you are sued for 3rd party property damage or bodily injury), statutory accident benefit (also know as your personal injuries), Direct Compensation Property Damage (also known as no-fault insurance), and uninsured automobile insurance (coverage you must have to cover you in case the 3rd party has inadequate or no insurance). These requirements are built into all standard auto insurance policies that all insurance companies offer in Ontario. Drivers can choose to purchase non-mandatory coverages such as physical damage coverage for their personal vehicle, vehicle replacement coverage, rental car coverage when on vacation, accident record protection, depreciation protection, etc. Please see the charts below that give a break-down between the differences between mandatory auto insurance coverage and optional coverages.
Government regulated Auto insurance but a private insurance model- As noted, the provincial government of Ontario regulates what Ontario drivers must have in terms of auto insurance. However, the province of Ontario operates under a private insurance model. In this model, private insurance companies such as Tradition Mutual Insurance Company compete with other insurance companies, brokerages and agencies to sell government regulated auto insurance products.
Ontario’s no fault insurance system- It should be noted that auto insurance in Ontario operates under a no-fault system. Many think that since it is named a “no fault system” that it means that on one is deemed at fault in the event of a claim. This isn’t the case. In fact, this system requires that drivers look to their own insurance company when it comes to claim regardless of who is deemed at fault in the accident. This no fault system was developed because insureds were getting frustrated with having to deal with a 3rd party’s insurance company. Instead, an insured deals with their own insurance company. Unless damages exceed certain thresholds, insurance companies assume the costs and do not subrogate against other auto insurance companies. This no fault system helps claims to be processed much smoother and in the end saves legal costs and frustrations.
If you have any other questions concerning how auto insurance works in Ontario Canada, please take a few minutes to give some details about yourself. See the link below. After you do, Kyle Wijnands will be sure to reach out to you and discuss how he can get you cheap auto insurance with the very best customer service! He can also be reached directly at 519-393-3246.
"We have been with Tradition Mutual Insurance for 60 plus years Kyle is one of the BEST agents we have ever had Full marks on everything!"
I have my car insurance with Tradition Mutual Insurance and am very pleased with the rates as well as the service I have experienced. Kyle will be sure to provide you with excellent customer service answering any question you may have thoroughly and honestly. He has excellent communication skills and does well to ensure that your insurance needs are met and exceeded.
Kyle found me a much better fit for my auto insurance for a cheaper price and was very easy and pleasant to work with! Kyle was very prompt and responsive and never pushy or sales-y. Super great to work with!"
More than the cheapest car insurance but the best customer service and claim experiences you will find in Ontario, Canada