Onlia’s guide to car insurance in Ontario
Understanding auto insurance in Ontario
Wherever you’re coming from, this guide will help you understand the basics of auto insurance in Ontario.
Car insurance companies in Ontario use a no-fault insurance system, just like Québec, New Brunswick, Nova Scotia, P.E.I. and Newfoundland.
No-fault insurance means that instead of approaching the other driver’s insurance company for the cost of damages after an accident, you’ll be reimbursed by your insurer. The no-fault system also helps you avoid lengthy and expensive legal battles, as you’ll only need to interact with your insurance company — they’ll handle everything else.
The insurance companies will then make a fault determination. Depending on the situation, you’ll either be considered fully at fault, partially at fault or not at fault. This affects what type of coverage is activated and whether your insurance premiums change after the accident.
With this in mind, the next thing you should know is what your mandatory insurance covers. Then, you’ll be on your way to finding the best auto insurance Ontario has to offer.
Will private insurers give you what’s mandatory to drive in Ontario?
While car insurance companies in British Columbia and Manitoba are government-run, and car insurance companies based in Saskatchewan and Québec are partially run by the government, all car insurance companies in Ontario are private sector. But even though car insurance packages in Ontario are set by the free market, a minimum amount of coverage is mandatory and included with any basic insurance package.
The minimum coverage you’ll need to put your car on the road is available with even the cheapest car insurance in Ontario. It guarantees you what you need, while also allowing for competitive rates between companies.
If you buy car insurance in Ontario, the mandatory coverage you receive includes:
Premium car insurance options in Ontario
Collision insurance balances out your direct compensation by covering the cost of damages when you are at fault. This is highly recommended to ensure you’re fully protected no matter how an accident occurs.