Types of car insurance coverage in Ontario
The first thing you should know about driving in Ontario is that basic car insurance coverage is mandatory for all Canadian drivers.
Basic car insurance includes protection from the cost of damages as a result of a collision. A basic car insurance package includes:
- Third-Party Liability Coverage — Money to pay for damages incurred by someone not involved in the incident, like if you drive through a restaurant window.
- Statutory Accident Benefits Coverage — Money to pay for your medical care if you’re injured in a collision.
- Uninsured Automobile Coverage — Money to cover your costs if another driver involved the incident doesn’t have car insurance coverage.
As you can see from what’s covered by basic car insurance, it protects you against situations that were either not your fault or out of your control.
But what about situations where you were fully or partially at fault? This is where optional coverage will come in handy. And when we say optional, what we really mean is “can’t recommend strongly enough.
What’s usually covered when I get car insurance?Most drivers in Ontario will add some (if not all) of the available options to their car insurance package. These options include:
Collision insuranceSimilar to Direct Compensation coverage in that it covers the cost of damages, collision insurance covers the percentage of damages that you are responsible to pay, based on what percentage of the incident is deemed your fault.
It also covers any damage sustained to your vehicle in a single car collision, like if you drive into a tree or signpost.
Collision insurance averages $500 to $700, but can be more expensive if you own a high-end vehicle. Keep in mind that you can always lower your collision insurance premiums by agreeing to pay a higher deductible.
Comprehensive car insurance
Comprehensive car insurance kicks in to cover the costs of non-collision-related damage to your vehicle. While the cause could be anything from a flying golf ball to an alien invasion, the most common situations covered by comprehensive car insurance are:
- Falling objects
- Flying debris
- Harsh weather
- Natural disasters
Comprehensive coverage costs around $100 to $300 per year on average.
Direct Compensation — Property Damage
DCPD is part of no-fault insurance, and it provides coverage for drivers who aren't at-fault during a collision. Unlike standard liability coverage, you can make a claim directly with your insurer when the other party is at fault.
- Damage to your vehicle
- Value of the vehicle
- Loss of vehicle use
- Vehicle replacement
- Personal contents in the vehicle
There usually isn’t a deductible with DCPD.