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Auto Insurance

What is Auto Insurance

Auto insurance is insurance you purchase to protect yourself and others from the financial risks associated with driving and owning a vehicle. Auto insurance coverage protects you financially in case of physical damage, bodily injury, property damage, and liability that may arise from accidents or traffic collisions. In Ontario, minimum amounts of coverage are recommended for each sub-type.

Why do you need it?

Liability (Bodily Injured)

This coverage protects your legal liability if someone else is killed or injured or their property is damaged and you are found legally responsible for this action. This coverage will pay for legitimate claims brought against you. It will also pay for legal claims against you up tp the limit of your coverage and will also pay for the additional costs of settling the claims. As an example, these additional costs may include lawyer's fees.

Accident Benefits

This is a mandatory coverage. It covers the costs of injuries or if you killed in an automobile accident anywhere in Canada and the United States regardless of who caused the collision.

Uninsured Automobile

This coverage protects you if you are injured or killed by an uninsured motorist or a hit-and-run driver to the extent that you were not at fault. This covers damage to your automobile caused by an identified uninsured motorist.

Direct Compensation Property Damage (DPCD)

An important part of the Ontario auto insurance policy, this coverage allows for you to claim for damage to your vehicle caused by someone else. This coverage will provide to the extend that you are not-at-fault in a collision with another vehicle, your own insurer will pay for damage to your vehicle.

Collision or Upset

This important coverage pays for damage to your vehicle. You are covered in cases where you are at fault or damage has been caused by an unidentified vehicle or object. The deductibles for collision may range, some standard deductibles are often $500 or $1,000. Many lienholders and lessors will consider this coverage mandatory. Specifically, if they have an insurable interest in the vehicle (i.e. you are still making payments on the vehicle then coverage is mandatory).

What Determines How Much Car Insurance Costs?

Many considerations determine car insurance rates across Canada. Where you live, what you drive and your driving experience are only some of the factors that impact your insurance rates.

Here's what insurers consider when you get a quote:

Your driving experience

How long have you been driving? What level of graduated license do you have? Your rates lower the longer you've been insured.

Your age

Insurers see older drivers as lower risk - as you get older, you are more likely to be a more careful driver.

Your gender

Studies show that women are less likely to be in accidents.

Your driving record

Have you had tickets or accidents? Tickets and at-fault accidents indicate higher risk drivers and higher insurance premiums.

Your vehicle

What car do you drive - SUV or a sedan? How old is your car? Risks to newer cars are higher - so your insurance rates will most likely be higher.

Vehicle usage

Do you use your car to drive to work? How many kilometres do you drive annually?

Where you live

Insurers take where you live into consideration. If your neighbourhood has higher statistics for car theft and accidents, your insurance premium will reflect the higher risk.

Your car insurance coverage

The type of coverage you select will also impact your rates.

What Auto Insurance discounts are available?

Home and auto discount
Loyalty discount
Retiree discount
Mature driver discount
Low mileage discount
Graduated license discount
Increased deductible
Hybrid car discount
Telematics discount
Winter tire discount