Facts About Car Insurance

It pays to know what your insurance policy covers and what options you have to increase your coverage.

Your Ontario Automobile Insurance Policy provides basic compulsory coverage. You may also purchase optional coverage and increased amounts of coverage, based on your own needs and circumstances.

Ontario has a no-fault automobile insurance system, which means that you collect from your own insurance company, even if you are not at fault. It also means you may be charged for an at-fault accident even if your own insurance company pays nothing.

Compulsory Coverage : This is the required coverage you must have in order to legally drive in Ontario.

Liability Coverage : This protects you or other insured persons for amounts that the law holds you responsible for if someone else is killed or injured or their property is damaged.

Accident Benefits : If you or another insured person is injured because of an accident, you may be eligible to receive:

   Income Replacement ­ compensates you for lost income.

    Non-Income Earners ­ compensates you if you suffer complete inability to
    carry on a normal life.

    Educational Disability ­ compensates you if you are unable to continue in an
    educational program.

    Caregiver Benefits ­ compensates you if you cannot continue to be the main
    caregiver for someone in your household under 16 years of age or who is disabled.

    Medical & Rehabilitation Expenses ­ compensates you for medical and
    rehabilitation expenses not covered under any other health plan.

    Other Expenses ­ compensates you for miscellaneous expenses caused by your
    injury.

    Death & Funeral Benefit ­ compensates survivors of a person who is killed.

Uninsured Automobile : Covers you or other insured persons if killed or injured by an unidentified or uninsured motorist. Coverage is also provided for damage to your automobile and contents if caused by an identified, uninsured automobile. Direct Compensation ­ Property Damage ­ Covers you for damage to your automobile and the property it is carrying when another motorist is responsible for the claim.

Optional Coverage : These are optional coverages you may wish to purchase in order to increase your insurance coverage.

Loss of Damage to Your Automobile : There are 4 types of coverage that will pay for loss or damage to your automobile.

Specified Perils : Covers the insured automobile against loss or damage caused by fire; theft or attempted theft; lightning, windstorm, hail or rising water; earthquake; explosion; riot or civil disturbance; falling or forced landing or aircraft or parts of aircraft; or the stranding, sinking, burning, derailment or collision of any kind of transporting, or upon which, the automobile is being transported.

Comprehensive : Covers the insured automobile against loss of damage outlines under specified perils and loss or damage caused by falling or flying objects, missiles, and vandalism. An example of a common comprehensive claim is windshield damage.

Collision or Upset : Covers the insured automobile against loss or damage caused by collision with another object or should it tip over.

All Perils : Combines the Collision or Upset and Comprehensive coverages