Ontario drivers must carry automobile insurance to stay in compliance with the insurance laws in the province. This required insurance includes a Third Party Liability policy as well as Accident Benefits coverage, Uninsured Motorist coverage, and Direct Compensation – Property Damage coverage to comply with Ontario laws.
Third-Party Liability Insurance
This coverage will pay for damages caused by the other party involved in an accident that is your fault. Ontario drivers must have a minimum amount of $200,000 in coverage, however because accident damages can add up quickly, many drivers choose to carry policies with $1-$2 million or more in coverage.
Third-Party Liability insurance will cover costs related to property damage, medical bills, death and funeral expenses, and loss of income as a direct result of the accident.
Accident Benefits Coverage
This insurance provides benefits to you and your family after an accident if you sustain injuries or are killed in the accident. This coverage can pay for things such as permanent disability if you are unable to return to normal work activities, payment of medical costs, funeral expenses, expenses for rehabilitation services, or survivor benefits if you are killed in the accident.
Uninsured Motorist Insurance
Uninsured Motorist coverage is just that – coverage that pays for damages that are caused by a driver who does not carry any auto insurance on their vehicle, or for damages that exceed the amount of coverage that the person is carrying. Since many people choose to have on the required amounts of coverage and many times accidents exceed that limit, this insurance is very beneficial.
Direct Compensation and Property Damage Coverage
One of the best coverages available to drivers, direct compensation and property damages coverage pays for your injuries and repairs after an accident if you are not at fault, while regular liability only pays for the other party’s damages. Without this coverage you could be left with thousands of dollars in car repairs or property damage with no help covering the costs.
When registering your vehicle in Ontario you will need to show your “Pink” card. This card serves as proof of insurance. The card must be kept inside of the vehicle at all times and shown when you are stopped by a law enforcement officer. It must also be brought forth to the Minister of Transportation each year when renewing your vehicle registration. Without this card you will not be able to register your vehicle.
No-fault insurance is a term you will become familiar with if you’re looking for car insurance. Ontario is a no-fault province, meaning if you are injured or your car is damaged in an accident, your own insurance company must handle your claim, no matter which party is the cause of the accident. You will not need to contact the driver who is at fault for compensation in Ontario because of the no-fault laws that are in place. If there are passengers in your car who are injured, each person that has insurance through an agency will need to contact their own insurance company for coverage. If the passengers don’t have a car insurance policy, your insurance company may handle the claim for them. The other car involved must also contact their respective insurance company to file a claim.
Not everyone has a car so if you need motorcycle insurance in Toronto or in the rest of Ontario get in touch today.
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