If you own a vehicle in Ontario, it is the law to purchase — at the very least – automobile insurance coverage with these fundamentals.
Third-Party Liability Coverage
This protects you if someone else is killed or injured, or their property is damaged. It will pay for claims as a result of lawsuits against you up to the limit of your coverage, and will pay the costs of settling the claims. By law, you must carry a minimum of $200,000 in third-party liability coverage however options exist to increase the minimum amount.
Statutory Accident Benefits Coverage
This provides you with benefits if you are injured in an automobile accident, regardless of who caused the accident. This coverage includes supplementary medical, rehabilitation and attendant care, caregiver, non-earner and income replacement benefits. Options exist to increase most of these coverages.
Direct Compensation – Property Damage (DC-PD) Coverage
This covers damage to your vehicle or its contents, and for loss of use of your vehicle or its contents, if another person was at fault for the accident. It is called direct compensation because even though someone else causes the damage, you collect directly from your own insurer.
Remember: Coverage under the DC-PD section of your automobile insurance policy only applies if the following conditions are met:
- the accident took place in Ontario;
- there was at least one other vehicle involved in the accident; and
- at least one of the other vehicles is also insured by an insurance company that is licensed in Ontario or has signed a special agreement with FSCO (Financial Services Commission of Ontario) to provide this coverage.
If these conditions are not met, then you can make a claim on your optional collision coverage (if you have purchased it), whether or not you are at fault. If you don’t have Collision coverage, you may be able to pursue recovery from the at-fault driver.
Uninsured Automobile Coverage
Protects you and your family if you are injured or killed by a hit-and-run driver or by an uninsured motorist. It also covers damage to your vehicle caused by an identified uninsured driver.
In addition to the standard policy coverages you may also buy extra coverage for loss or damage to your vehicle including:
Specified Perils Coverage
This coverage pays for losses caused by one of the following perils: fire; theft or attempted theft; lightning, windstorm, hail, or rising water; earthquake; explosion; riot or civil disturbance; falling or forced landing of an aircraft or parts of an aircraft; or the stranding, sinking, burning, derailment or collision of any kind of transport in, or upon which an insured vehicle is being carried on land or water.
This pays for losses, other than those covered by collision or upset, including dangers listed under “Specified Perils,” falling or flying objects, missiles and vandalism.
Collision or Upset Coverage
This pays for losses caused when an insured vehicle is involved in a collision with another object, including another vehicle, or rolls over. “Object” includes: another vehicle or a trailer that is attached to the vehicle that is covered by your insurance policy; the surface of the ground, and any object in or on the ground.
All Perils Coverage
This combines collision or upset and comprehensive coverages. In addition, it covers loss or damage caused if a person who lives in your home steals the vehicle that is covered by your insurance policy. All “perils” also covers you if an employee who drives or uses, services or repairs that vehicle, steals it. For example, if you take your vehicle to a garage for repair and an employee doing work on your vehicle steals it, you are covered.