Auto insurance coverage

Mandatory Coverage

Third-Party Liability: If you are at fault for causing a car accident, third party liability will cover the damage to the other person’s property including bodily injury or death. Your auto insurance policy or auto insurance quote will always include third-party liability coverage because it is mandatory in all provinces and territories in Canada. The minimum liability limit in Ontario is $200,000 but most drivers have $1,000,000 or $2,000,000 limits.

Direct Compensation Property Damage: If your vehicle is damaged in an accident that is not your fault, your insurance company will cover the damage to your car, contents, and the loss of use of your vehicle.

Uninsured Motorist: Sometimes the driver at fault is uninsured, or unknown in the case of a hit-and-run accident. This coverage is for bodily injury to you and your passengers.

Accident Benefits: This coverage protects you, a passenger, or a pedestrian who is injured or killed in a car accident no matter who is at fault. Coverage may vary from one province or territory to another, but most include loss of income, funeral expenses, medical and rehabilitation expenses, and benefits for your family members if you are killed.

Optional Coverage

Collision: Covers loss or damage to the vehicle because of collision with another object.

Comprehensive: Covers damage to your vehicle for anything other than collision or upset such as fire, theft, vandalism, or windshield damage.

All Perils: Combines collision and comprehensive coverage. Coverage is all risk and it covers everything except what is specifically excluded in your policy.

Specified Perils: Combines collision and comprehensive coverage. Coverage is named perils and covers only those perils that are listed in your policy such as fire, lightning, theft, attempted theft, windstorm, hail, rising water, earthquake, explosion, riot, and damage to vehicle during transport.

Ontario Car Insurance Endorsements

OPCF 20 (Loss of Use): Covers the cost of a rental car while your car is being repaired or replaced up to the limit on your policy. This endorsement applies to loss or damage to the car from an insured loss and not because your car is in the shop for maintenance.

OPCF 27 (Legal Liability for Non-Owned Automobiles): Provides insurance for vehicles you operate but do not own. This can be a car you borrow or one you rent while on vacation. The endorsement applies to standard vehicles weighing up to 4,500 kilograms so keep this in mind when renting a truck for moving. The limits can range from $25,000 to $50,000. There is no coverage for drivers listed on the policy.

OPCF 39 (Accident Waiver/Forgiveness): Also known as accident protection or claims protection, this endorsement will protect your premium when you have your first at-fault accident. In other words, your premium will not increase because of the claim as long as you stay with the same insurance company.

OPCF 43 (Waiver of Depreciation): Your car insurance policy will pay actual cash value (replacement cost less depreciation) in the event of a loss. This endorsement removes the depreciation for new vehicles up to 2 to 3 years old depending on the insurance company. You must be the original purchaser on the bill of sale.

OPCF 44 (Family Protection Coverage): This coverage increases your Third Party Liability Limit when you are involved in an accident where you are not at fault and the other driver has no insurance, is underinsured, or cannot be identified as in a hit and run.