Onlia’s guide to car insurance in Ontario
Understanding auto insurance in Ontario
Wherever you’re coming from, this guide will help you understand the basics of auto insurance in Ontario.
Car insurance companies in Ontario use a no-fault insurance system, just like Québec, New Brunswick, Nova Scotia, P.E.I. and Newfoundland.
No-fault insurance means that instead of approaching the other driver’s insurance company for the cost of damages after an accident, you’ll be reimbursed by your insurer. The no-fault system also helps you avoid lengthy and expensive legal battles, as you’ll only need to interact with your insurance company — they’ll handle everything else.
The insurance companies will then make a fault determination. Depending on the situation, you’ll either be considered fully at fault, partially at fault or not at fault. This affects what type of coverage is activated and whether your insurance premiums change after the accident.
With this in mind, the next thing you should know is what your mandatory insurance covers. Then, you’ll be on your way to finding the best auto insurance Ontario has to offer.
Will private insurers give you what’s mandatory to drive in Ontario?
While car insurance companies in British Columbia and Manitoba are government-run, and car insurance companies based in Saskatchewan and Québec are partially run by the government, all car insurance companies in Ontario are private sector. But even though car insurance packages in Ontario are set by the free market, a minimum amount of coverage is mandatory and included with any basic insurance package.
The minimum coverage you’ll need to put your car on the road is available with even the cheapest car insurance in Ontario. It guarantees you what you need, while also allowing for competitive rates between companies.
If you buy car insurance in Ontario, the mandatory coverage you receive includes:
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Uninsured Automobile
This protects you financially on multiple fronts: if you collide with an uninsured driver, if you’re the victim of a hit-and-run where the driver is unknown, or if a driver’s coverage limit isn’t enough to pay your costs.
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Third-Party Liability
This covers your legal liability even if you’re partially at fault for an accident. Anyone that suffered injury or property damage (a driver, passenger, pedestrian, or property owner), can pursue a legal settlement. Third-party liability coverage will pay for legal fees and any expenses you’re deemed responsible to cover.
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Accident Benefits
This provides medical, rehab and funeral costs to you, your passengers and anyone else injured in an accident. Most importantly, it protects you by paying for any medical costs that aren’t covered by the Ontario Health Insurance Plan (OHIP).
Premium car insurance options in Ontario
Collision insurance balances out your direct compensation by covering the cost of damages when you are at fault. This is highly recommended to ensure you’re fully protected no matter how an accident occurs.
Comprehensive insurance rounds out your policy by covering you for damages that occur in most other situations. This means anything that happens outside of a collision like objects falling on your car, fire damage, vandalism, harsh weather and even theft.
If you’re aiming for cheap car insurance, Ontario has specified perils coverage. This acts in the same way as comprehensive, but is less expensive and limits what’s covered. It’ll likely exclude events like vandalism or falling objects.
If you still need more to put your mind at ease, look into endorsements for extra protection. These can extend coverage to car rentals while your vehicle is being repaired and even stop your premium from going up after your first at-fault collision.
How the price of car insurance in Ontario is calculated
Generally, the average cost for car insurance in Ontario is $1,500 per year. Your unique price is calculated based on:
- Age
- Gender
- Location
- Car age & model
- Mileage driven
- How often you use your car
- Who else is driving your car
- Your driving record
- The number and types of claims you’ve filed
All this adds up to determine how likely you are to file an insurance claim, and ultimately, your insurance price. Learn more about what goes into calculating your car insurance premium.
Ways to save on car insurance in Ontario
Increase your deductible
Bundle your home and auto insurance
Take driving lessons
Reconsider your coverage
If your car has depreciated in value and is no longer worth much more than the deductible for collision or comprehensive insurance, it could be cheaper to discontinue those options and save up for a replacement.
Look into the cheapest cars to insure in Ontario
Once you find the best auto insurance in Ontario for your needs, talk to your provider about how they can work within your budget. They may be able to offer up advice on how to get the most from your auto insurance.
Get a quote from Onlia today to hit the road tomorrow. We’re always available if you need help along the way.