Car Insurance in Ontario, Explained

Kariuki Maina
By Kariuki Maina 39 Min Read

You are comparing as many quotations as you can in order to get the best deal on your auto insurance policy, which is due to be renewed. Or perhaps you want to know if it’s worthwhile to drop the optional coverage on your current insurance because of changes in your driving habits.

How does car insurance work in Ontario?What does “at-fault” mean in Ontario?Example of a partially at fault claimWhose coverage applies if I drive someone else’s car in Ontario?How much does car insurance cost in Ontario?Example cost breakdownMandatory car insurance coverageLiability (third party liability insurance)Direct Compensation – Property Damage (DC-PD)Statutory Accident BenefitsUninsured Automobile InsuranceOptional car insurance coverageLoss or damageWhat is comprehensive coverage?What is collision coverage (upset coverage)?What is specified perils coverage?What is all perils coverage?Optional Ontario policy change forms (OPCF) or endorsementsWhat is OPCF 5 – Rented or Leased Vehicles?What is OPCF 20 – Coverage for Transportation Replacement?What is OPCF 27 – Liability for Damage to Non-Owned Automobile(s)?What is OPCF 39 – Accident Forgiveness?What is OPCF 43 – Waiver of Depreciation?What is OPCF 44R: Family Protection Coverage?What is Added Coverage to Offset Tort Deductibles (OPCF 48)?What insurance applies if the other driver is unidentified (hit-and-run) or uninsured?What coverage applies if I am at fault or not at fault?What if I drive without insurance?What is not covered by car insurance?How to save money on car insurance in Ontario?Review and update the details of your policyRemoving collision coverageAsk about discountsRemoving comprehensive coverageIncreasing the deductibleReducing third party liability coverageWho regulates car insurance in Ontario?How to file an auto insurance complaint?Over to you

Your lifestyle and driving habits can help you choose which insurance coverage you require and which you can do without.


It describes how the no-fault system functions, how vehicle insurance prices are established, what each of the obligatory and optional policy components covers, and when it is financially feasible to drop the optional ones.

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How does car insurance work in Ontario?

In Ontario, as well as the rest of Canada, having auto insurance is a legal requirement for anybody who owns a car.

In the case of a collision or accident, having auto insurance protects you financially from having to pay for the repair, medical, and legal costs of:

  • claims brought against you by others involved,
  • repair or replacement to your vehicle, and/or
  • medical and rehab expenses resulting from injuries suffered,

which can end up being quite considerable.

A licensed broker, agent, or insurance provider are all places where auto insurance can be acquired. We advise using a local broker (find one on or an online rate comparison tool like to receive the best rates. Here, you may check to see if a supplier is authorized.

What does “at-fault” mean in Ontario?

No-fault insurance is used in Ontario, which means that regardless of who is ultimately found to be at blame for an accident, each motorist must file a claim with their own insurance provider rather than suing another party’s insurer directly.

According to Ontario’s Blame Determination Rules (the official rule), based on the type of collision and which automobile was involved, you may be deemed to be 0%, 25%, 50%, or 100% at fault. In a single collision, more than one motorist may be found to be at responsibility.

Percent at Fault Result for you and your vehicle
0% not even at fault. Your driving record won’t be affected, and your insurance cost won’t go up.

Your Direct Compensation – Property Damage policy includes coverage for your car (DC-PD).

25% somewhat to blame. Although the incident may appear on your driving record, it is unlikely that it would raise your insurance price.

DC-PD covers the majority (75%) of the not at fault part. If available, Collision will cover the at-fault share (25%) after the deductible. If not, it must be paid in person.

50% Somewhat to blame. The incident will appear on your driving record, which might raise your insurance rates.

After the deductible, the not at fault share (50%) is reimbursed by DC-PD. If available, Collision will reimburse the at-fault amount (50%) after the deductible. If not, it must be paid in person.

100% At-fault. Your driving record will reflect the incident, and your insurance premiums will probably go up.

If there is a deductible, Collision will cover your car. In such a case, repair or replacement must be individually funded.

If you are determined to be at blame, the accident will be noted on your record, your insurance company may raise your rates, and you will be liable for the harm and injuries it causes (unless your policy includes accident forgiveness).

Example of a partially at fault claim

You are in an accident where you are 25% responsible and your car, which is valued at $10,000, is a total write off. Here is how much you’ll receive toward a replacement car:

DC-PD covers the not at fault portion of the value of your vehicle (75% x $10,000 = $7,500), after 75% of the $500 deductible ($375), so you receive $7,500 – $375 = $7,125

You have the optional collision coverage with a $500 deductible, which will cover the at fault portion of the value of your vehicle (25% x $10,000 = $2,500), after 25% of the $500 deductible ($125), so you receive $2,500 – $125 = $2,375.

You pay a total of $500 in deductibles and receive a total of $9,500.

Whose coverage applies if I drive someone else’s car in Ontario?

In most cases, the insurance that is tied to the car is the one that offers coverage in the event of a claim. Therefore, when you let someone to use your car for a while, you are basically giving them your insurance. You will receive a record of the incident and a rise in your insurance rates if they are involved in an accident for which they are determined to be more than 25% at fault.

By including the extra OPCF 27 Liability for Damage to Non-Owned Automobile, you may expand your insurance coverage to include additional vehicles you rent or borrow (s).

How much does car insurance cost in Ontario?

According to the RATESDOTCA vehicle Insuramap, the average annual automobile insurance rate in Ontario as of December 2021 was $1,555.

The average cost of auto insurance in Ontario as of March 2021 was $1,651 (or $137 per month). According to the Financial Services Regulatory Authority of Ontario, it was $2,223 in the Greater Toronto Area, $1,564 in other metropolitan regions, and $1,289 in rural areas (FSRA). Between 0.7% to 1.3% less than in June 2020.

According to the Insurance Bureau of Canada, Ontario drivers paid an average of $1,505 yearly ($125 per month) in 2019. (IBC). The highest rate was $1,832 in British Columbia, while the lowest rate was $717 in Quebec.

The rate change requests insurers submit to the Financial Services Regulatory Authority (FSRA) on a quarterly basis determine how much auto insurance costs in Ontario. The demands are based on existing and anticipated operational costs, payments, risks, and earnings. To ensuring they are fair, reasonable, and not excessive is the responsibility of FSRA. All pricing modifications that they authorize are published.

Example cost breakdown

Here is my own analysis to give you an idea of how much each of the required and optional forms of vehicle insurance affects your overall premium payment.

Due to the numerous variables that determine your premium, the numbers will change from yours, thus this is just supplied as a guide.

Insurance Deductible Premium (2022) %
Liability ($1M) – Bodily injury $164 13.72%
Liability ($1M) – Property damage $8 0.67%
Direct Compensation-Property Damage (DC-PD) $0 $293 24.52%
Collision Coverage (Upset Coverage) $500 $247 20.67%
Comprehensive Coverage $500 $81 6.78%
Statutory Accident Benefits $195 16.32%
Uninsured Automobile Insurance $8 0.67%
OPCF 44R: Family Protection Coverage ($1M) $27 2.26%
OPCF 20 – Coverage for Transportation Replacement & OPCF 27 – Liability for Damage to Non-Owned Automobile(s) $95 7.95%
Total $1,195 100%

As a point of comparison, the figures above represent a 31-year-old Belleville, Ontario resident driving a 2016 Hyundai Elantra with roughly 200k miles that, according to a review of the used automobiles listed on AutoTrader and Kijiji, is presently worth about $10,000. Currently making a monthly payment of $99.59 ($1,194.24 annually).

Mandatory car insurance coverage

The following elements of auto insurance coverage are minimal requirements for drivers in Canada. If you have auto insurance, the following are covered:

  • Third party liability
  • Direct compensation – property damage
  • Statutory accident benefits
  • Uninsured automobile coverage

Liability (third party liability insurance)

Covers claims brought against you by other parties for their losses, property damage, or vehicle injuries while you are at fault.

a necessary element that pays for any costs that might arise if you are found to be responsible for the accident and a third party successfully sues you for damages.

A third party could be:

  • Driver whose car was damaged in the collision
  • Pedestrian, cyclist or driver who has been injured/killed
  • Neighbour or other property owner whose fence, foundation or other property were damaged
  • Passengers in your vehicle, including family members

And the costs may include paying for others’:

  • Medical care expenses (can include costs covered under OHIP)
  • Compensatory damages: pain and suffering ($370,000 maximum), mental distress, loss of income)
  • Punitive damages
  • Car repair or replacement
  • Property repair or replacement
  • and the associated legal expenses

Although the $200,000 minimum liability coverage mandated by law may seem large, the majority of drivers in Ontario have at least a $1 million enhanced limit, which implies they also have $1,000,000 coverage for the Family Protection Endorsement.

The costs can build up rapidly, and if the claims are for more than your insurance can cover, you are personally liable and may be required to liquidate assets or have your salary garnished to satisfy the difference.

You have the option of increasing the $200,000 minimum coverage to $500,000, $1 million or $2 million. The cost of doing so is small in most cases.

It does not cover the repair or replacement costs of your own vehicle. That is instead covered by the mandatory Direct Compensation – Property Damage (if you’re not at fault) or the optional collision coverage (if you’re at fault).

Direct Compensation – Property Damage (DC-PD)

Covers damages to your vehicle, its contents and property (lawn, fence) when you are not at fault for a collision.

A mandatory component that covers expenses for repair or replacement of your vehicle, its contents or the loss of use of your vehicle ( that arise in the event of an accident that you are not fully at fault for and if:

  • The accident was in Ontario,
  • One or more other vehicles were involved in the accident, and
  • One or more of the other vehicles are insured by a company licensed in Ontario

If the other driver was unidentified, such as in a hit-and-run, DC-PD does not apply. In this case you can choose to make a claim under the optional collision coverage (if you have it) regardless of whether or not you were at fault. If you do not have collision coverage, you may be able to sue the at-fault driver for recovery.

If the other driver/vehicle was uninsured, see uninsured automobile coverage.

You receive payment from your own insurance even though someone else caused the damage, so you don’t have to worry about filing a claim and may get paid right away. The majority of plans don’t demand a deductible before filing a claim.

What is a deductible?

A deductible is a sum of money you must personally pay to your insurance provider (out of pocket) before they will cover the balance of the cost of your claim. It either reduces the loss compensation or goes toward the cost of repairs.

You would pay $1,000 to your insurance and they would pay the repair shop that amount plus an extra $2,000 ($3,000 total) to replace your automobile. As an illustration, if an accident damages your car for $3,000 and your deductible is $1,000 to claim that amount, you would pay $1,000 to your insurer.

A bigger deductible might lower your rate, but a lesser deductible could raise it.

Statutory Accident Benefits

Covers expenses related to injuries resulting from a car accident, regardless of who is at fault and whether you’re the driver or victim.

A mandatory component that covers the following kinds of expenses due to injuries suffered by anyone involved in a collision regardless of who was at fault and may extend to others involved such as a passenger, pedestrian or cyclist:

  • Medical and rehabilitation expenses not covered by OHIP or disability insurance plans
  • Caregiver or childcare expenses if you can no longer provide care for a dependent
  • Attendant care expenses to have someone look after you if you are seriously hurt
  • Income replacement if you can’t work
  • Non earner benefits if an unemployed person can’t carry on a normal life
  • Death and funeral expenses if the insured person dies

The benefit amounts are outlined in the Statutory Accident Benefits Schedule (SABS) – part of the Ontario Insurance Act and claims are resolved by the Automobile Accident Benefits Service (AABS) through your insurer. Summaries of the coverage amounts for each of these can be found here and here.

There are options to increase the amount of coverage for each benefit, including indexing the amounts to inflation.

Uninsured Automobile Insurance

Covers injuries caused by an unidentified (hit-and-run) or uninsured driver and damages to your vehicle if caused by an identified, but uninsured driver.

Uninsured Automobile Coverage under the Ontario Insurance Act is a requirement that pays for costs associated with repairing or replacing your car or treating injuries sustained in an accident with an unknown driver, unknown vehicle (such as a hit-and-run), or an uninsured driver or owner (who does not have the required liability insurance).

Property damage – vehicle and contents

The Ontario Automobile Insurance Policy states that your insurer will cover your car and its contents for up to $25,000 (with a $300 deductible) if the other driver is known but uninsured. However, you must be able to identify the owner or driver of the other car. You must have collision insurance or file a lawsuit against the other motorist in order to obtain more than that sum.

Bodily injury or bodily injury and property damage

The Ontario Automobile Insurance Policy states that your insurer will pay expenditures for bodily injury or death up to the minimum liability limit of $200,000 if the other motorist is uninsured or unidentified. You must have collision insurance or file a lawsuit against the other motorist in order to obtain more than that sum.

95% of the total sum payable is given to payments for bodily harm and fatalities. Payment for harm to the car or its contents will be given a 5% priority.

Up to 6%, or 449,000, of the more than 7.48 million motor vehicles on Ontario roads in 2002, according to the Ontario Ministry of Transportation, were uninsured. According to provincial collision data from 2002 to 2006, there were about 2,100 incidents involving uninsured automobiles annually. 3,717 persons were hurt in the crashes over the course of the five years, and 108 people lost their lives.

9.79 million automobiles are now registered in Ontario, with roughly 8 million vehicle owners.

For more coverage in this area, look into the optional Family Protection Endorsement, OPCF 44R.

Optional car insurance coverage

Optional insurance coverage options include:

  • Comprehensive
  • Collision
  • Specified perils
  • All perils
  • Optional Ontario policy change forms (OPCF)

When going through the following sections, ask yourself the following questions:

  • How often/how far do you drive?
  • Where do you drive?
  • Am I a defensive driver?
  • What is the replacement value of your vehicle?
  • Can I afford the unexpected expenses if the worst was to happen?

Loss or damage

The extra coverages for your own car that fall under the area of loss or damage include comprehensive, collision, specific perils, and all perils.

Each of these coverages normally has a deductible, which typically ranges from $500 to $2,000.

What is comprehensive coverage?

Covers non-collision damages to your own vehicle that are outside your control

An optional feature that covers costs for your vehicle’s repair or replacement when it sustains damage from non-driving threats like:

  • Fire
  • Theft
  • Vandalism
  • Glass breakage
  • Falling objects
  • Weather (floods, lighting, hail)
  • Hitting an animal

If the car is leased, it can be necessary. Some insurance plans might not cover certain risks. For instance, drivers in locations where wildfires occur frequently may have that covered by comprehensive coverage.

It covers the risks mentioned under “Specified Perils,” as well as vandalism, falling or flying items, and missiles.

The assessed “Actual Cash Worth” (ACV) of your automobile at the time of the accident will serve as your coverage limit if your car is declared to be a total loss (also known as a write-off) because it was stolen or because the cost of repairs would exceed its value.

It does not include:

  • Damage caused by collisions with another vehicle: collision coverage
  • Others’ medical expenses: liability (if you’re at fault)
  • Your medical expenses: accident benefits
  • Contents of car that are unattached: DC-PD (if you’re not at fault)

Comprehensive claims are exempt from a fault determination, thus they normally don’t raise your rate. However, your insurer may raise your rates or drop comprehensive coverage from your policy if you file too many comprehensive claims in a short period of time.

What is collision coverage (upset coverage)?

Covers damage to your own vehicle when it collides with a vehicle and you’re at-fault or with another object (including hit-and-run vehicle).

An optional feature that pays for the cost of repairing or replacing your automobile in the event that you are found to be at fault in a collision with another car, a single-car accident with a wall, tree, fence, RV or trailer, or a single-car rollover.

Additionally, it offers protection in the event that an unknown motorist strikes your car (hit-and-run). It would also apply if your claims were greater than the third-party responsibility cap set by the other motorist.

The maximum sum (or coverage limit), which is the assessed cash worth of your automobile at the time of the accident, will be paid out if your car is declared to be a total loss (also known as a write-off) because it was stolen or because the cost of repairing it would be more than its value.

When you are not at fault for an accident, Direct Compensation – Property Damage, which is a legal requirement, will pay the cost of your car’s repairs and replacement.

What is specified perils coverage?

Covers some, but not all, of the perils that make up comprehensive coverage, making it a cheaper alternative.

An optional component that covers expenses for repair or replacement of your vehicle when it is damaged by specific non-driving risks including:

  • Fire
  • Theft or attempted theft
  • Falling objects
  • Weather (wind, floods, lighting, hail)
  • Earthquake
  • Explosion
  • Riots
  • Hitting an animal
  • Damage during transport

It does not include:

  • Vandalism
  • Glass breakage

What is all perils coverage?

Covers the combination of comprehensive and collision coverage, plus theft by household member or employee.

An optional component that covers expenses for repair or replacement of your vehicle when it is damaged by:

  • collision with another vehicle or object (collision coverage),
  • non-collision risks (comprehensive coverage),
  • or theft by member of your household or by an employee (such as at repair shop)

Both specific and all dangers Claims are not given a fault determination, therefore they normally don’t raise your rate. However, your insurer may raise your rates or drop the optional coverage from your policy if you file too many claims in a short period of time.

Optional Ontario policy change forms (OPCF) or endorsements

The following are optional additional provisions that provide increased protection in specific situations:

What is OPCF 5 – Rented or Leased Vehicles?

Extends your insurance coverage to a vehicle you drive that is owned by a leasing company.

What is OPCF 20 – Coverage for Transportation Replacement?

Covers the expense of taxi or rented car while your automobile is out of commission.

An optional clause that pays for the cost of taxi or rental car while you wait for your automobile to be fixed or replaced if it was damaged or lost due to an insured risk.
Usually, there is cap on the amount of money or the number of days of coverage. 
It is restricted to $1500 per incident under my insurance.

What is OPCF 27 – Liability for Damage to Non-Owned Automobile(s)?

Provides coverage for rental automobiles as well as damage to a vehicle you are using that is not your own.

An optional clause that, up to a certain limit, will pay for repairs if you damage a loaned car belonging to a friend, relative, or rental firm. My insurance coverage has a $60,000 cap (Canadian). When renting a car, you do not need to purchase insurance from the rental business if you have this endorsement on your policy.

This clause might not be worthwhile if you don’t frequently drive other people’s cars, don’t hire cars out very often, or have a credit card with car rental insurance.

What is OPCF 39 – Accident Forgiveness?

Stops your rate from rising after your first accident in which you are at fault, but it does not protect you if you decide to change your insurance company.

What is OPCF 43 – Waiver of Depreciation?

Prevents a new car’s assessed replacement value from declining due to depreciation for a set amount of time.

An optional clause that, in the event your automobile is declared a total loss or is stolen, mandates your insurer to pay you the original value or price you paid for it rather than the depreciated worth at the time of the incident.

It covers new automobiles for a predetermined period of time (between 2 and 5 years) or for a predetermined distance (like 5,000 km), and it pays out the lesser of:

  • The purchase price you paid
  • Manufacturer’s suggested list price on date of purchase
  • Current replacement cost for same make and model with similar equipment

This endorsement keeps you from going underwater since new automobiles decay (lose value) faster than older ones and the depreciated value may be considerably less than your existing loan.

What is OPCF 44R: Family Protection Coverage?

When the other at-fault motorist doesn’t have insurance, has insufficient insurance, or cannot be recognized, your insurance extends to cover them (hit-and-run).

An optional clause that pays for medical and recovery costs if you or a family member is hurt in an accident, even though you were not at fault, and the other at-fault driver does not have enough insurance to cover your injury claim because they are either uninsured, have less insurance than you do, or cannot be identified, as might happen in a hit-and-run.

When you are at fault, it offers protection up to the amount of your Third Party Liability policy, which is often $1 million to $2 million.

For instance, if an accident results in $600,000 in damages for you and your family, but the at-fault motorist only has the required $200,000 in Third Party Liability coverage, you would only be able to recover $200,000 from that driver’s insurance provider.

However, if you have $1,000,000 in Third Party Liability coverage plus the optional Family Protection Endorsement, you may be able to sue your own insurance provider for the remaining $400,000 owed.

What is Added Coverage to Offset Tort Deductibles (OPCF 48)?

Reduces the deductible for damages for pain and suffering granted by a court by $5,000 for Family Law Act claims and by $10,000 for claims that are not covered by the Family Law Act.

What insurance applies if the other driver is unidentified (hit-and-run) or uninsured?

Depending on whether or not the other driver is insured and/or identifiable, the following coverage applies to you and your car when they are at fault. Notably, not all of them are equally probable as the driver is often covered by insurance and identifiable.

Your vehicle Your injury
Identified driver Unidentified driver Identified driver Unidentified driver
Insured driver Direct Compensation – Property Damage Collision Third Third Party Liability, Accident Benefits Uninsured Automobile Insurance, Accident Benefits
Uninsured driver Uninsured Automobile Insurance, Collision Collision Uninsured Automobile Insurance, Accident Benefits, Collision Uninsured Automobile Insurance, Accident Benefits

What coverage applies if I am at fault or not at fault?

Your vehicle Your injuries Your property
You’re not at fault DC-PD, Other driver’s Third Party Liability, Accident Benefits, Other driver’s Third Party Liability, 44R (optional) DC-PD, Other driver’s Third Party Liability
You’re at fault Collision? Collision (optional) Non-collision? Comprehensive (optional) Accident Benefits Collision

What if I drive without insurance?

Driving without auto insurance carries penalties ranging from $5,000 to $50,000 in fines, license suspension, and/or vehicle impoundment. If found guilty, you may:

  • be labelled a “high-risk” driver by your insurance company, charging much higher premiums or refusing to sell you insurance,
  • not receive income replacement if you are injured,
  • not be allowed to sue the at-fault driver, and
  • be held personally liable for the other person’s medical costs

What is not covered by car insurance?

Your vehicle’s normal wear and tear while being driven is not covered by car insurance. This implies that unless they were caused by a risk that is covered by your insurance policy, rust, corrosion, tire damage, mechanical failure, or other breakdown are not covered.

Your claim may be rejected by your insurance provider if the driver was:

  • under the influence of drugs or alcohol
  • previously convicted of a auto-related Criminal Code offense:
    • Causing death or injury by criminal negligence,
    • Dangerous operation of a vehicle,
    • Failure to stop at the scene of an accident,
    • Driving a vehicle when impaired or with more than 80 mg/100 ml of alcohol in the blood
    • Refusal to provide the police with a breath sample,
    • Causing injury when driving a vehicle while impaired or with over 80 mg/100ml of alcohol in the blood, or
    • Driving the vehicle while disqualified from doing so.

How to save money on car insurance in Ontario?

Review and update the details of your policy

Because you now work from home, do you drive less? Since you relocated, do you drive less in the city? Have you been hitched? Have you acquired winter tires or joined the CAA?

Contact your insurance provider and inform them of the changes so that your policy reflects them. This might result in a reduction in your rate.

Removing collision coverage

By doing so, you’ll be responsible for paying for the replacement or repair of your car.

Collision coverage is probably worthwhile for newer automobiles. When comparing accident premiums for older cars, subtract the deductible from the car’s replacement value.

The most your insurance provider will pay out under collision coverage if your automobile is declared totaled and needs to be replaced is its replacement value.

Look up the year, make, model, and mileage of used cars listed for sale on Kijiji and AutoTrader to obtain a ballpark figure.

It makes more sense to maintain collision coverage the cheaper the collision insurance rate is and the greater the car’s worth.

For instance, if your automobile’s estimated value is $3500, your collision insurance premium is $300 per year, and your deductible is $500, you would be paying 10% of the benefit ($3500 – $500 = $3000 $300 = 10%) of your car each year in exchange for coverage. It might not be worthwhile to have collision coverage if you don’t anticipate wrecking your automobile more frequently than once every ten years.

Or to put it another way, would you have the resources to replace your automobile and be able to deal with the loss emotionally if it were wrecked in a crash for which you were at fault or by a hit-and-run motorist while you were away?

If you get into an accident that wasn’t your fault, you’ll still be insured even without collision coverage. Your injuries are covered by the necessary accident benefits section of your required third party liability insurance, along with your legal liability, the damage to the other person’s automobile or property (up to its maximum), and your legal liability.

Ask about discounts

Find out what discounts are available and applicable to you, such as:

  • Group discounts such as a member of CAA (up to 20%), professional association, union, or university)
  • Bundling home and auto insurance (5 to 15%)
  • Changing into winter tires (5%)
  • Paying annually rather than monthly (up to 7%)
  • Loyalty discount (5 to 20%) for long-term clients
  • Installing a driving monitoring app (up to 30%) (eg. CAA MyPace, Intact myDrive, Desjardins Ajusto)

Removing comprehensive coverage

Doing so means you’ll be on the hook to repair or replace your vehicle.

  • Do you drive or park your vehicle in locations that face non-driving risks?
  • Could you afford to fix or replace your car if something happened to it?
  • How often is your vehicle exposed to non-collision risks, such as fire and theft?

As mentioned for collision coverage above, it can be more cost-effective to drop your comprehensive coverage if you drive an older vehicle with a low replacement value that isn’t worth fixing.

However, comprehensive coverage is less expensive than collision coverage, reasonably cheap, and it includes coverage in the event that your car is stolen, so it may be worthwhile to keep until your car’s value is even lower.

Even if you don’t have comprehensive insurance, you’ll be safeguarded in the event of an accident that was your fault. Your injuries are covered by the necessary accident benefits section of your required third party liability insurance, along with your legal liability, the damage to the other person’s automobile or property (up to its maximum), and your legal liability.

Increasing the deductible

Increasing the deductible lowers your insurance premium since you are responsible for a higher initial share of the claim costs. Since it isn’t worthwhile filing a claim if the cost of repair is less than the deductible amount, this also means that the smaller, more frequent losses – vandalism and shattered windshields in the case of comprehensive insurance – will no longer be covered by insurance.

For instance, if you have full coverage with no deductible, you choose to increase it to $500. A falling tree ends up shattering the glass of your automobile. The deductible, which is the first $500 of the new windshield’s cost, is your responsibility. However, since a new windshield costs $300, you must pay for it out of pocket rather than via insurance.

In my situation, raising my comprehensive coverage’s $500 deductible to $1,000 would save me $13 year ($1.08 monthly) on a $59 monthly insurance, which I thought wasn’t worth it.

Reducing third party liability coverage

In Ontario, the majority of drivers carry third-party liability coverage for at least $1 million. The difference in premiums between $200,000 and $1 million in coverage is often tiny, resulting in negligible savings, and you’ll have to personally pay for all successful claims against you that exceed that level. You do have the option of lowering it to the minimum $200,000 coverage limit.

Who regulates car insurance in Ontario?

The Financial Services Regulatory Authority (FSRA) of Ontario is an arm-length government agency under the Ministry of Finance that acts as the province’s financial regulator, including car insurance, loan companies, mortgage brokers and pension plans.

How to file an auto insurance complaint?

If you believe your insurance company, agent or adjuster has violated the Ontario Insurance Act or regulations, you can file a complaint through FSRA.

If your complaint has not been resolved, you can contact the General Insurance OmbudService, an independent non-profit that helps Canadian consumers resolve disputes or concerns with their auto insurer for free. Here are some example case studies.

Over to you

We’re interested to know – what do you pay for your car insurance? What optional coverage do you have and why? Let us know by leaving a comment below!

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By Kariuki Maina Kariuki Maina
In a world full of worriers, be the warrior.
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