While driving a vehicle in Ontario you must have the vehicle covered with proper insurance. A document proof of insurance issued by the Insurance Company must be carried in the vehicle at all times, and must be shown on request to a police officer or to other drivers involved in an accident with you.
Automobile Insurance in Ontario is regulated by the Insurance Rate Stability Act of 1996. You will find highlights of the Act by clicking on Features of the Auto Insurance Rate Stability Act . General information will be found by clicking on Coverage you must have and on Basic Accident Benefits or any of the following options.
Automobile insurance in Ontario, like everywhere else in Canada, is compulsory. You must not drive without it. While the insurance law calls for standard policy wordings and oversees the range of options, there are many insurers competing on price and service in the Ontario market. The Ontario auto insurance system aims for fairness, affordability and efficiency.
Shopping for insurance: Brokers and agents will tell you which insurers they represent, identify the companies they get quotes from, and show you those prices on request.
Retirees: Insurers must offer a premium discount to retirees aged 65 or older, and to younger retirees, too, if they are receiving a Canada or Quebec Pension or a pension registered under the Income Tax Act. For complete details, see your agent or broker; you will be required to sign a Declaration for Retiree Discount.
Coverage you must have
The following types of Collision insurance to cover damage to your own vehicle is a good idea but not required by law.
When driving your own or someone else's vehicle, you must carry the pink liability insurance card for that particular vehicle. You must show this card when a police officer asks for it. If you do not, you can be fined up to $200.
Deductibles on your vehicle coverage
A "deductible" is the part of a claim for damages to your vehicle you must pay. Higher deductibles usually result in lower premiums but higher financial risk.
Under the direct compensation – property damage provisions of your policy, if you are not at fault in an accident in Ontario involving another Ontario-insured vehicle, there is no deductible (unless you have chosen to lower your premium by selecting one). If you have selected a deductible, it applies only to the extent to which you were not at fault for the accident (Note: Incorrect information appears in the original version of the printed pamphlet).
If you have bought optional coverage for collision or upset, or all perils, and if you are fully at fault for the damage to your vehicle, a standard $300 deductible will apply (unless you have selected another amount). However, if you have no direct compensation deductible, and if you are only partially at fault, your deductible will be reduced accordingly. If you are partially at fault, and if you have both a direct compensation deductible and a deductible for collision or upset (or all perils), your agent or broker will explain how these can be apportioned.
If you are claiming for losses arising from perils unrelated to a collision (such as hail dents, for example), the full deductible will apply.
Features of Auto Insurance Rate Stability Act, 1996
From November 1, 1996, The Act allows accident victims to be compensated for their losses through the courts in a "tort" action and/or from their own insurer through "no-fault" coverage.
If you are convicted of driving without valid automobile insurance, your insurance company may consider you a "high-risk" driver and charge you higher premiums or refuse to sell you insurance altogether. If you are injured in an accident while driving or occupying an uninsured vehicle:
Basic Accident Benefits
The Act, and related regulations, provides for certain accident benefits, regardless of who is at fault for the accident, which results in bodily injury or death. These accident benefits follow the insured individual rather than the insured vehicle. Therefore, if you are insured and you are involved in an accident with any vehicle, your insurer will provide your basic accident benefits. Maximum amounts you will receive will include any benefits you receive from other plans (e.g.. workers compensation, employer disability plans).
Short-term disability: up to $400/week (after 7-day wait) if an injury resulting from an automobile accident prevents you from working at your usual occupation. This benefit is available for up to two years and is based on 80% of net employment income; self-employed may also receive 80% of other business losses.
Long-term disability: up to $400/week based on 80% of net earnings if disability prevents pursuit of any occupation for which you are reasonably suited after two years; minimum $185/week.
Medical and rehabilitation expenses: up to $1,000,000 for catastrophic injuries; otherwise, up to $100,000 over a period of ten years (or 25 years minus age, whichever is greater) after the accident. These expenses are in addition to those covered by the Ontario Health Insurance Plan (OHIP), to which auto insurers will contribute $80 million in 1996-97.
Attendant care: up to $6,000/month for catastrophic injuries ($1,000,000 maximum); otherwise up to $3,000/month for up to 2 years after the accident ($72,000 maximum).
Death and funeral benefits: $25,000 death benefit to a surviving spouse and $10,000 to each surviving dependent for each named "insured" and/or spouse; $10,000 for each dependent killed; $6,000 funeral benefit.
Benefits for non-earners: If you are not employed and cannot carry on a normal life as a result of the accident you can receive non-earner benefits of $185/week following a six month waiting period.
STUDENTS who are unable to continue in school may be reimbursed for actual expenses before the accident for the current school term up to $15,000 for lost tuition, books, room and board. Students over 16 may also qualify for the $185 weekly non-earner benefit (paid after six months). After two years, students over 16 may receive $320/week until they reach age 65.
CAREGIVERS who are unpaid (stay-at-home parents, for example), and who are basically unable to engage in care-giving, may be reimbursed for expenses of up to $250/week, plus $50/week for each additional dependent.
SENIORS (OVER THE AGE OF 65) who are working at the time of the accident may be eligible for income replacement benefits. (See also the preceding sections concerning short-term and long-term disability.) Seniors who are not working at the time of the accident may be eligible for non-earner benefits. In the first year, seniors are eligible for 100% of the benefit for which they qualify. In the second year the payments are reduced to 80% of the benefit; in the third year payments are reduced to 60%; and in the fourth year payments are reduced to 30%. After four years, payment of income replacement and non-earner benefits end.
For those under the age of 65, weekly income replacement benefits and non-earner benefits are payable, but only up to age 65. At 65, those benefits will be converted to a kind of "pension" based on 2% of the benefit received, multiplied by the number of years the person claiming has received the benefit before reaching age 65.
Optional Increased Accident Benefits
Policyholders may purchase a variety of optional accident benefits which build on the basic accident benefits levels. These optional increased accident benefits follow the insured individual rather than the insured vehicle.
The Right to Sue
In addition to the benefits described above for all automobile accident claimants, innocent (not-at-fault) accident victims may, within limits, sue to recover all types of economic losses and some non economic losses (listed below).
I need to know more...
This web page highlights some of the key features of the province's automobile insurance legislation and regulations. Keep in mind that each Insurance company has its own system for resolving consumer complaints and claims. For more information about auto insurance in Ontario, see your agent or broker, or call:
Insurance Bureau of Canada
(800) 387-2880
in Toronto area (416) 362-9528
www.ibc.ca
I have a dispute with my Insurance Company
To fill complaints about your Automobile Insurance or if you have a dispute with your Insurance Company contact:
Ontario Financial Services Commission
Toll free from outside Toronto 1- (800) 668-0128
In the Toronto area (416) 250-6750
www.fsco.gov.on.ca
We recommend the review of the following page at the Ontario Financial Services Commission, for extensive and comprehensive information about car insurance in Ontario, your rights, options and benefits.
http://www.fsco.gov.on.ca/english/insurance/auto/undautoins.asp#itsthelaw