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VEHICLES
· Ontario Licence
Plates
· Vehicle
Licenses
· Yearly
stickers Renewal
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Transfers
· Plate
Replacement
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Replacement
· Stickers
Replacement
· Transfer of
Vehicles
· Buying or Selling a
vehicle
· Registration
of Newvehicles
· Registration
of Used Vehicles Formerly in other Provinces or Countries
· Importing a
Vehicle
· Temporary Permits (10
day Permits)
· Personalized Plates
· Safety Standard Certificate
· Ontario Sales Tax (PST)
· Tax Exemptions
· Refunds
· MTO Fees and Fines
· Vehicles Q & A
DRIVERS
· Renewing
a valid Driver's Licence
· Renewal
of a Driver's Licence AFTER it is expired
· Replacing
a lost Driver Licence
· Replacing
a Foreign D.L.
· Replacing
your Photo
· Graduated Licensing (
New Drivers)
· Demerit Points
General
Information
· Importing Vehicles
to Canada
· Vehicle Insurance in
Ontario
· Licensing Offices
(GTA)
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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
- Third-party
liability of at least $200,000, in case the driver of your vehicle injures or
kills someone or damages someone's property.
The following types of Collision insurance to cover damage to your
own vehicle is a good idea but not required by law.
- Uninsured automobile coverage, in case the
owner of the vehicle that injured you or caused damage to your
vehicle doesn't have any insurance;
- Statutory accident benefits, so you don't need to sue for a basic level of
income replacement and medical benefits – particularly useful
if you are involved in a single vehicle accident;
- Direct compensation for property damage, which allows you to claim from your insurance
company for damage to your vehicle caused by someone else. Direct
compensation for property damage means that, to the extent that
you are not at fault in an accident with another vehicle, your own
insurer will pay for damage to your vehicle.
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.
- The Act specifies basic accident benefits
for almost anyone injured in a motor vehicle accident, and higher
coverage for those catastrophically injured.
- Consumers may buy additional
income-replacement coverage that reflects most closely their income
level.
- Innocent victims of vehicle accidents may
sue an "at-fault" party for pain and suffering, and loss of
income and future earnings when accident benefits coverage is
insufficient. A victim who suffers a catastrophic injury may also sue
for health-care costs that exceed the benefits provided by
"no-fault" coverage. If you do not have insurance and you are injured while
driving or occupying your own uninsured vehicle, you cannot sue, regardless
of who was responsible for the accident.
- The Act gives insurers powers to control
insurance costs. For example, insurers are required to inspect
certain vehicles they are insuring for the first time within 10 days
of the policy taking effect and to report information about insurance
coverage and claims to a central data bank.
- The Act contains measures to cut insurance
costs by prosecuting uninsured motorists, and by reducing insurance
fraud committed by claimants, auto-body repair shops, health service
providers and others.
- The Act requires a government Insurance
Ombudsman to investigate a consumer's complaints about business
practices of an insurer. Each company has established a complaint
handling protocol. For details, contact your agent or broker.
- Ontario automobile insurance
coverage only applies to claimants of automobile accidents that occur
in Canada and the United States of America.
- The fines for driving without insurance
range from $5,000 to $50,000
- If you are found driving without valid automobile
insurance, you can have your driver's licence suspended and your
vehicle impounded.
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:
·
You may not be entitled to receive income
replacement and/or non-earner benefits; and
·
You may not be allowed to sue the at-fault driver
for compensation as a result of injuries received in the accident.
- More
importantly, if you are found to be at fault for an accident causing
injury or death to another person, you may be held personally
responsible for his/her medical costs and other losses.
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.
- Indexing the income replacement and
non-earner (including student) benefits and all benefit limits to the
cost of living. (If the cost of living goes up from the time of the
accident, the benefits and limits do likewise.)
- Increase $400 weekly income replacement
benefits limit to $600, $800, or $1000.
- Additional $1,000,000 limit for medical,
rehabilitation, and attendant-care expenses beyond the standard
coverage.
- Increase benefits for unpaid caregivers
(caring for children, elderly parents, etc.) for expenses up to
$325/week, $75/week for each additional dependant, and provide a
dependant-care benefit of $75/week for one dependant plus $25/week
for each additional dependant to a maximum of $150/week. A
dependant-care benefit covers the expenses incurred by employed
persons to replace the care which they have been providing to their
dependants.
- Increase death benefit to $50,000 to the
surviving spouse for death of each named "insured" and/or
spouse; $20,000 to each surviving dependant of each named insured and
/or spouse plus increasing the funeral benefit limit to $8,000.
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).
- Recovery of lost income and loss of earning
ability is limited to 80% of net income lost, beginning seven days
after the accident until trial. After the trial date, recovery will
be based on 100% of gross income loss. Accident benefits and benefits
from other sources such as workplace disability plans will be
subtracted from court awards.
- Recovery for health-care expenses is
available to people who suffer catastrophic injuries. Accident
benefits and collateral benefits from other sources will be
subtracted from court awards.
- Seriously injured accident victims whose
injuries meet a legislated "verbal threshold" test may sue
for pain and suffering (non-economic loss). A $15,000 deductible
applies.
- Where the injuries of accident victims meet
the "verbal threshold", family members may sue for loss of
guidance, care and companionship under the Family Law Act. A $7,500
deductible applies.
- Rules requiring early disclosure of
information by claimant and insurers are intended to minimize delay
and cost in resolving lawsuits.
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
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