FAQ’S

Your Canadian Automobile policy is valid in the United States. Note: However, your policy is not valid in Mexico.

All Canadians must have “Third Party Liability” Coverage which insures their vehicle against an accident that might involve injury or death or damage to their property. “Accident benefits is also included in this coverage which will provide you with benefits if you are injured in an accident.

Graduated licensing is a multi-stage program to allow new drivers on-road driving experience under conditions of reduced risk. Graduated licensing generally restricts highway, night-time and unsupervised driving during the early stages. Throughout the later stages, restrictions are removed once the driver completes further testing.

Graduated licensing laws vary from province to province. Click here to view Ontario laws.

Source: InsuranceHotline.com

Collision coverage covers accidental loss or the cost of repairing your vehicle if involved in a collision with another object or tips over. Collision coverage is optional to purchase but usually required if your vehicle is financed or leased.

There is usually a deductible amount indicated and this amount is either paid by you, toward the cost of repairs or is deducted from the loss settlement. Higher deductible lowers your insurance premium.

Source: InsuranceHotline.com

Comprehensive coverage covers accidental loss or the cost of repairing your vehicle if damaged by fire; theft; attempted theft; vandalism; lightning; windstorm; hail or rising water; earthquake; explosion; riot or civil disturbance; falling or flying objects and missiles.

Comprehensive coverage is optional to purchase but usually required if your vehicle is financed or leased. There is usually a deductible amount indicated and this amount is either paid by you, toward the cost of repairs or is deducted from the loss settlement. Higher deductible lowers your insurance premium.

Source: InsuranceHotline.com

Insurance companies offer a better driving record to drivers who have completed an accredited drivers training course within the last 3 years. Your insurance company may ask for a copy of your drivers training certificate.

Source: InsuranceHotline.com

If involved in a car accident, your insurance company is required to assign the percentage of fault for each of the drivers involved in the accident. Insurance companies determine responsibility for an automobile accident according to the “Fault Determination Rules” located in the Insurance Act. These rules allow insurance companies to fairly assign fault in accidents resulting in fair compensation for everyone involved.

Source: InsuranceHotline.com

Pleasure use includes driving to and from work. Business use means that you use your vehicle either full time or part time for your work; e.g., sales calls, etc.

Source: InsuranceHotline.com

Provides coverage if you are legally responsible for an automobile accident that causes bodily injury or death to another person or damages to property.

Source: InsuranceHotline.com

A lapse of insurance coverage will impact your driving record if:

• The lapse was due to a policy cancelled for non-payment of premium;
• The driver was convicted of driving without insurance during the lapse in coverage
• The lapse was due to a drivers license suspension
• The lapse was due to a policy cancelled for misrepresentation or non-disclosure.

Source: InsuranceHotline.com

As part of the Ontario policy, you agree to inform us of any incident involving the automobile that must be reported to the police under the Highway Traffic Act or for which you intend to make a claim under the policy. The Highway Traffic Act of Ontario indicates that you must report any accident that involves an injury, and must report any accident in which the total damages to all vehicles and property is greater than $1000. You must notify us within 7 days after the accident, or if unable, as soon as possible after that.

Source: CAA Website (www.caasco.com)

The deductible is the amount you agree to pay toward the cost of any claim you make and the deductible, if any, is shown on the Certificate of Automobile Insurance. The deductible applies each time a claim is made and separately to each automobile that is insured. Some sections of coverage do not have a deductible. For example, if you are involved in a motor vehicle accident in Ontario involving another vehicle and the other vehicle is “at-fault” for the accident, and if the other vehicle has valid insurance you will typically not be required to pay a deductible.

Source: CAA Website (www.caasco.com)

High-risk drivers are those drivers who have had a number of convictions or at-fault accidents, had policies cancelled because they haven’t paid their premiums, or have other risk-related characteristics.

The Facility Association, an insurance pool that all auto insurance companies belong to, is an insurer of last resort, which makes auto insurance available to high-risk drivers who are unable to find automobile insurance in the regular market. As well, there are a number of “non-standard” insurers who specialize in insuring high-risk drivers.

Source: Financial Services Commission of Ontario Website

As an insurance shopper, you should check with your insurance company, agent, or broker about possible discounts that may be applicable to you, such as:

Driver Training Discount: Most companies offer a discount or a reduced premium for new drivers who have completed a recognized driver-training program.

Group Discount or Group Rates: If you belong to an eligible group, check to see if it offers group rates. An eligible group may include employees of the same employer, members of a union or professional or occupational association, or certain non-profit associations.

Multi-Policy Discount: Some insurance companies offer a discount if you purchase your vehicle and home insurance from the same company. This discount can range from 3 to 15 per cent.

Multi-Vehicle Discount: You may be able to get a discount if you insure more than one vehicle with the same insurance company. The multi-vehicle discount can range from 5 to 15 per cent.

Renewal Discount: Your company may offer you a renewal discount if you have been with the company for a certain number of years without an at-fault accident. The discount can range from 5 to 20 per cent.

Retiree Discount: If you are retired and meet certain conditions, you may be able to get a retiree discount on your premium. The retiree discount can range from 5 to 15 per cent off your premium for Accident Benefits coverage.

Winter Tires Discount: Some insurance companies offer a discount if you install winter tires on your vehicle during the winter months.

Other Discounts: Your premium may be reduced further if your yearly mileage is low or if you have an alarm in your vehicle. Also note, drivers who progress through the graduated licensing system should receive a rate reduction of 10 per cent on all coverages, provided that the driver has had no chargeable convictions or at-fault accidents when entering into Level Two (Class G2 licence). This reduction is applicable for 1 year. Similarly, a driver should receive a 10 per cent rate reduction on all coverages when the driver becomes fully licensed (Class G license), provided that the driver has had no chargeable convictions or at-fault accidents during Level Two. This reduction is also applicable for one year.

Each company applies discounts differently. Check with your broker, agent or insurance company to find out what discounts are available to you.

Source: Financial Services Commission of Ontario Website

If you own a vehicle in Ontario, you are required to, at the very least, purchase the following automobile insurance coverage:

Third-Party Liability Coverage:

This section of your automobile insuinsurance policy protects you if someone else is killed or injured, or their property is damaged. It will pay for claims as a result of lawsuits against you up to the limit of your coverage, and will pay the costs of settling the claims. By law you must carry a minimum of $200,000 in Third-Party Liability coverage.

Statutory Accident Benefits Coverage:

This section of your automobile insuinsurance policy provides you with benefits if you are injured in an automobile accident, regardless of who caused the accident including supplementary medical, rehabilitation, attendant care, caregiver, non-earner and income replacement benefits.

Direct Compensation – Property Damage (DC-PD) Coverage:

This section of your automobile insuinsurance policy covers damage to your vehicle or its contents, and for loss of use of your vehicle or its contents, to the extent that another person was at fault for the accident. It is called direct compensation because even though someone else causes the damage, you collect directly from your own insurer, instead of the person who caused the damage.

Note: Coverage under the DC-PD section of your automobile insuinsurance policy only applies if the following conditions are met:

•  the accident took place in Ontario;
• there was at least one other vehicle involved in the accident; and
• at least one of the other vehicles is also insured by an insurance company that is licensed in Ontario or has signed a special agreement with FSCO to provide this coverage.

If these conditions are not met, then you can make a claim on your optional Collision coverage (if you have it), whether or not you are at fault. If you don’t have Collisioncoverage, you may be able to pursue recovery from the at-fault driver to the extent you were not-at-fault for the accident.

Uninsured Automobile Coverage:

Protects you and your family if you are injured or killed by a hit-and-run driver or by an uninsured motorist. It also covers damage to your vehicle caused by an identified uninsured driver.

Source: Financial Services Commission of Ontario Website

You may qualify for a retiree discount if you meet the following criteria:

• You do not earn or receive income from any office or employment.
• You are not engaged in any professional occupation.
• You do not operate a business and have not been employed for 26 weeks or more in the last 52 weeks.
• You are 65 or older or you receive a pension under the Canada Pension Plan (CPP) or the Quebec Pension Plan or receive a pension registered under the Income Tax of Canada.

Source: InsuranceHotline.com