There are options to increase that minimum amount, and it's highly recommended that you purchase a higher limit. Statutory accident benefit coverage provides protection if the driver or a passenger in the vehicle is injured. Coverage will cover medical expenses greater than those covered by the provincial health insurance plan (OHIP), rehabilitation services, care care, and caregiver expenses. There is also limited income replacement coverage, in case you can't work after an accident, and people who don't earn income are also considered in coverage.
The mandatory limits of statutory accident benefits may not be sufficient to cover people who suffer serious injuries. It's a good idea to talk to your insurance professional about whether you might need to buy additional coverage. Statutory accident benefits play an important role in ensuring that the driver, passengers and their dependants have sufficient resources to recover and move forward after an accident occurs. Third-party liability coverage will cover other people's claims for injuries or property damage that are the result of an accident caused by you.
In the event that you are at fault for an accident that causes property damage or injuries to others, this coverage will pay the cost of your defense in any lawsuit, as well as the cost of resolving those claims. While third-party liability coverage will respond to and pay for damage to other people's property in an accident caused by you, direct compensation: property damage covers damage to your vehicle or its contents and the loss of use of your vehicle, if the other driver is at fault for the accident. It's called direct compensation because the claim is resolved and paid by your own insurance company, not the other party's. Whether you're trying to save or just don't worry about damage to your car, you might want to lower your car insurance premium.
The table above should help you better understand the car insurance options available in Ontario; however, remember to talk to your broker before making a final decision about the protection you need. Compulsory auto insurance has undergone some changes since it was first enacted, but the principles have remained consistent: protecting the driver and occupants of the car, protecting any third party who is injured, and covering the cost of repairing any damage to other people's property caused by the accident. In this case, your friend's insurance will normally cover the car in the event of an accident, even if you were driving. Mitch is a leading digital insurance agency with a mission to make insurance adorable through exceptional experiences.
As you can see, mandatory auto insurance coverages in Ontario provide protection against many of the things that can happen to a car, its driver, and its passengers, but there are several essential coverages that are not mandatory but deserve to be explored. Keep reading to learn about mandatory and optional coverages, as well as the minimum car insurance required in Ontario. Maybe you recently received a fine that affected your car insurance rate, or your teen has reached the age of majority to receive their license and is ready to go out for a ride with the family vehicle. The Facility Association's mission is to manage the residual auto insurance markets, improve market stability and ensure the availability of auto insurance for those who qualify for it.
That said, there are other cases where car insurance coverages are mandatory and not regulated by the government. More than 100 private insurance companies offer auto insurance to customers and compete on price, coverage and service. Having to maintain certain insurance to drive a vehicle ensures that people injured in a car accident have financial support to help them recover and that there is money to pay for any property that was damaged in the accident. They'll automatically be included in any car insurance policy you buy, but the amount of coverage will vary depending on your unique situation.
If you are traveling as a passenger in someone else's vehicle, your accident benefits on your own auto insurance policy will be the first to pay the benefits. When looking at what auto insurance is mandatory in Ontario, it's clear that a standard auto insurance policy includes many different types of coverage and offers levels of protection for vehicle owners, drivers, and passengers. The decision to make auto insurance mandatory in Ontario was based on the common law concept of personal liability. .