Ontario is Canada’s third-largest populated region and has historical and nature-filled places to visit. How about driving a car to the famous Niagara falls?. Sounds exciting? Whether we are a citizen of Ontario or a tourist who has a car to drive while being there, then we should have car insurance coverage.
It’s a law in Ontario that all vehicles must have auto insurance. We are in deep trouble if found driving without valid insurance. Fines may be imposed from $5000 to $50000 and, or our diving license can be suspended.
If we met with an accident, we might not be entitled to any health coverage. If we are convicted for an accident, then we will be held responsible for all expenses and other losses.
So why take a risk in a city of scenic beauties? Just protect yourself with an auto Insurance.
The Minimum Requirement for Auto Insurance:
It is better to have knowledge of minimum requirements, for instance, before purchasing. There are two types of automobile insurance in Ontario – Standard Policy and Optional Coverage policy.
1. Standard Coverage Policy:
To drive legally, one should have at least a Standard Auto Insurance coverage, and that includes :
· Third-Party Liability Coverage:
We should have at least $200,000 in this coverage or more. As the name suggests, it can protect us if the party or someone else is killed or injured or any damages to the vehicle. It will be paid on behalf of us up to the limit of our coverage.
· Accident Benefit Coverage:
This policy covers if we are injured regardless of who caused the accident.
· Direct Compensation – Property Damage (DC-PD) Coverage:
This policy covers if our vehicle is damaged or its parts. It also covers loss of use of it even if the damage is caused by someone else.
· Uninsured Auto Coverage:
If injured or killed by an uninsured vehicle, then he/she and family members will be covered in this policy.
2. Optional Coverage Policy:
It can increase coverage limits beyond the standard limit of $200,000. If we are not happy with the limits in Standard Insurance for caregiver benefits, death and funeral benefits, and medical care, then optional coverage policy suits us the best.
How Can We Purchase Insurance?
There are several ways to purchase auto insurance; we may purchase auto insurance from a licensed company or broker.
1. Car Insurance Brokers:
Car insurance in Ontario is usually purchased through brokers as they have extensive knowledge about deals and prices. They can offer wider options to buyers than any other company.
2. Car Insurance Companies:
They have their own insurance policies that they sell directly to the customers.
What Precautions Should Be Taken Before Approaching Brokers or Insurance Companies?
Before approaching, it’s good to have a piece of basic information like vehicle details, current policy details, and owner’s driving record details of the vehicle. It is always better to go for a new policy after our existing policy expires than canceling as we may have to pay the penalty.
In addition, below are the factors to consider before selecting:
1. Licensed Entities:
Insurance should be purchased only by a licensed broker or company, so verify if they are licensed to do business.
2. Rates:
Based on our budget and requirement, select the policies accordingly. As many companies and brokers offer different rates and benefits. Compare the prices and benefits each offers and choose. Advised to do a bit of research by running car insurance online calculators.
3. Coverage and Claims:
Go through the policies about the basic coverage and claim they provide in case of accidents and other disasters. Again, compare to get the best offers.
4. Services:
Check for the services each insurer is providing. It’s always best to purchase the cheapest policy, along with the service and comfort provided. They should be customer friendly and should be readily available to answer our queries anytime.
5. Cost Factors:
There are a few factors where our car insurance cost may vary, and they are:
· Driving Record:
How many years of driving experience in Canada alone, other countries are not counted. Also, If there is any record of careless driving and speeding charged.
· Age:
Divers above 25 years of age get insurance at a low cost.
· Location:
Cost is higher in urban areas due to the increase in accidents and theft.
· Vehicle:
If the price of the vehicle is more, then there are more chances of theft. Hence such vehicles will be insured at a high cost.
Be Insured
The journey is pleasant and memorable, with a bit of protection. Car insurance takes away a bigger crunch of our budget, but it is beneficial to us as we are better equipped to overcome financial shocks of accidents and damages.
Since there are 100’s of car insurance brokers and companies, it is wise to research on their reviews, customer service, deals, and prices before deciding to buy. Meticulously reading and understanding terms and coverage is a key to be aware of what our insurance actually provides. Drive insured!
This is an article provided by our partners network. It might not necessarily reflect the views or opinions of our editorial team and management.
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Founder Dinis Guarda
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