Ontario car insurance eligibility and restrictions

Auto insurance is mandatory in Ontario, but that doesn’t mean all vehicles and drivers are eligible for standard market car insurance. Some drivers may have to be covered under a high-risk insurance company.

Here’s what you need to be eligible for standard market personal car insurance in Ontario.

Valid Driver’s Licence

  • Must have valid driver’s license
  • All people listed on the policy must also have a valid license
  • Must have a G, G2, G1 or equivalent

Residency

  • Must be a Canadian resident
  • Must reside in Ontario

Vehicle Type & Usage

  • Vehicle must be for personal usage only
  • Vehicle must be road safe
  • Vehicle modifications must be reported to insurer
  • Vehicle must not be used for illegal activities such as racing
  • Business vehicles require commercial auto insurance

Good Legal Standing

  • Serious prior convictions, past insurance losses, and claims can affect your eligibility
  • Previous fraud convictions will almost guarantee you won’t be eligible
  • Not disclosing information that can affect your policy can make your insurance null and void

Standard Auto Insurance Coverage in Ontario

Ontario auto insurance policies are standardized and comprised of four mandatory types of car insurance coverage. All four of these types of car insurance coverage are included in a basic car insurance policy. When comparing quotes, keep in mind that unless you’ve indicated additional coverage, all quotes provided are for standard auto insurance coverage. You always have the option to increase your coverage amounts and purchase additional car insurance coverage as well. When adding things to your policy, it is likely your quote will change to reflect this coverage.

Mandatory Auto Insurance Coverage in Ontario:

Third-Party Liability

Provides coverage in the event someone is injured or killed in an accident, or their property is damaged, resulting in a lawsuit. Liability insurance covers the costs of settling these claims up to your coverage amount.

Mandatory minimum coverage amount: $200,000 minimum, but higher amounts often recommended.

Statutory Accident Benefits

Provides coverage for a number of benefits in the event you are injured in an automobile accident, regardless of who is at fault. These benefits cover medical expenses such as physiotherapy and other expenses not covered by OHIP. All maximum payouts are subject to eligibility as outlined in your car insurance policy. You can purchase additional coverage for most of these Statutory Accident Benefits.

  • Income Replacement Benefits: Basic weekly income replacement of 70% of your gross income up to $400/wk.
  • Medical, Rehabilitation and Attendant Care Benefits: Up to $65,000 for serious injuries, and $1 million for catastrophic injuries.
  • Caregiver Benefits: Up to $250 per week for the first dependent, and $50 per week for each dependent after that.
  • Housekeeping and Home Maintenance Expenses: Maximum payout $100 per week.
  • Death and Funeral Benefits: Up to $25,000 is provided to your spouse, $10,000 for each dependent, and up to $6,000 in funeral costs in the event you are killed in an automobile accident.

Direct Compensation-Property Damage (DC-PD)

Covers damage to your vehicle or loss of use of your vehicle and its contents in the event another person is at fault. There are additional caveats to this type of coverage. The accident must have happened in Ontario and involved at least one other insured vehicle. If you are seeking additional coverage for your vehicle, you’ll want to purchase collision insurance.

No defined mandatory amount. This type of coverage is for your vehicle so long as it meets eligibility.

Uninsured Automobile

Provides coverage in the event you are injured or killed by an uninsured driver or as the result of a hit-and-run. Can also cover damage to your vehicle if caused by an identified uninsured driver. See Statutory Accident Benefits coverage above.

Optional Auto Insurance Coverage in Ontario:

In addition to increasing coverage amounts for third-party liability insurance and statutory accident benefits, there are also a number of different types of optional insurance coverages you can add to protect your vehicle, the most common being collision and comprehensive car insurance coverage.

  • Collision coverage/Upset Coverage– Covers losses to your vehicle if you’re involved in a collision with another object, including another vehicle, or an object in or on the ground.
  • Comprehensive Coverage– Covers listed perils identified under Specified Perils coverage, as well as damage caused by falling/flying objects, missiles, and vandalism.
  • Specified Perils Coverage– Covers losses from fire, lighting, windstorm, hail, rising water, theft, attempted theft, earthquakes, explosions, and other named perils as identified in your policy.
  • All Perils Coverage– Combines collision and comprehensive coverage and provides additional protections.

Note that these optional coverages may have their own deductibles.

 

Source: Canadian Underwriter

Blenheim Office

24 Marlborough St. N., Box 479
Blenheim, ON N0P1A0

Phone: 519-676-8159
Fax: 519-676-0020

Chatham Office

250 St. Clair St.
Chatham, ON N7L 3J9

Phone: 519-352-4343
Toll Free: 1-800-561-4949
Fax: 519-352-6484

Essex Office

29 Talbot St. N, Box 69
Essex, ON N8M 2Y1

Phone: 519-776-6457
Fax: 519-776-7400

Harrow Office

65 King St. W., Box 790
Harrow, ON N0R 1G0

Phone: 519-738-2277
Fax: 519-738-2279

Tilbury Office

59 Mill St. E, Box 1239
Tilbury, ON N0P 2L0

Phone: 519-682-0202
Fax: 519-682-2391

Wallaceburg Office

403 Wellington St.
Wallaceburg, ON N8A 2Y2

Phone: 519-627-1777