Auto Insurance in Ontario Explained

Insurance Insights | January 25, 2022

Auto Insurance in Ontario Explained

Our philosophy is always better to be safe than sorry. Having access to a vehicle is a luxury. At the drop of a hat, you have the freedom to get up, get in your car, and go wherever you like. This is especially true for teenagers who have just obtained their license and are eager to get on the roads. 

However, whether you are using your vehicle to pick up groceries, visiting friends, or commuting to work, driving a car also means being prepared for anything to happen, if you’re a car repair shop owner you know how quickly and easily mistakes and accidents can happen. 

This includes recklessness from other drivers or employees. It’s important to obtain the proper protection to ensure your and your family’s peace of mind.

What Is Mandatory as Part of Your Auto Insurance Coverage In Ontario?

In Ontario anyone who wants to drive a vehicle must have two things:

  1. A Valid Driver’s License 

  2. Vehicle Insurance

If you want to drive, the vehicle you are driving must be insured. Of course in a perfect world, nothing would go wrong, but we always need to be prepared for the unexpected. Better safe than sorry. This will protect you from any major losses, should anything happen. 

By Law, You Are Entitled to Receive the Following Coverage As Part of Your Policy

Third-Party Liability 

This is the portion of your insurance policy that will protect you if anyone sues or threatens to sue you for a physical injury or damage to their vehicle or property. For example: If you’re backing out of your friend’s driveway and accidentally run over his kid’s expensive bike, or you pull out of your driveway and slide over a patch of black ice and hit your neighbour’s fence, you will be covered. This portion is important because it will save you costly legal fees, the amount you may have to pay to cover a lawsuit and any other hidden expenses. 

Accident Benefits

Accident benefits will provide compensation and medical care coverage should you be injured in an accident. These benefits are your legal right whether or not you were at fault, and are important in covering costly recovery expenses and income replacement. Have more peace of mind knowing that we will assist in aiding your income and supporting your recovery process should an accident occur.

Under Accident Benefits you may be entitled to: 

  • Income replacement

  • Caregiver benefits

  • Non-earner benefits 

  • Medical benefits 

  • Rehabilitation costs

  • Attendant care 

  • and compensation for other expenses. 

Uninsured Motorists 

This portion of your auto insurance policy will protect you if you are injured by another driver that does not have valid insurance on their vehicle, or by a hit-and-run driver. In this case, this policy will cover your damage and medical costs.

Direct Compensation and Property Damage Insurance

In Ontario, DCPD is the part of your policy that allows you to go directly to your auto insurance company for compensation after a no-fault accident. If your car is damaged in an accident that you didn’t cause, the insurance carrier will process your claim directly, recover all damages, and compensate you accordingly. 

To qualify for DCPD there are a few criteria you must meet: 

  1. You must not have caused the collision or been at fault for the accident 

  2. One or more vehicles must be involved

  3. All vehicles must be identified and insured 

  4. The accident must have happened in Ontario 

Ontario Auto insurance offers mandatory coverage as part of your policy but it also offers you sliding scale options you can use to design your policy in a way that meets your lifestyle. 

This will allow you to adjust your policy based on your needs and vehicle value.

Some Custom Options for Your Auto Insurance Policy Include


This part of your auto insurance policy pays for the damage or replacement of your automobile if you are involved in a collision with another vehicle or object.


Pays for damage to your car for things like fire, theft, glass breakage. That even includes damage by falling or flying objects or missiles. 

Final thoughts

With the right insurance coverage, you can have an extra sense of protection while making the most of driving your car. 

Our auto insurance policies will protect you from costly vehicle damage, unforeseen medical costs, lost wages, theft and more.

Regardless of which package you chose, when you insure your car, you are buying peace of mind in knowing that you are prepared for the worst-case scenario. Should anything happen, we got you covered. Looking for auto insurance for yourself or your family? 

Contact us today and we are happy to help find the policy right for you.