Choosing an Auto Insurance Policy advice, Ontario drivers help guide, Canada safe driving tips

Choosing an Auto Insurance Policy

June 8, 2021

There are millions of drivers on the road in Ontario, and because it’s illegal to drive without insurance, it’s safe to say you’ll be looking for a policy at some point in your life. Choosing the right plan can be complicated and intimidating. The first step is knowing how much coverage you need in Ontario; you need at least accident benefits and third-party liability coverage. Only when you know this, can you compare between different insurance plans and select the best quote. Now that you know this, we’ll go over the different features you can get in a policy to help decrease the confusion.

There are hundreds of thousands of auto accidents every year in Ontario. You could be doing everything right and still be involved in a collision in some way. Your car could get seriously damaged, putting you into financial hardship. That’s why both private car insurance and Commercial Vehicle Insurance is so essential to keep you protected. In this article, we’ll help you discover how much coverage is best for you.

Choosing an Auto Insurance Policy guide
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Uninsured and Underinsured

If you happen to be hit by someone who’s uninsured or your car is involved in a hit-and-run, this coverage will pay to get your car fixed. Your medical bills, pain-and-suffering, and in the worst-case, funeral expenses for all passengers will be paid for by your insurance company.


The insurance company will pay your car’s repairs for collision coverage unless the repairs cost more than your vehicle. Then, the company will often write a check for the price of the car. This is an excellent policy to have, especially if you have a newer car.

Bodily Injury Liability

If you’re in a bad accident, this type of coverage will pay for your medical bills, rehabilitation costs, legal fees, pain-and-suffering costs, and funeral expenses. This protection extends to all passengers in your car as well as pedestrians and passengers from another vehicle.

Property Damage Liability

If you’re at fault in a collision, having this coverage will cover the cost of property and car damage. For example, if you swerve to miss something in the road and hit a mailbox, this policy will pay for the repairs or replacement.


You may assume that this coverage will cover everything, but that isn’t the case. This policy only pays for damages done to your car, not caused by a collision. So that would be things like fire, animals, theft, natural disasters, vandalism, falling objects, and riots. Many insurance brokers will require you to get this coverage if you’re leasing or still paying for your car. Speak with a broker to see if this is mandatory coverage for you.

New vs. Old Cars

Newer cars don’t always cost more to insure, though that is a common misconception because they’re worth more. Many insurance policies for new vehicles are less expensive because they have safety features built into them.

When coming up with a rate, insurance companies calculate the expected damage to your car. With advanced safety features, your vehicle won’t be damaged as much, resulting in lower prices. But, if you have a paid-off older vehicle, you may not need as much coverage. As long as you meet the minimum requirements for car insurance in Ontario, extra features may not be worth the additional cost.

Ontario Auto Insurance Policy Canada
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Leasing a Vehicle

With a leased vehicle, you may be required to buy gap insurance. This type of coverage will pay the difference between the car’s value and how much you owe if you’re in an accident or the vehicle is stolen. The company you lease your vehicle from may also require you to get collision and liability coverage to protect its investment if the car is stolen or damaged. Some leases come with this coverage without extra fees, so check your contract before buying a policy.

Choosing an Auto Insurance Policy Conclusion

Auto insurance is something you need whether you’re leasing a car, own your vehicle, or are driving someone else. You may be required to get some forms of coverage based on certain factors, so be aware of that when looking for a plan. But remember that auto insurance is there to protect you if something happens to your car.

Comments on this Choosing an Auto Insurance Policy guide article are welcome.

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