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Different Types Of Car Insurance in Ontario

In Ontario, there are a few types of mandatory car insurance policies. In this blog we will look in-depth at the following: 

  1. Direct Compensation Property Damage

  2. Liability Coverage

  3. Uninsured Automobile Coverage

  4. Accident Benefits (SABS)

​Direct Compensation Property Damage

  • Main mandatory car insurance system in Ontario

  • Covers damage to vehicle where you are not at fault

  • Covers contents of vehicle

  • No matter who causes accident, driver deals with insurance

  • Rates could change if found at fault

Direct Compensation - Property Damage (DC-PD)Coverage:

This section of your automobile insurance policy covers damage to your vehicle or its contents, and for loss of use of your vehicle or its contents, if another person was at fault for the accident. It is called direct compensation because even though someone else causes the damage, you collect directly from your own insurer.

Liability Coverage

  • Second type of auto insurance in Ontario

  • Mostly insurance when you’re at fault for an accident

  • Liability for two categories: bodily and property

  • Coverage for other parties only: not own vehicle and equipment

Third-Party Liability Coverage:

This section of your automobile insurance policy protects you if someone else is killed or injured, or their property is damaged. It will pay for claims as a result of lawsuits against you up to the limit of your coverage, and will pay the costs of settling the claims. By law you must carry a minimum of $200,000 in Third-Party Liability coverage but options exist to increase the minimum amount.

Uninsured Automobile Coverage

  • Third type of car insurance in Ontario

  • Coverage only to cover you in an accident with a driver who is uninsured

  • Covers hit-and-run situations where one driver does not have necessary information

Uninsured Automobile Coverage:

Protects you and your family if you are injured or killed by a hit-and-run driver or by an uninsured motorist. It also covers damage to your vehicle caused by an identified uninsured driver.

Accident Benefits (SABS)

  • Final type of mandatory car insurance in Ontario

  • Known also as Statutory Accident Benefits Schedule (SABS)

  • Covers you in case of injury during an accident but also; drivers, passengers, bystanders, pedestrians 

  • Medical and rehabilitation are covered by accident benefits

  • Covers caregiver costs, care for children or other dependants

  • Covers lost income due to inability to work

  • Lump-sum payment to loved ones in case of own death

Statutory Accident Benefits Coverage:

This section of your automobile insurance policy provides you with benefits if you are injured in an automobile accident, regardless of who caused the accident, including supplementary medical, rehabilitation and attendant care, caregiver, non-earner and income replacement benefits. Options exist to increase most of these coverages.

We hope that you have a better understanding of Ontrio’s mandatory car insurance policies after reading this blog. For more information on Ontario’s insurance policies and the right coverage for you please contact our knowledgeable staff or fill out our Auto Insurance Quote form. 

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