If you want to legally drive a vehicle in Ontario, it’s important to purchase auto insurance that includes the following:
• Third party liability
• Uninsured coverage
• Accident benefits coverage
• Direct compensation-property damage coverage
All of these things are required by law, so you’ll want to discuss them with your insurance company or broker upfront.
At the bare minimum, your policy will include the four types of coverage detailed above. However, that may not be enough to give you peace of mind. You may have interest in optional auto insurance coverage, which extends your policy with additional protection and benefits.
Let’s take a look at a few of the most common types of optional coverage:
• Mandatory: $200,000 in coverage for property damage, injury, or death due to an accident that you caused.
• Optional: coverage can be increased to as high as $2 million.
• Mandatory: weekly income replacement benefits equal to 70 percent of your gross income, up to a maximum of $400 per week.
• Optional: coverage can be increased to as high as $1,000 per week.
• Mandatory: Catastrophic injuries coverage of $1 million
• Optional: coverage can be increased to as high as $2 million
• Mandatory: maximum of $6,000 for the cost of a funeral, $10,000 paid to each dependent, and $25,00 paid to your spouse.
• Optional: maximum of $8,000 for the cost of a funeral, $20,000 paid to each dependent, and $50,00 paid to your spouse.
• Mandatory: not provided
• Optional: provides care if you are employed and suffer injuries in an accident. You can receive up to $75 per week for your first dependant, along with an additional $25 per week for every other dependant.
When buying auto insurance in Ontario, you have no choice but to secure the mandatory coverage required by law.
While this is a good place to start, don’t hesitate to learn more about optional auto insurance coverage. As you compare rates, you may come to find that you can add optional coverage without greatly increasing your monthly premium.
For more information on mandatory and optional coverage, contact us to discuss your personal situation, budget, wants, and needs.