Basic vs. Optional Auto Insurance Coverage

At-a-glance Ontario auto insurance requirements and options.

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Mandatory Vs. Optional Auto Insurance Coverage in Ontario

To legally drive a vehicle in Ontario, your auto insurance policy must include: Third Party Liability; Accident Benefits coverage; Uninsured Automobile coverage; and Direct Compensation-Property Damage coverage. You’ll likely want to extend your policy beyond the mandatory coverage to increase your protection and benefits. Your insurance broker will help you understand and decide on the best level of protection to consider. The table below describes both mandatory and optional coverage available to Ontario drivers.

= Mandatory auto insurance coverage in Ontario.

CoverageMandatory CoverageOptional Coverage
Liability Coverage Learn more
Third Party Liability$200,000 in coverage for property damage, injury, or death due to an accident that you are responsible for.Coverage may be increased to $500,000, $1 Million or $2 Million.
Recommended limit is $2 Million
Accident Benefits Learn more
Income Replacement BenefitsWeekly income replacement benefits of 70% of your gross income up to $400/weekWeekly benefits maybe be increased to $600, $800 or $1,000
Medical, Rehabilitation and Attendant Care Benefits
  • Non-catastrophic Injuries (E.g., sprains, broken bones, whiplash): $65,000
  • Catastrophic Injuries (E.g., loss of limb, quadra/paraplegia): $1,000,000
Non-catastrophic Injuries: May be increased to $130,000

  • Increase $1,000,000 for all injuries, for a total of $2,000,000 for Catastrophic Injuries
  • Increase combined all injury benefit to $1,000,000 and Increase Catastrophic Injuries to $2,000,000*

Recommend to at least increase to $1,000,000 for all injuries

Caregiver BenefitsCatastrophic injuries only: If you can no longer care to your dependants as the result of an automobile accident:

  • A maximum of $250/week for the first dependant, and
  • $50 per week for each additional dependant
Benefits may be extended to include all injuries.
Housekeeping and Home Maintenance ExpensesFor catastrophic injuries only: If you need to hire someone to carry out your housekeeping or home maintenance responsibilities. Up to $100/week.Benefits may be extended to include all injuries.
Death and Funeral BenefitsA payment of:

  • $25,000 to your spouse,
  • $10,000 to each of your dependants, and
  • A maximum of $6,000 for funeral expenses
Benefits may be increased to:

  • $50,000 to your spouse,
  • $20,000 to each of your dependants, and
  • $8,000 for funeral expenses
Dependant Care BenefitsNot CoveredCovers care for your dependants if you’re employed and injured in an auto accident.

  • Up to $75/week for the first dependant, and
  • $25/week for each additional dependant
IndexationNot CoveredProvides for an annual adjustment of your benefits to account for inflation. Adjust annually according to the Consumer Price Index of Canada
Coverage for Loss or Damage to Your Vehicle
Direct Compensation – Property Damage CoverageCovers damage to your vehicle and its contents in the case of an accident for which you are not responsible. Learn moreNo further options
Collision or Upset CoverageNot CoveredCoverage for losses resulting from damages to an insured vehicle is involved in a collision with another object; vehicle, trailer attached to a vehicle, the surface of the ground, and any object in or on the ground.Learn more
Specified Perils CoverageNot CoveredCovers losses caused by a specific event, such as fire; theft or attempted theft; certain natural disasters; explosion; civil disturbance; and various other perils.Learn more
Comprehensive CoverageNot CoveredCovers the cost of repairing or replacing your vehicle from damage not caused by collision. Includes incidents listed under Specified Perils coverage, such as fire, theft, natural disasters, and more. Learn more
All Risk (All Perils) CoverageNot CoveredCombines Collision or Upset and Comprehensive coverages. Also covers loss or damage caused by theft by someone who lives in your home or by an employee who has access to your vehicle. Learn more
Coverage Against Uninsured Drivers and Hit & Runs Learn more
Uninsured Automobile CoverageCovers you and your family against injury or death by an uninsured or hit-and-run driver, and against damage to your vehicle by identified, uninsured drivers.Learn moreNo further options

*If you purchase the additional Medical, Rehabilitation and Attendant Care benefit for both catastrophic injuries and for all injuries, the total eligible benefit amount for a catastrophic impairment would be $3,000,000

The table above should help you better understand the auto insurance options available to you in Ontario; however,remember to speak with your broker before making any final decision on the protection you need. At Mitchell & Whale, we work with almost 40 of the best Insurance companies in Canada in order to find you the broadest coverage in Ontario, and at the best rates available.

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