What’s in a Standard Automobile Insurance Policy?

Family in car

If you own a vehicle in Ontario, here is the standard automobile insurance coverage you are required to have by law as a minimum:

Third-Party Liability Coverage:​

This part 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.

Statutory Accident Benefits Coverage:​

This section of your auto insurance policy provides you with benefits if you are injured in an automobile accident, regardless of who caused the accident. It includes supplementary medical, rehabilitation, attendant care, caregiver, and income replacement benefits.

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

This section of your car insurance policy covers damage to your vehicle or its contents, and for loss of use of your vehicle or its contents, to the extent that 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, instead of from the person or insurer of the person who caused the damage.

Uninsured Automobile Coverage:​

This 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.​

Choices for Additional Coverage

In addition to the minimum coverages mentioned above, which you must have as required by law, you may want to have even better protection. Two common options are:

  1. Increased Third-Party Liability Coverage:​ You are legally required to have a minimum of $200,000, but you may want to increase this coverage. The additional cost is small in most cases to increase your third-party liability coverage to $1 million or $2 million.
  2. Optional Accident Benefits Coverage:​ You may also want to consider increasing your statutory accident benefits coverage with any or all of the following:
    • Income Replacement Benefits
    • Medical, Rehabilitation and Attendant Care Benefits
    • Caregiver Benefits (if you are providing full-time care to dependents)

These options and others allow you to customize your auto insurance policy to better suit the needs of you and your family.

Expert Advice about Standard Automobile Insurance

For expert advice about what coverage is best for you, contact Mitchell & Whale at 1-800-731-2228 or email us at info@mitchellwhale.com. Why not see what our team of insurance experts can do for you!

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