Minimum Car Insurance Requirements in Ontario
Buying a car requires examining a lot of costs, from the vehicle’s actual purchase price to how much we can expect to spend on maintenance. However, the cost of car insurance can easily be overlooked during the excitement of buying a new (or new to you) car, truck, or SUV. It’s important to note that we are not licensed insurance brokers. We are going to talk about some basic information regarding minimum car insurance requirements in Ontario. This is only meant to give new buyers something to think about when they are car shopping. Please contact a licensed insurance broker to discuss your specific insurance needs. Let’s take a closer look at a few things you need to know.
READ MORE: Teach Your Old Car New Tricks
How Much Insurance Do I Need?
The Financial Services Commission of Ontario (FSCO) has implemented some minimum insurance standards that all drivers need to follow. According to the commission, all Ontario drivers must have at least $200,000 in third-party liability coverage. Additionally, car owners must also have a policy that includes uninsured automobile coverage. Travelling to different areas of the country may require different coverage policies. This is one of those things that must be discussed with a licensed insurance broker.
What Other Kinds of Car Insurance Should You Get?
Having minimum coverage and uninsured driver policies are only a starting point. While there is certainly such a thing as being overinsured, nobody wants to find out they are underinsured. Here are a few other policies you might want to discuss with a trusted and licensed broker:
- Statutory Accident Benefits: This policy will pay for supplemental medical care, attendant care and physical rehab after a car accident.
- Direct Compensation/Property Damage: Commonly referred to as DC/PC policies, this kind of insurance will pay for damage to your vehicle or pay you out if the accident results in a total loss of your car. This policy comes into play when the other driver is found to be at fault.
- Supplemental Policies: For every required or recommended insurance policy, you can buy supplemental coverage that will exceed the province’s bare minimum coverage rules.
What Happens if You Don’t Have Car Insurance?
Not having car insurance is one of the most financially irresponsible things a person can do. Even if you never have an accident, being pulled over for speeding or other traffic violation will get uninsured drivers in additional trouble. Being caught without valid auto insurance can lead to fines ranging from $5,000 to $50,000. Your driver’s license could also be suspended, and your vehicle could be impounded.
Also, letting a car insurance policy lapse for almost any reason can cause insurance companies to classify you as a ‘high risk’ driver, leading to more expensive premiums.
Having an idea of the kind of vehicle you want to take home will help you shop for insurance. Make an appointment with an Autohouse Kingston product expert, today, to find an affordable vehicle to go with your new insurance policy.