Choosing The Right Level Of Coverage For Your Vehicle In Ontario
Car insurers have a wide range of options for Ontario drivers seeking to both meet the minimum requirements mandated by their province along with coverage for specific events. Many companies make this easier by offering packages that bundle the coverage required by law along with popular extras, but it is important to be aware of options individually to choose the ones that best suit your needs and budget.
Minimum Insurance Requirements
The Financial Services Commission of Ontario states the following types of coverage are required for all car owners:
- $200,000 of liability coverage, which pays another party for damages and injuries for an at-fault accident
- Accident benefits that cover medical expenses for you following a car accident, regardless of who is at fault
- Direct compensation and property damage for your vehicle and its contents
- Uninsured coverage to cover medical and vehicle damage costs following an accident caused by a driver who does not have auto insurance
Although a typical insurance package will provide you with at least the minimum coverage required, you may want to consider extras to either increase the maximum payouts mandated by law or those that supplement different needs following an accident.
The Perils of Car Ownership
Province-mandated coverage protects you against losses during a car accident, but there are other situations in which your car may be damaged that may not be covered. These are called perils, and you can buy extra coverage to compensate you for many of them including:
- Flying objects
Many insurers allow customers to pick and choose which situations they would like covered. Also, you can buy a single add-on called comprehensive coverage that protects against a number of different perils. When considering this, ask your broker what exactly is covered as it can vary depending on the insurer.
Getting Back on the Road
Following an accident, you may be left without a working car until repairs are complete, or you might need to take unpaid time off work as you recover from any injuries. Thankfully, you can add coverage to both pay for car rentals and the majority of your salary for a specified period following a serious accident. If you are interested in these and other enhancements, check with your insurer to see how much is covered and for how long.
Deductibles vs. Premiums
Before deciding on the best insurance options for you, take a step back and see how they will affect your premium and deductible costs. If you prefer to pay a high deductible in the event of a loss, this has the benefit of lowering monthly costs, for example. Also, some extras may have deductibles of their own, so the higher out-of-pocket cost may not be best in the long run.
Although all policies must have a minimum level of coverage, you can buy protection from many of the scenarios that are not covered. However, these will add to the cost of your monthly premium and may also increase your deductible. Speak with an insurance broker (such as one from Northgate Insurance Centre) today to see how to best protect you and your car.