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The Basics of an Ontario Auto Policy – What You Need to Know

It goes without saying that no one wants to be injured in a car, truck or pedestrian accident. If you are, however, does your auto insurance policy provide sufficient coverage? When Ontario drivers buy auto insurance, they often do not know what types of coverage they are buying. Moreover, they often do not know how the coverage works. One reason is due to the fact that drivers who buy auto insurance are usually first time car owners and have never had to buy auto insurance before. This article will break down the basics of a standard auto insurance policy.

Third Party Liability Coverage

Third party liability coverage kicks in to protect the insured driver when he/she causes an accident and injures another driver, passenger or pedestrian. If an injured individual files a lawsuit against the at-fault insured driver, this coverage pays for the injuries and damages to the injured individual up to the limit purchased.

Ontario law requires all insured drivers to carry a minimum of $200,000 in third party liability coverage.

Statutory Accident Benefits Coverage

By far, this is the most commonly misunderstood coverage. Many insured drivers think that if they are injured in a car accident caused by another driver, the other driver’s auto insurance policy pays for the injured driver’s medical expenses. This is simply not the case. Rather, the injured driver’s own auto insurance policy provides medical benefits regardless of who caused the accident. Medical benefits are only one type of accident benefits coverage. There are other accident benefits, such as income replacement benefits, caregiver benefits, non-earner benefits, and attendant care benefits.

Uninsured Automobile Coverage

Another type of standard coverage is uninsured automobile coverage, which protects the injured driver and his family if he is injured or killed by a hit-and-run driver or an uninsured driver. However, the coverage provides only the amount of the minimum statutory third party coverage limit in the jurisdiction where the accident happened.

As discussed above, the minimum amount of third party liability coverage in Ontario is

$200,000. Therefore, an Ontario driver injured in a car accident in Kingston, Ottawa or Whitby, caused by an uninsured driver, can file an uninsured motorist claim, but the maximum amount he/she will be able to receive for the injuries and damages is $200,000.

If the driver is catastrophically injured, $200,000 is not enough to cover his damages. How do drivers protect themselves then? They can choose to buy optional benefits or add-ons. Stay tuned for an article which discusses Ontario optional accident benefits.

Help After a Car, Truck or Pedestrian Accident in Kingston, Ontario

If you were injured in a car accident or hit and injured by a car, you have legal rights. Call the auto accident lawyers at Bergeron Clifford to schedule a FREE consultation. 1-866-384-5886

Contact Bergeron | Clifford LLP

Let us help you if you have been injured anywhere in Eastern Ontario. Contact us at 866-384-5886 or fill out our online form. We can meet at any of our office locations, including Kingston, Ottawa, Whitby, Carleton Place, Perth or wherever is most convenient for you.

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