Buying your first car is exciting! However, there are a lot of things to consider regarding insurance coverage. If you live in Ontario, you’re going to appreciate these curated and insightful auto insurance information tips.
Without a doubt, car insurance can be confusing, especially if it is the first time coordinating it. It’s paramount you have accurate information, that way you’re better able to make informed decisions while selecting insurance coverage options that specifically fit your individual situation.
If you’re thinking about purchasing a used vehicle, read this, What You Need to Know About Buying a Used Car.
Valuable Information First Time Car Buyers Need to Know
In Ontario, the law requires that all motorists have auto insurance. There are several types of coverages available that are either mandatory or optional.
Mandatory Coverages in Ontario
If you own a vehicle in Ontario, you are required to purchase the following auto insurance coverage:
- Third-Party Liability Coverage | This section of your auto insurance policy protects you if someone else is killed or injured in an accident, or if their property is damaged. By law, you must carry a minimum of $200,000 in Third-Party Liability coverage but you have the option to increase this amount.
- Direct Compensation Property Damage | This section of your auto insurance policy covers damage to your vehicle or its contents, and for loss of use of your vehicle or its contents if another person was at fault for the accident. Even though someone else causes the damage, you collect directly from your own insurer.
- Accident Benefits | This section of your auto insurance policy provides you with benefits if you are injured in an accident, regardless of who was at fault. For example, it may cover funeral costs, medical costs, and income replacement benefits if you can’t work.
Optional Coverages in Ontario
- Collision Coverage | This type of car insurance covers the cost of repair bills if you damage your vehicle in an accident by hitting an object or another car. The amount of coverage you have will depend on the coverage limits set in your policy. There is also coverage available if you are the victim of a hit and run.
- Comprehensive Coverage | This type of coverage pays for the cost of repairing or replacing your vehicle up to the actual cash value if it’s damaged by unexpected situations such as losses due to theft, fire, and glass damage.