Understanding your auto insurance policy can be daunting, but take comfort in knowing you are not the only one with questions. Ontario law requires that all motorists have car insurance, but do you have enough of the right coverage? Here are the answers to your FAQs about car insurance in Ontario:
CAN YOU GET TEMPORARY CAR INSURANCE IN ONTARIO?
Ontario is prominently known as the most expensive province in Canada for car insurance. If you are a driver seeking temporary coverage, options are pretty limiting. You may drive on the roads only if you have the mandatory minimum level of insurance for the vehicle. This compulsory insurance covers many areas, with third-party liability insurance taking center stage. This protects you from damage to other people’s health and property due to your driving fault.
Currently, short-term policies cannot be purchased in this province. Standard one-year policies are the most common type, though the shortest term is six months, which few companies offer.
DOES AUTO INSURANCE COVER PRE-EXISTING DAMAGE?
Insurance policies do not usually cover pre-existing damages. Pre-existing damage refers to any damages your vehicle already had before you bought your insurance policy. This may include previous damages you didn’t repair or normal wear-and-tear to your vehicle.
Your insurance company may deny you coverage for pre-existing damages because:
- You are not required to cover damages to your vehicle before you have a policy with them.
- They do not have the required facts to determine your claim.
Costs would rise if insurance companies covered pre-existing damages. In turn, the average policy rates would also increase, affecting any future claims you make. While buying insurance with pre-existing damage may be possible, you will have to notify your insurance company of these damages.
FAQs About Car Insurance: DO drivers without licences HAVE COVERAGE?
Unlicensed drivers do not have auto insurance coverage. If you let a driver without a licence use your car and they get into a car accident, your claim will likely be denied. In the event of an accident with an unlicensed driver behind the wheel, the vehicle’s insurance company will refuse to pay their liability or property damage. Your comprehensive coverage will usually pay you out and claim the damages from the other driver.
DOES MY AUTO INSURANCE COVER A BLOWN ENGINE?
The short answer is: No. A typical car insurance policy only covers accident-related repairs to your vehicle, not issues related to wear and tear. Whether it’s routine maintenance, a mechanical failure, or a blown engine, car insurance in Ontario will most likely not cover the costs of repairing or replacing your vehicle. The engine is one of the most expensive parts in your car, and an extended warranty may cover any damage or breakdown.
FAQs About Car Insurance: WHICH TYPE OF AUTO INSURANCE COVERS WINDSHIELD REPLACEMENT?
Do you have coverage for windshield cracks and damage? We don’t consider it until a stone or other road debris flies up and hits the windshield. Driving with a cracked windshield can compromise your safety. In most cases, auto glass repair and windshield damage are not part of basic plans. However, they typically are with additional policies. Windshield repair insurance is an add-on that is common in comprehensive coverage. It includes the cost of repairing or replacing your windshield should it be damaged by stones and other debris coming into contact with it. If you do not have this additional protection, repairs may only be covered if caused by another vehicle or a falling object.
Avoid delaying the repair! Windshields with little to severe damage can reduce visibility and be a safety hazard. Check your agreement or speak with your isure broker to verify your coverage.
WILL AUTO INSURANCE COVER ROAD DAMAGE?
Nothing can derail your daily commute more than a sudden jolt to your car and the realization that you drove over a pothole. Understanding your insurance policy and any additional coverages is essential at times like these. If your wheel and tire are damaged due to potholes, your car insurance in Ontario will likely cover the damage under the collision or all-perils provision of your policy. These are optional add-ons to your policy. If you decide to submit a claim for the damage, please remember that you are responsible for paying the deductible first. If you have a $500 or $1000 deductible and the pothole damage is less than this amount, filing a claim would not make sense.
You should also be aware that if you strike an object on the road, your insurance company will deem it an at-fault claim. At-fault accidents stay on your record for a minimum of six years and could cause your rates to rise at renewal time.
DOES MY AUTO INSURANCE POLICY COVER HAIL OR WATER DAMAGE?
While car insurance is mandatory in Ontario, the minimum insurance requirement doesn’t provide coverage for any vehicle damage. Basic car insurance in Ontario does not cover hail or water damage to your vehicle, despite living in a country with several months of winter. In this case, additional comprehensive coverage is a requirement for both.
Most comprehensive coverage will cover hail damage on your vehicle, but double check with your isure broker regarding the fine print. Some insurance providers also require a declaration for storm damage on your car.
If you drive through water and it causes damage to your vehicle, you can also claim this under your comprehensive coverage. However, water damage from leaving your windows open is not covered because it is preventable. In summary, you cannot know how much water will cause severe damage to your car. Even a small puddle could splash water beneath your vehicle and cause damage to your electronics. If possible, aim to avoid water obstacles whenever it is safe to do so.
FAQs about Car Insurance: IS MY ATV COVERED UNDER MY AUTO POLICY?
No, you’ll need separate off-road vehicle insurance in Ontario to drive all-terrain vehicles on public property or to access public roadways. If you have an ATV in Ontario, you will probably use it in public areas. Therefore, you require insurance for these recreational vehicles, just as you would for a car. You can get coverage when you’re out on the trails or for storage during the off-season.
It is not mandatory to be insured if you ride on private property. However, making your policy worthwhile takes only one accident or crash. It is important to remember that if you get into an accident or have your off-road vehicle stolen without insurance, you’ll be financially responsible for paying for damages or replacement. The upside, however, is that you may get a discount on vehicle coverage if you bundle your policies with the same ATV insurance company. Ask your isure broker for details!
I ACCIDENTALLY HIT AN ANIMAL WITH MY CAR. DOES THIS AFFECT MY CAR INSURANCE?
One of Ontario’s most confusing questions about car insurance involves wildlife damage. A collision with an animal can cause severe damage to your vehicle. Comprehensive coverage is an optional addition to your car insurance that helps repair or replace your car from damage outside your control, such as hitting an animal.
In Ontario, hitting a live animal is a not-at-fault accident and should not impact your premium. However, suppose you hit a wild animal that was dead from a previous collision. In that case, the accident will most likely fall under your collision insurance, and you may see your premium increase as it may be deemed “avoidable.”
We hope we’ve answered all of your standard car insurance questions. If you have further questions, please contact your isure broker today!
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