So, the Ontario government mandates everyone who wants to drive a car must have 2 main things; A valid drivers license, and car insurance. We buy vehicle insurance because we have to. We are required by law to be financially responsible for any accident we cause.
The Insured — the registered owner of the vehicle
The Vehicle — self explanatory. There are vehicles other than cars and vans that can be covered on an insurance policy., such as recreational vehicles and trailers. (i.e ATVs, snowmobiles, trailers)
The Coverage — there are compulsory and optional coverage available. The compulsory coverages are:
Third Party Liability — also called legal liability coverage that provides insurance for bodily injury and property damage arising from the use, ownership, or operation of a motor vehicle subject to exclusions (i.e vehicle use, war, limitations of who may drive the vehicle, and more)
Accident Benefits — coverage for costs arising from bodily injury to the driver and passengers including medical and funeral expenses, disability and death benefits.
Uninsured Automobile — coverage for bodily injury to the name insured and to any passengers in the vehicle in a situation where the other driver is uninsured or worst, is unknown (i.e hit and run accidents).
The optional coverages are:
All Perils Coverage — this is an all – risk coverage. This is the broadest coverage.
Collision or Upset — this coverage protects the insured against loss or damage to the vehicle resulting from collision with another object which is in contact with the road surface.
Comprehensive — this coverage includes damage to insured’s vehicle resulting from any peril other than collision.
If you are tired of reading, one of our experienced Advisors will be more than happy to assist you in defining the right policy for your needs, they LOVE to chat about vehicle insurance!
We’ve established that insurance is a necessity, so if we have to buy it, we want to ensure we are getting the best deal for our dollar. Call us now!