Despite the 16 lane highways, the rage-inducing commutes, and year-round road repair, Toronto is still relatively safe for driving. According to a 2013 report, Torontonians have the 2nd lowest auto accident fatality rate in North America.
Car insurance in Toronto, and across Ontario is a requirement for all drivers. To operate a vehicle in Toronto, you must have insurance. To get the best car insurance quotes in Toronto, it’s vital to understand how it works.
Toronto operates in a no-fault insurance system. No-fault means drivers use their own insurance company regardless of who is at-fault in an accident. In other words, you only ever deal with your own insurance company for a claim or following an accident.
Ontario auto insurance is provided by private insurance carriers and is regulated by the Financial Services Regulatory Authority of Ontario (FSRAO). FSRAO ensures rate increases are substantiated. Simply put, an insurer can’t raise rates without prior approval from the regulatory body and is based on their financial records.
Available Toronto car insurance coverage is broken down into two categories – mandatory and optional.
Mandatory Toronto auto insurance coverage includes:
- Third-party liability
- Accident benefits
- Uninsured automobile insurance
- Direct Compensation Property Damage (DCPD)
Optional Toronto car insurance coverage includes:
- Collision insurance
- Comprehensive car insurance
- Specified perils
- All perils
Also available in any city in Ontario are Optional Policy Change Forms (OPCF) which are coverage enhancements. Here are 4 common Ontario endorsements.
- OPCF 20 – covers the cost of a rental vehicle while yours is being repaired or replaced
- OPCF 27 – Ports your existing insurance to a rental car or car you borrow
- OPCF 39 – Your insurer forgives your first accident claim so it doesn’t impact your insurance rate
- OPCF 43 – Removes depreciation in calculating the value of your car when settling a claim