Ontario has a no-fault insurance system. But that doesn’t mean there is no fault assigned to a driver or drivers involved in a collision. A basic commercial auto insurance in Ontario includes the following mandatory coverages:
- Third-party liability provides financial support if you are responsible or at fault for an accident that causes property damage, personal injuries to another person, or death. The law requires you to carry a minimum of $200,000 worth of third-party liability coverage, but it’s recommended you increase the coverage limit to at least $1 million.
- Direct compensation-property damage (DCPD) allows you to file a claim to your insurance company for compensation directly. To qualify for DCPD compensation, the collision must have taken place in Ontario, you must not be at-fault for it, and all the vehicles involved must be identified and insured.
- Accident benefits include payment for your medical bills and rehabilitation regardless of who is at fault for the accident. The law requires you to carry a minimum of $200,000 worth of accident benefits coverage, but you can increase it to ensure you’re adequately protected.
- Uninsured auto pays for damages to your vehicle if you’re involved in an accident with an uninsured motorist or an unknown driver who commits a hit-and-run. The law requires you to carry a minimum of $200,000 worth of uninsured auto coverage.
There are optional coverages you can add to a standard commercial auto insurance policy in Ontario. Among the most common are:
- Collision or upset coverage
At-fault accidents can happen to anyone. Collision coverage pays to repair or replace another driver’s vehicle resulting from the collision you are responsible for causing.
Damages to your car from severe weather such as a hailstorm or because of vandalism is what comprehensive coverage protection provides. It also covers the cost to replace your car if it’s stolen.
It’s the best of both worlds! All perils coverage combines collision and comprehensive coverages.
- Specified perils coverage
Specified perils, or named perils, only covers incidents that are specifically named in your policy, such as theft or damage to your car from hail.
