Auto Insurance

Auto insurance will cover damages to a car, injuries to drivers, passengers or pedestrians. Auto insurance is a form of protection. In Ontario, car insurance is mandatory by law.

Your driving record is the most important factor. Insurance companies also consider your vehicle based on criteria such as:

• Type and age
• Whether the car is used for business or pleasure
• Where and how far you drive, and how many people use the vehicle.
• Your record of moving violations are used by most insurance companies as an indicator of how responsible a driver you are.

If you are considered to be a risk, the higher the premiums you will pay.

• No. A person who owns more than one vehicle can be the primary driver of multiple cars. But you lose that privilege when the number of cars matches the number of licensed drivers within the household. Under that scenario, every car needs to be matched with a primary driver.

Your car insurance company is saying you were either responsible for this collision (“at fault”) or not responsible for it (“not at fault”). No matter how big or small a collision, your car insurance company will assign a percentage of fault to you and a percentage to the other driver involved. They base this percentage on a strict set of collision scenarios that have been established over time and are included in an official document called: “Fault Determination Rules”. Fault is not a judgment call and your insurance broker does not have the ability to change your at-fault rating. If you are considered fully (or even partially) at fault, your car insurance company is required to mark “at fault” on your insurance record.

As soon as they pass their test you should contact your insurance broker. Many companies will start accumulating their insurance history from their G1 license date.  There is no charge for placing them on your policy until they pass their G2 license.  Having them take an approved driver training course will not only make them better drivers, but it will also help lower their insurance premium.

Licensed sons or daughters, residing in your household must be reported to the insurance company where they will be noted as drivers on the policy. Typically children under 25 with a licence class higher than a G1, who are not the primary driver of any vehicle, will be listed as an ‘Occasional’ drivers and have a premium charge. In rare occasions where the child has a poor driving history (traffic convictions & accidents) there may be instances where the insurer excludes them from driving any vehicle on the policy by having you sign an “Excluded Driver Form”. Usually, coverage would automatically apply to children living away from your home who are not regular or frequent drivers of your vehicle, however you would want to check with your Broker about your obligations to have them noted on your policy or not.

The basic auto insurance policy in Ontario does not automatically include coverage for rental vehicles. Be sure to check with your Broker on the maximum limit they will cover for a rented vehicle, the restrictions on which drivers are covered and if there are territorial limitations. Many insurers only provide this coverage for rentals in the continental borders of Canada and the US.

Traffic tickets can raise your auto insurance premiums. Unless, of course, you’ve purchased a policy that offers forgiveness for your first infraction. These products can be purchased on top of your policy (and you’ll want to purchase it before you need it). Serious infractions can definitely send your premiums skyrocketing — a major criminal conviction can double your premium. But insurance companies don’t take the number of demerit points you have into consideration. The type of offence matters more.