Car Insurance in Ontario - Four Important Coverages to Know About

When evaluating your car insurance in Ontario it can seem like everything is the same. If you are shopping your price around at your renewal don`t let a low monthly price tempt you into switching to an inferior insurance company. These are four important coverage's available on the marketplace so take a look at them to see if you have them included on your policy and see if you are actually getting your money`s worth.


There are a few "extra" options when it comes to car insurance in Ontario that are well worth their weight in gold. Whether you are shopping for car insurance or just reviewing your current policy make sure the coverages listed below are included in your policy.

Accident Waiver/ Claim's Forgiveness

If you are a driver who has been licenced and insured for multiple years and have a clean record you should make sure you have this on your policy. Without it, a single at-fault accident such as a parking lot fender bender could double your rates for roughly 6 years. For someone paying roughly $150 a month now that would translate into paying over $9000 extra by the end of the sixth year.

Most companies offer a coverage that will ignore or forgive this first claim leaving your driver rating untouched. It is by far the most important coverage on car insurance policy, make sure it's there. If you don't have it, shop around to find someone who will offer it.

Waiver of Depreciation (OPCF43)

This coverage, (called OPCF 43 in insurance lingo), waives the depreciation of your vehicle when you have a claim. It's only available on new vehicles but is well worth its price tag.

Here's an example of what it does. You buy a new mustang for $30,000. You drive it off the parking lot and smash into a building. Your claim settlement without waiving the depreciation would be around $25000-$28000 without this coverage. You lose thousands of dollars after driving for 5 minutes. As soon as you drive your new car it has depreciated and your claim settlement would reflect that. With this coverage you get the full amount back. You can now stroll back into the dealership and buy another mustang without skipping a beat, (make sure that one has OPCF 43 on it too!)

Loss of use (OPCF20)

If you are responsible for an accident, you will have to pay for your own rental vehicle unless you have this coverage. With different limits available anywhere from $900 to $1500 total coverage you could find that when you crashed your Mercedes CLK that your rental coverage only covers a small Hyundai accent. If you want to be riding around in style make sure you pick a high enough limit.

What you can do...

The best solution to make sure you have these coverages is to call your insurance broker or agent. If you don't have them definitely shop the market to make sure you do. I suggest using a third party company like www.topquote.ca to gather your information and have the agents and brokers compete for your business without having to waste your time with multiple questionnaires to get your car insurance quotes.

Author

Malcolm Went, former insurance agent and broker contributes articles related to auto insurance courtesy of TopQuote.ca. TopQuote.ca allows you to get the best auto insurance quotes by having insurance agents and brokers compete for your business. Completing a fast and easy 5 minute form can save you hundreds of dollars on your car insurance. For more information on auto insurance related issues, visit our TopQuote.ca website.