Car Insurance Coverage Types
There are mandatory and optional coverage types that drivers can choose from. According to Ontario law, drivers should carry mandatory insurance coverage of:
Third-Party Liability Coverage
Third-party liability coverage serves as protection in cases where someone sustains injuries, fatalities, or property damage due to a car accident. It will handle settlement costs and legal claims stemming from potential lawsuits, depending on the level of coverage you select. In Ontario, the minimum mandatory third-party liability insurance is set at $200,000, but you have the option to raise this amount. For instance, many drivers choose to increase their third-party liability insurance from $200,000 to $1 million.
Accident Benefits Coverage
Regardless of fault in the accident, this segment of your auto insurance policy offers you advantages in the event of injury. These benefits include rehabilitation, aid in replacing lost income, additional medical treatment, support for attendants, caregiver assistance, and benefits for those without income. Some of these coverage options can also be enhanced if you choose to do so.
Uninsured Automobile Coverage
In the unfortunate event that you are injured or lose your life due to a hit-and-run incident or an uninsured driver, this portion of your policy will provide protection for both you and your family. Additionally, it extends coverage to any damage inflicted on your vehicle by an uninsured driver.
Direct Compensation – Property Damage (DC-PD)
This segment of your auto insurance policy covers damages to your vehicle or its contents, as well as any loss of use resulting from an accident where another party is at fault. The term ‘direct compensation’ signifies that your own insurer still compensates you, even when another party is responsible for the damage.
For the DC-PD (Direct Compensation – Property Damage) part of your auto insurance policy to come into effect, the following conditions must be met:
- The accident took place in Ontario.
- There was involvement of at least one other vehicle.
- At least one of the involved vehicles is also insured by an insurance company authorized to operate in Ontario or has entered into a special agreement with FSCO (Financial Services Commission of Ontario) to provide this coverage.
Although regular auto insurance provides fundamental coverage for car owners, Cambridge drivers have the option to customize and improve their policies with various additional coverage types, such as:
This optional coverage provides protection for damages incurred when a covered vehicle overturns or comes into contact with an object, such as another vehicle. The term ’objects’ encompasses anything on the ground, the ground itself, a trailer, or any other vehicle that is connected to the insured vehicle specified in your insurance policy.
A comprehensive add-on includes coverage for various incidents, such as specified perils, theft, vandalism, damage caused by falling or airborne objects, and losses that fall outside the scope of collision coverage.
Specified perils coverage is a type of insurance policy that provides protection for specific perils or risks that are explicitly listed in the policy. Unlike comprehensive coverage, which typically covers a wide range of risks, specified perils coverage only applies to the perils or events explicitly mentioned in the policy.
This bundles both collision and comprehensive insurance into a single policy. It also extends coverage to instances where a household member steals a vehicle covered by your insurance policy. Furthermore, if an employee steals your car while driving, servicing, or having it repaired, the All Perils add-on will provide compensation. For example, if you brought your vehicle to a mechanic and one of their employees stole it, this coverage would apply.
In addition, policyholders can add endorsements that allow you to modify, enhance, or reduce your insurance coverage. Some of the most frequently used policy endorsements include:
- Rented or Leased Vehicles (OPCF 5)
- Liability for Damage to Non-Owned Automobile(s) and Other Coverages (OPCF 27)
- Family Protection Coverage (OPCF 44R)
- Transportation Replacement (OPCF 20)
How do Cambridge’s rates compare to other cities in Ontario?
Cambridge car insurance rates average $1,334 each year. This rate is under the provincial average and slightly cheaper than the average insurance rate in Kitchener, which is around $1,500 per year. Rates in Waterloo and surrounding regions are approximately the same.
Compared to cities like Toronto, Richmond Hill, and Brampton, Cambridge’s car insurance rates are significantly cheaper in price. Most urban centres will find annual car insurance rates of over $2,000. However, compared to other suburban and rural regions, like Napanee and Cobourg, Cambridge’s rates are slightly more expensive in comparison.
Want to avoid high car insurance premiums? Insurance Hero compares insurance plans to find affordable options that protect you and your loved ones without going over budget.
How do I lower my Cambridge car insurance?
There are many ways to lower the cost of your car insurance. Maintaining a clean driving record is the easiest way to lower the cost of your car insurance each year. Insurance companies like safe drivers, because there is less risk for an insurance claim. Here are other ways you can lower your car insurance premium:
- Take driving lessons
- Increase safety measures of your car
- Install winter tires every year
- Bundle your insurance package
- Ask for discounts
How does car insurance work?
Car insurance is provided by private insurance companies, though you can go through a broker like Insurance Hero to help you shop and compare policies. All you have to do is provide us with information like your age, address, and car model, and we’ll search our partners for the best packages for you.
If you’re ready to purchase car insurance, or are looking to change your current policy, contact Insurance Hero today. We find you the most affordable car insurance policies without lowering your coverage, so you can put your money to better use!