Car Insurance

Auto insurance policies usually have a combination of coverages to round out the protection for you, your passengers, and your vehicle. 

Car insurance policies will consist of coverage options such as: 

• Liability coverage
• Comprehensive coverage
• Collision coverage
• Parking coverage
• Auto insurance endorsements

Ontario requires a minimum of liability coverage to drive on public roads. If your vehicle is financed, you will likely be required to get collision and comprehensive auto insurance.

Auto liability insurance is the most basic type of car insurance and it is legally required to drive on public roads. It is the most affordable option for car insurance, although it does not protect your vehicle in an accident.

Liability insurance provides coverage for damages or injuries that you cause while driving your vehicle. There are typically two main components to automotive liability insurance:

1. Bodily Injury Liability: This covers medical expenses, pain and suffering, lost wages, and legal expenses for individuals injured or killed in an accident where you are at fault.
2. Property Damage Liability: This covers damage to other people’s property caused by your vehicle, such as their car, home, or personal belongings.

If you make a claim on your liability insurance, you do not have to pay an insurance deductible, but you can expect your insurance premiums to increase the following year.

In Ontario, you’re legally required to have a minimum of $200,000 in liability coverage. While this is the legally required minimum, Tango Insurance has a policy to insure no less than $2 million for liability coverage. 

We require $2 million in liability coverage to ensure our clients are getting adequate protection. The number of auto insurance claims that cost over $1 million in liability has skyrocketed since 2010. Your liability limit is the maximum amount the insurance company will pay out in the event of a claim. 

If you are in an auto accident that has $500,000 in property damage and $1 million in bodily injury damage, you would be liable for $1.5 million in damages. If your auto liability coverage is only $1 million, you would be held personally liable for the remaining $500,000 in damages. If you had $2 million in liability coverage under the same circumstances, your insurance company would pay out the entirety of the settlement on your behalf. 

Comprehensive coverage is optional insurance coverage that provides financial protection for you in the event that your vehicle is damaged outside of a collision with another vehicle. 

This includes protection for: 

• Glass:  Covers the cost of repairing or replacing damaged automotive glass (subject to deductible).
• Fire: If your car is damaged or destroyed by fire, it is comprehensive auto insurance that covers the damage and not your property insurance, even if parked in a garage.
• Theft: Covers the cost of replacing your vehicle in its existing shape. 
• Vandalism: Covers the cost to repair damage inside and outside of the vehicle. 
• Natural disasters: Tree falls, hail damage, flooding, tornado, etc. are covered under comprehensive coverage.
• Other

Glass coverage covers all outside glass on the vehicle from chips or brakes. This coverage is still subject to deductibles. It Covers the cost of repairing or replacing damaged automotive glass. 

Comprehensive insurance claims do require you to pay your deductible before coverage kicks in, although making a comprehensive claim does not impact your claims status or your insurance premiums the following year. Comprehensive is only mandatory for financed vehicles. 

Collision coverage is optional coverage that provides financial protection for you in the event that you are in a collision with another vehicle or an inanimate object on the roadway.

Liability and comprehensive insurance coverage do not offer any protection for your vehicle if you’re in an at-fault claim with another vehicle. Collision coverage will pay for the cost to either repair your vehicle or replace the value of the vehicle if it cannot be repaired/is not financially viable to repair.

Making a claim on your collision coverage will increase your auto insurance premium upon renewal. If you have an accident forgiveness endorsement (OPCF 39) on your insurance policy, you will not see a premium increase after your first at-fault accident. 

Collision coverage is the most expensive type of auto coverage and is only mandatory on financed vehicles. *Note that you must always maintain liability coverage in addition to collision coverage.

Deductibles can vary depending on multiple factors, but generally, they are between $500-$2,500 per claim with the most common deductible being $1,000 per claim. 

You can choose higher deductibles up to $25,000 per claim to help lower your annual insurance premium, although this is not recommended as you would need to pay $25,000 out of pocket before the insurance company would pay out anything. 

If you have an insurance record with claims or a driving record with tickets, your insurance company may require a higher deductible, usually a $2,500 minimum. 

If you are the owner of a high-value vehicle (over $100,000 in purchase price) the insurance company may require you to have a higher deductible. Every provider is different, but its deductibles are usually $5,000 or a percentage of the purchase price. If you have a $250,000 vehicle, a 5% insurance deductible would result in a $12,500 deductible.  

Parking insurance is a type of coverage designed for vehicles that will not be driven for extended periods of time, usually over three months. Parking coverage is the same type of coverage as comprehensive only without liability protection. This means that if the vehicle is damaged as a result of fire, theft, vandalism, or natural disaster, while on parking coverage, your insurance company will cover the damages. 

Since the coverage does not possess liability coverage, it is an excellent way of maintaining coverage on your vehicle for an affordable rate. However, since it does not have liability protection, it is illegal to drive a vehicle while it is on parking coverage. If you are caught driving a vehicle without liability insurance in Ontario, you will be subject to a fine of no less than $5,000 and up to $25,000. If you are in an accident while on parking coverage, you will be held personally liable for all damage you’ve caused. 

Yes! There are a number of auto insurance discounts available for drivers. 

• Multi-Policy Discount: Most companies offer a discount if you insure your property insurance and auto insurance with the same company. 
• Multi-Vehicle Discount: Having more than one vehicle on your auto insurance can qualify you for a discount on each policy. 
• Winter-Tire Discount: Drivers that can provide evidence of installing winter tires with the winter tire emblem, can earn discounts on their auto insurance. 
• Retiree-Discount: A discount for those over the age of 65 or in receipt of the Canada Pension Plan may qualify for an additional discount. 
• Graduated Drivers Licence (G Licence) Discount: If you have a G Licence, you can qualify for additional auto insurance discounts.