subject: Understanding The Minimum Insurance Requirements [print this page] Understanding The Minimum Insurance Requirements
If you're a driver in Canada, then you already know that having an insurance policy is mandatory. This ensures that in the event of any harmful or unfortunate events related to your car or truck, you will have coverage to help to bear the costs. The province of Ontario has a couple of special rules and regulations in regards to vehicle insurance. A lot of things will change throughout Canada on account of each province having marginally unique guidelines.
For example, Ontario has rather strict insurance policies. Some Ontario insurance policies are compulsory to have, such as collision car insurance. It is a law in Ontario that every motorist should have auto insurance. Motorists without an auto insurance policy may have their driving license suspended and they could be fined up to about $10,000 for this infraction in legislation. In the worst scenario, drivers could also have their vehicles taken away.
Other than that, if you have ever been convicted of any auto accidents, and apparently had no insurance coverage at the time, some insurance companies would claim you would be a very high risk driver. Some will charge high premiums, while others could possibly refuse insuring you for your auto because you are too dangerous for them. Therefore, the moment you plan to purchase a car, it is suggested that you also think of the price of the auto insurance policy.
Ontario auto insurance requires three basic rules to be met:
A) Drivers in Ontario need to have third party liability insurance; this means that if any death, injury or damage is caused by you, the policy will insure you and cover the required costs.
B) The minimum requirement for liability insurance in Ontario is $200,000; this means that the damage/accident costs should remain within this specific amount. If the damage goes beyond $200,000 then you are responsible for covering the remaining amount.
C) While driving in Ontario, you need to have a valid driver's license and proof of a policy. If any accidents occur, and you are found without these two compulsory documents, you could be fined, arrested or have your vehicle suspended.
Besides these basic rules, you must remember that if you do not follow auto laws in Ontario, your insurance could prove to be void. For example, driving with seats belt on, is a law. If you drive without seats belt on, and face an accident, resulting in injury, your insurance may not pay your medical costs. This is because you failed to follow the policy, you broke the law and therefore the insurance would be void.
Because of this, it is important to find a good agency to give you both rates that are low, and also a lot of insurance coverage. You have to confirm if you are obtaining not only the cheapest premium, but also the very best value, since some bundles can contain different terms and benefits, even from the same provider. It is advisable to conduct an intensive research, remembering the bare minimum coverage prerequisites of your province.
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