Fortunately, the pandemic is almost over, most people are vaccinated, businesses are up and running, and everything is moving towards being normal.
Contents
Full Review of Car Insurance in Canada + Costs for 2022
Good news for drivers of Canada insurance rates remains stable.
Introduction to Canadian Auto Insurance
The first thing you need to know as a driver is that car insurance is mandatory in Canada. The mandatory coverages heavily depend on the insurance system in the province you live in. Let’s see some examples for better comprehension:
British Columbia, Saskatchewan, and Manitoba has public insurance systems which means you should buy car insurance from the government.
On the flip side, Ontario, Alberta, and Atlantic Canada has private insurance systems. This means private companies offer policies and that’s why comparing quotes online is a very effective way to find a suitable policy with a reasonable price.
Every province in Canada declared some insurance coverages a requirement, some three or four and some more. You can also customize your policy add some additional coverages you think you will need.
How Much is Car Insurance in Toronto ?
Mandatory coverages in Ontario
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Third Party Liability Coverage:
In case of damage to somebody else or their car or property, it covers you financially up to $200,000, but most people default to $100,000.
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Uninsured Automobile Insurance:
This coverage was for when you had an accident and the other driver didn’t have insurance. Your own insurance company will cover you.
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Statutory Accident Benefits Coverage:
It covers the medical expenses due to the accident you and anyone else that has been injured in an accident and if you are unable to work because your insurer pays you.
Note: This coverage can be
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Direct Compensation – Property Damage (DC-PD) Insurance:
This coverage means you only have to deal with your own insurance company regardless of who is at fault for the collision.
How Auto Insurance is Calculated in Ontario
First of all, as an Ontario resident, you should know that Ontario has a no-fault insurance system. It means that if a collision accord, regardless of who is at fault, both drivers deal with their own insurance companies.
Ontario has a private insurance system. These private insurance companies are regulated by the Financial Services Regulatory Authority of Ontario (FSRAO).
Some Common Additional Coverage Among Canadians
- Comprehensive car insurance
- Collision insurance
- Specified perils
- All perils
Top 10 Car Insurance Companies in Canada
There are also Optional Policy Change Forms (OPCF). Here are the three most common ones:
- OPCF 20 – If your car is damaged and being repaired or replaced, it covers the costs of a rental car.
- OPCF 27 – It ports your current insurance to a rental car or the car you borrow.
- OPCF 43 – In case of settling a claim, it removes depreciation in calculating the value of your car.
What is the average amount of insurance cost in Ontario?
Mentioned, you have to have car insurance to be on the road in Canada for your protection and the protection of others. The average cost of auto insurance in Ontario is $1528 per year, but this can change.
Insurance expenses heavily depend on factors like age, driving record, car model, location, etc.
Ontario is the most populous province in Canada and has the second most expensive car insurance. But don’t worry, there are ways that you can lower your insurance costs.
One of the most effective ways is to shop around, get in touch with a broker if you can’t do it yourself and find a suitable policy with a reasonable price.
What happened to the insurance rates in 2021?
Luckily the rates haven’t changed since 2020, but some companies did lower their rates a little.
