Car Insurance
Merit will customize an Ontario car insurance policy to protect you and your vehicle, with affordable rates and deductible options to match your needs.
What Car Insurance is Required in Ontario?
If you are an Ontario driver, you’re required by law to have the basic auto insurance coverages: Liability, Accident Benefits, Uninsured Motorist, and Direct Compensation – Property Damage.
Liability
Liability coverage for you or other insured persons if someone else is killed or injured or their property is damaged in an automobile accident. It will pay for legitimate claims against you or the other insured persons up to the limit of your coverage, and the cost of settling claims.
Accident Benefits
Provides benefits that you and other insured persons may be entitled to receive if injured to killed in an automobile accident. These benefits include:
- income replacement for persons who have lost income;
- payments to non-earners who suffer complete inability to carry on a normal life;
- payment of care expenses to persons who cannot continue to act as a primary caregiver for a member of their household;
- payment of medical, rehabilitation, and attendant care expenses;
- payment of certain other expenses;
- payment of funeral expenses;
- and payments to survivors of a person who is killed.
You may also purchase optional benefits to increase the standard level of benefits provided in your policy.
The optional benefits your insurance company must offer are:
Increased Income Replacement – The standard level of income replacement provided in the policy ($400 per week maximum) may be increased by purchasing optional coverage so that the weekly limit is up to $600, $800, or $1,000. All income replacement benefits are based on 70% of your gross weekly income.
Increased Medical, Rehabilitation, and Attendant Care – The standard benefit pays up to $65,000 for medical, rehabilitation, and attendant care expenses with a 5-year time limit in most cases. If catastrophically impaired, the standard benefit pays up to $1,000,000 for medical, rehabilitation, and attendant care expenses. You may purchase an optional medical, rehabilitation, and attendant care benefit of $130,000 or $1,000,000.
Additional Catastrophic Impairment – You may purchase an optional catastrophic impairment benefit of an additional $1,000,000 added to the standard medical, rehabilitation, and attendant care benefit or the optional increased medical, rehabilitation, and attendant care benefit.
Caregiver Benefit, Housekeeping, and Home Maintenance Expenses – The standard benefit for caregiver benefit, housekeeping, and home maintenance expenses is available only for a person who is catastrophically impaired. You may purchase an optional benefit to provide these coverages for other impairments.
Death and Funeral – The standard level of death benefits paid to the surviving spouse and dependant of a person who is killed ($25,000 to a surviving spouse and $10,000 to each surviving dependant) may be doubled by purchasing this optional coverage. This coverage also increases the standard funeral expense benefit from $6,000 to $8,000.
Dependant Care – There is no standard dependant care benefit. You may purchase an optional benefit to receive weekly dependant care expenses of $75 for the first dependant, and $25 for each additional dependant, up to $150 per week, for employed persons not receiving a weekly caregiver benefit.
Indexation Benefit – This optional coverage will ensure that certain weekly benefit payments and monetary limits will be adjusted on an annual basis to reflect changes in the cost of living.
If your income is over $30,000, consider increasing your Income Replacement Benefit.
Uninsured Automobile
This coverage provides benefits to you or other insured persons that are injured or killed by an uninsured motorist or unidentified (hit-and-run) driver. It also covers damages to your automobile if caused by an unidentified, uninsured motorist, subject to a $300 deductible.
Direct Compensation – Property Damage
Provides coverage in Ontario, under certain conditions, for damage to your automobile and to property, it is carrying, when another motorist is responsible. It is called Direct Compensation because you will collect from us, your insurance company, even though you are not at fault for the accident. There may be a deductible amount, and this amount is either paid by you toward the cost of repairs or is deducted from the loss settlement. Higher deductibles may reduce your premium.
Loss or Damage
Provides a selection of optional coverages for your own automobile. Payments cover direct and accidental loss of, or damage to, a described automobile and its equipment. There is usually a deductible amount indicated for each coverage and this amount is either paid by you toward the cost of repairs or is deducted from the loss settlement. Higher deductibles may reduce your premium. There are four types of coverages:
- Specified Perils: Covers the described automobile against loss or damage caused by certain specific perils. They are fire; theft or attempted theft; lightning, windstorm, hail or rising water; earthquake; explosion; riot or civil disturbance; falling or forced landing of aircraft or parts of aircraft; or the stranding, sinking, burning, derailment or collision of any kind of transport in, or upon which, the described automobile is being transported.
- Comprehensive: Covers a described automobile against loss or damage other than those covered by Collision or Upset, including perils listed under Specified Perils, falling or flying objects, missiles, and vandalism.
- Collision or Upset: Covers damage when a described automobile is involved in a collision with another object or tips over.
- All Perils: Combines the Collision or Upset and Comprehensive coverages
How to Save on Car Insurance?
Ask you Merit broker about bundling your costs to take advantage of the following discounts:
- Increased deductible
- Loyalty discounts
- Multi-policy discounts
- Multi-vehicle discounts
- Winter tire discounts
- Conviction Free discounts
Click here to get a Car Insurance quote or contact Merit Insurance Brokers to learn more.
FREQUENTLY ASKED QUESTIONS
What is Comprehensive Coverage?
“Comprehensive coverage only” for auto insurance provides protection against non-collision-related damages to your vehicle, such as theft, vandalism, fire, natural disasters, and animal collisions.
What is the TAG program?
TAG is a comprehensive vehicle anti-theft program initiated by the Ontario government to reduce vehicle thefts across the province. Trained technicians install multiple, difficult-to-locate tracking devices throughout a vehicle. In the event of a theft, these devices can be tracked at anytime, anywhere in North America.
How does TAG help protect vehicles?
The TAG program protects vehicles in two main ways. First, it acts as a deterrent by placing small etchings on the front driver and passenger side windows to indicate that the vehicle is TAG-protected. Second, it aids in recovery by installing small, hard-to-detect wireless tracking devices throughout the vehicle, which help locate and recover it if necessary.
What happens if my vehicle is stolen?
Within minutes, the Tag tracking team will be dispatched. They are on call 24/7, 365 days a year. Once they locate your vehicle, they will remain there until the police arrive.
Is TAG mandatory for all vehicles in Ontario?
No, participation in TAG is voluntary. However, vehicles not equipped with anti-theft systems or those frequently targeted by thieves are encouraged to participate for added protection.
What should I do if my TAG decal is damaged or lost?
If your TAG decal becomes damaged or lost, you can request a replacement decal through the TAG program’s official channels. Proper documentation may be required.
Does TAG affect my vehicle insurance premiums?
Participation in TAG may qualify you for potential discounts on vehicle insurance premiums from participating insurers. Check with your insurance broker for details.
What happens if I sell my vehicle with TAG installed?
When you sell your vehicle, TAG remains installed. However, it’s important to transfer TAG ownership to the new owner. If ownership isn’t transferred, TAG continues to operate, but access to data requires a police warrant.
Will installing TAG void my vehicle warranty?
No, installing TAG does not affect your vehicle’s warranty or leasing contract. TAG’s installation is non-intrusive and wireless, posing no risk to your vehicle’s electrical system or functionality.
I lease my vehicle; can I still install TAG?
Yes, TAG installation does not interfere with leasing contracts. The system is completely wireless and does not impact your vehicle’s operation. Dealerships generally have no concerns when leased vehicles are returned with TAG installed.
What if I don’t have time to get TAG installed?
TAG installation typically takes only one hour, which is significantly less time and effort compared to replacing your vehicle. It’s a simple process that can provide added security without significant inconvenience.
Do I need to renew or update TAG annually?
No, once TAG is installed and registered, there is no annual renewal or update required. The system operates continuously as long as the vehicle remains registered in the TAG database.
What does the TAG installation package include?
The TAG installation package covers installation and monitoring fees for a 7-year period.
Does a vehicle’s model and geographical location impact a vehicle’s assessment as being high risk?
Yes, both the vehicle’s model and geographical location can impact its assessment as high risk for theft. Certain vehicle models and urban areas with higher theft rates are more likely to be considered high risk by insurers.
What if my model is deemed high risk?
If one or more of your vehicles under your policy is considered a high risk for theft, an additional $500 High Theft Risk premium will be applied to those vehicle(s) upon renewal if you do not have a TAG system installed. With the installation of TAG, this additional premium will be removed and you may be eligible to receive a discount.
Does my car insurance cover other drivers?
Your car insurance will cover other drivers provided you have given them permission to drive your vehicle, they are not excluded as a driver on the policy and they have a valid driver’s licence. When you lend your vehicle, you lend your insurance. Any accidents will be on your driving record.
Can I get car insurance if I don’t own a car?
If you have a long-term lease, over 30 days, you can purchase insurance for the vehicle. If you do not own or lease a vehicle you cannot purchase car insurance, but you can purchase a Driver’s Policy. A Driver’s policy covers non-owned autos. If you regularly rent or borrow a vehicle or even use car sharing (such as Zipcar), a Driver’s policy may be right for you. It is illegal to drive without a valid automobile insurance policy, so if you are borrowing a friend’s car to run errands or rent cars for your yearly ‘staycation’, it is important that you are carrying an insurance policy with liability coverage. To protect yourself in case of an at-fault accident, having a Driver’s policy in Ontario can prevent you from paying out of pocket for possible injuries or property damage. Your friend’s insurance policy will cover you while you’re operating their vehicle. However, a Driver’s policy will cover any damages that exceed what their insurance policy covers if you get into an accident with their car.
Do I need different insurance for other types of vehicles?
The Ontario Automobile policy is a Standard Policy which provides the same coverage whether you are insuring an automobile, a motorcycle or an ATV or snowmobile. All policies have Standard Accident Benefits limits with Optional Increase Benefits available, you should reviewed you Accident Benefits limits with your broker annually so that any life changes can be considered when determining the appropriate coverage for you on your automobile insurance policy.
Does car insurance cover rental cars?
The Standard Auto Policy offers coverage for rental vehicles in the event of not-at-fault losses and after 72 hours of total theft of vehicle. For at fault, hit and run, or vehicle vandalized rental coverage is not included and must be purchased separately. When purchasing separate coverage, a limit should be chosen that would put you back in the same type of vehicle you currently drive. Discuss your options with your Merit Broker.
Does my vehicle affect my car insurance rates?
Insurance companies use a many variables to determine the premium. The vehicle you are driving is used as one of these variables. They also look at year and model as well as the length of time you own the vehicle. Colour is not a rating variable.
What car insurance discounts are available?
There are many discounts that are available. The most common are Multi-vehicle discount, Conviction Free Discount, Home & Auto Discount, Snow Tire Discount.
What does car insurance cover?
In Ontario, car insurance is mandatory and typically covers third-party liability, accident benefits, uninsured automobile coverage, and direct compensation-property damage. Third-party liability covers damages you are legally responsible for causing to others, while accident benefits cover medical expenses and lost income resulting from a car accident. Uninsured automobile coverage provides protection if you are in an accident with an uninsured driver, and direct compensation-property damage covers damages to your vehicle caused by someone else. Optional coverages such as collision and comprehensive may also be available.
How much car insurance do I need?
Depending on the age and/or value of your vehicle you may wish to purchase full coverage or just basic coverage. (refer to above question on the basic coverage).
Does my car insurance cover me outside of Ontario?
Ontario Automobile policy covers you and other insured persons for incidents occurring in Canada, the United States of America and any other jurisdiction designated in the Statutory Accident Benefits Schedule, and on a vessel travelling between ports of those countries. All of the dollar limits described in the policy are in Canadian Funds.
What if I have a DUI can I get insurance?
Yes, you can still get car insurance in Ontario if you have a DUI conviction provided you have a valid licence, no coverage if licence is suspended. However, your premiums will likely be significantly higher than they would be if you had a clean driving record. In Ontario, a DUI conviction stays on your driving record for at least 3 years. Our Merit brokers have the ability to shop around and compare quotes from different insurance providers to find the best coverage and rates for your situation.
Is the value of my car affected if someone hits it?
Yes, the value of your car can be affected if someone hits it. Even if the damage is repaired, the car may still have a history of being in an accident, which can lower its resale value. The extent of the damage and how well it was repaired will also affect the value. It is important to keep proper documentation of any repairs made to the car and to disclose any accident history to potential buyers when selling the car.
Is the limit of coverage on rental vehicles enough?
In the event that vehicle is damaged and in for repairs, if vehicle replacement coverage has been purchased, it covers the cost of the rental vehicle. This endorsement is available with different limits. You are entitled to rent a vehicle with similar features should your vehicle be in for repairs. The time to have vehicles repaired has increased and is now taking much longer than in the past due to shortage of parts or labour. If your replacement vehicle limit is to low, you may be on the hook for the added cost to continue renting a vehicle while you wait for repairs. We recommend increasing the basic replacement cost limit to a higher limit so you are not out of pocket if your vehicle takes longer than expected to be repaired. Cost to increase this limit is minimal and you should speak with your broker.
Can a listed driver drive other vehicles on the policy other than the one assigned?
Any listed driver on a policy can drive any other vehicle on the policy unless they have been specifically excluded from a vehicle.
How much is cancellation penalty fee?
If you cancel your policy prior to the expiry date, a cancellation fee is applied to the unearned premium. This fee moves on a sliding scale based on the number of days the policy term has been active. Rule of thumb, cancellation fee usually works out to be approximately the equivalent to one month’s premium.
What impact does a using hand held device conviction do to my rates?
Convictions for using hand held device is now considered a Serious Conviction and will result in a Surcharge on your insurance premium. It is treated similar to an Impaired Driving conviction.
What is a deductible?
A deductible is the amount of money an insurance policyholder must pay out-of-pocket before their insurance coverage begins to pay for a covered loss. For example, if an insurance policy has a $500 deductible and a claim is made for $5,000, the policyholder must pay $500 first, and then the insurance company will pay the remaining $4,500. Higher deductibles usually result in lower insurance premiums, as the policyholder is assuming more of the risk.
What does no fault mean for car insurance?
“No-fault” insurance in Ontario means that regardless of who is at fault in a car accident, each person’s own insurance company pays for their own damages and injuries, up to their policy limits. This system was put in place to reduce the time and cost associated with determining fault in accidents, and to ensure that injured parties receive compensation quickly. However, it’s important to note that in cases where serious injury or death occur, fault may still be determined and legal action may be taken.
Does my car insurance cover other peoples cars?
No your car insurance does not cover other peoples’ cars. As per above explanation of “no-fault”, each driver would go to their own insurance company for the damages to their vehicle.
Does car insurance cover a collision with an animal?
Car insurance in Ontario typically covers collisions with animals as part of the comprehensive coverage. However, it’s important to check your specific insurance policy to confirm what is covered and what the deductible amount is. Some policies may also have specific exclusions or limitations related to animal collisions, so it’s important to review your policy and ask your insurance provider any questions you may have.
Can I let other people drive my car?
As long as they have your permission and a valid license they are covered. When you lend your vehicle you lend your insurance. Note: if they have an accident with your car, that accident becomes yours. All regular or frequent drivers and all other licensed drivers in the household should be listed on the policy as a driver.
Can a listed driver drive any vehicle on the policy?
With the owner’s permission, all licensed drivers can drive any vehicles listed on the policy.
What does Endorsement OPCF 27 coverage?
This endorsement covers Legal Liability for Non-owned Automobiles. If you carry physical damage coverage on your vehicle and you rent a vehicle, this coverage extends coverage to rental or non-own vehicles for you, your spouse, and all listed drivers.
Why do we need to increase our Accident Benefits limits?
Bodily injuries resulting from accidents can take a long time and expensive to recover. Automobile policy has minimal Medical Rehabilitation and Attendant Care coverage. Increased limits are available. Optional Accident Benefits coverage increases the Standard Limits.
What is Caregiver, Housekeeping and Home Maintenance coverage?
In the event of an accident, if you are unable to take care of the daily household duties, this coverage will hire someone to take care of these duties. Currently, this coverage is only available if you are classified as catastrophically impaired after a motor vehicle accident, but if you have minor injuries, but severe enough that you cannot complete your daily household chores, then purchasing All Impairments will reimburse someone hired to complete these chores. This increased coverage is highly recommended for anyone who lives on their own.
I have my own group health insurance, why do I need the Accident benefits coverage on my car insurance?
This coverage is mandatory in the province of Ontario. You do not need to apply for the Optional Coverages if you have your own Group Health Insurance. However, we recommend you check your own Group Health Plan to make sure it will cover you for expenses due to injury from a car accident and includes all family members living in your household and insured under this policy.
My Child obtained their G1. Can I add them to my policy?
Most insurance companies will not show a driver with the G1 only. They are included under the insurance policy when they are driving with you. If an accident occurs, your policy will respond like it was you driving. Once they obtain their G2 they need to be added to the policy as a driver and start their own driving record. Discounts are offered for new drivers who complete an Approved Driving Course.
How to add a new driver, what documents are required?
Copy of driver license/Driver license history abstract if newly licensed. Driving experience history if the information is available. All regular or frequent drivers of the vehicle and all licensed drivers in the household are to be shown on the policy.
If someone hits my car, do I contact their insurance company?
No – regardless of fault, you will put a claim in through your own insurance company. Depending on what % you are at fault, is the % of your deductible that you pay. IE if you are 0% at fault and the third party has insurance, you will pay 0% of your deductible.
How long do tickets and accidents count for?
Tickets – Motor Vehicle Tickets stay on your record for 3 years from the date you Pay it. When a driver’s license has been suspended for 12 months or more due to convictions or an accumulation of demerit points within the last 3 years, the driving record will revert to zero when the license is reinstated and you have to regain your driving record over the years.
Accidents – Most companies will rate an at-fault accident for 6 years, however, some will count them up to 9 years.
Business use of a vehicle – are deliveries allowed under a private passenger auto policy? Or decals and branding?
No, it needs to be rated as a commercial auto. The allowable Business Use under a Personal auto is meant more for going to/from client meetings, for example, salesperson, realtor, accountant, etc. If you are carrying or delivering product and materials vehicle needs to be rated for Commercial Use. It is important to disclose the proper use of the vehicle to obtain the correct rating. Failure to disclose the proper use of the vehicle may result in denial of coverage and cancellation of the policy.
What If I do Uber, Uber Eats or Skip the Dishes?
Your policy must be amended to show that vehicle is being used for business or commercial use. You can be denied coverage and policy canceled if vehicle’s proper use is not disclosed to the insurance company.
Toronto Office
111 Gordon Baker Rd. Ste 100
North York, ON M2H 3R1
Tel: (416) 497-5556
Fax: (416) 497-9212
Toll Free: 1 (800) 563-3383
welcome@merit-insurance.com
Waterdown Office
20 Main St. N, Unit 7, P.O. Box 879
Waterdown, ON L0R 2H0
Tel: (905) 690-6888
Fax: (905) 690-4229
Toll Free: 1 (800) 563-3383
welcome@merit-insurance.com