Auto Insurance Toronto – Your Top FAQs Answered

Choosing the right auto insurance policy in Toronto and the GTA is an important decision that impacts your finances. The advice is, thus, to consider your choices very wisely. Your financial wellbeing aside, in the province of Ontario, whose jurisdiction Toronto falls under, auto insurance is mandatory for all drivers.

So, both for your benefit in the event of a car crash and to stay on the right side of the law, you need auto insurance. But unless you have education or prior experience in auto insurance, there will be a knowledge gap that limits your ability to make informed decisions. Today we answer the most frequently asked questions about auto insurance in Toronto, Ontario.

Here Are A Few Of The Most Commonly Asked Questions Drivers Asked About Insurance In Toronto

1. What is compulsory auto insurance?

Compulsory auto insurance is that which is mandated by the law. The Financial Services Commission Of Ontario (FSCO), which regulates the insurance industry in Toronto and all of the province of Ontario makes a distinction between mandatory – otherwise known as a standard auto insurance policy – and optional auto insurance.

Mandatory auto insurance is required of all motorists in Ontario. To satisfy the law as a driver in Toronto, your auto insurance policy must include third party liability, accident benefits coverage, uninsured automobile coverage, and direct compensation-property damage coverage. The third-party liability insurance must have coverage of at least $200,000

2. Does the car owner have to be the insurance policyholder?

It is generally accepted that the person who owns a motor vehicle is the one who insures it. For this reason, and others, some insurers only sell auto insurance policies to the person the car is registered to. Generally, though, it is wise to first ask the insurer you’re considering what their underwriting procedures are.

Remember too that under Ontario law, you have to show proof that the vehicle has mandatory insurance coverage before you can register it. That said, as registration in Ontario moves with the owner and not the vehicle, most insurance companies will allow you to transfer ownership to another vehicle.

3. What happens if I get into an accident without auto insurance?

Car accident without auto insurance

For anyone who takes the unwise decision to drive without auto insurance, this is the scenario to avoid. The law states that if you cause an auto accident and do not carry auto insurance you are liable for the damages and have to pay for them out of your pocket. 

Legal action can also be taken against you by anyone who gets injured or suffers loss as a result of the accident. But even without causing an accident, if you are caught driving without standard auto insurance the law imposes a fine of $5,000 and $25,000.

4. How Does an At-Fault Accident Affect Me?

Because you are covered by your auto insurance policy, if you cause an accident your insurer will pay for the damage and associated costs. But that’s not to say your culpability for the accident will not come back to bite you:

Insurers determine your auto insurance premiums on your likelihood to make an accident claim. So if you’re a careless driver and make regular claims as a result, the insurer will increase your premium on your next renewal. Generally, insurers make money by paying out as fewer claims as possible and will reward careful drivers who are less likely to make claims with lower premiums.

5. Where Can I purchase Auto Insurance In Toronto?

If you’re in Toronto, the best place to buy auto insurance is contact the Able Elite Team at Able Insurance, one of Canada’s top insurance brokerages. Fully licensed in Ontario and with a reputation for putting clients’ needs first, we sell auto insurance from Canada’s top insurance companies. The advantage of working with an insurance broker like ours is that we work with multiple insurers so can we give you more options and compare all the plans to give you the best coverage for your personal needs. Contact us here for a quote.

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