Everything you need to know about car insurance in Ontario

Auto insurance can sometimes feel like deciphering a secret code, especially regarding car insurance in Canada.

There is no shortage of questions when it comes to insurance. Luckily, we are answering some of the most frequently asked ones regarding auto insurance.

This guide will help you understand your coverage whether you're a seasoned driver or a new vehicle owner.

What type of car insurance do I need? 

In Canada, all drivers must have accident benefits and third-party liability insurance.

Accident benefit insurance can help provide coverage for lost income and medical treatment to help with injuries. Third-party liability insurance covers damages to the other driver involved in the accident, their vehicle, any property damaged and any legal costs. These two types of insurance are mandatory. However, there are optional coverages you can add to your policy.

Comprehensive coverage is one of the additional coverage options you can select.

Comprehensive coverage provides extra protection if your vehicle is damaged through a break-in, flood, water, fire, or vandalism.

Collision coverage is another highly recommended additional coverage. Collision coverage helps pay for damage to your vehicle caused by another vehicle, object or an upset. For example, it covers if you hit a tree or have a rollover.

Finally, you can also get accident forgiveness coverage.

What if I don't drive a lot or very far?

Do you only drive occasionally? Do you drive less than 12,000 km a year?

If this sounds like you, you should check out CAA My Pace®¹. This unique auto insurance payment program allows low-mileage drivers to save on auto insurance. With this policy, you pay your base rate for coverage while the car is not being driven and then pay 1,000km increments for the distance you plan to travel.

Does owning vs leasing a vehicle affect car insurance rates?  

Your insurance rate is not affected by whether you lease or purchase your vehicle.

However, if you decide to lease a new car, full comprehensive and collision coverage is required by the lessor.

Are there any ways I can save on insurance?

Industry-wide, there are a few ways you can save on car insurance. For example, if you are retired, you can save 10% on CAA  Insurance². 

If you’re not quite ready to retire yet and have two or more vehicles insured, you should ensure they are on the same policy, as you can save 15% with CAA Insurance. Additionally, CAA Members save up to 20% on CAA Auto Insurance³.

Can I be rewarded for good driving?

Yes, some insurance carriers will reward you for good driving. For example, CAA Insurance rewards you for good driving with CAA Connect⁴.

Signing up for CAA Connect grants you immediate access to great deals and savings. You’ll save 5% right away, and after a year, you may qualify for up to a 15% discount based on your good driving habits.

Does having tickets affect my insurance?

A ticket will be on record for three years for a driver when it is paid, the driver admits guilt, or the driver is found guilty in court. Tickets include violations like speeding tickets and driving under the influence. Having violations on your driving record can result in higher premiums.

Can I lend my vehicle to a friend?

Yes, if you allow your friend to borrow your car, you also lend your car insurance.

If your vehicle is involved in a collision or upset, your insurance coverage will pay for any damages. If you are at fault for the incident, it could affect your policy premium.

Will my first accident affect my insurance?

You can help protect your driving record with CAA Insurance's Forgive and Forget®. If you are involved in your first at-fault accident, there will be no change in your rate and driving record with this coverage.

What happens if I hit a parked car?

When you are driving, and you hit a parked car, you should first attempt to locate the car's owner.

If you can't find the owner, you must leave a note on the car informing them of your full name and address, driver's license number and license plate information.

Should I admit responsibility if I am in a car accident?  

No, if you are in a car accident, you should tell your insurance company and let them review what happened before admitting responsibility.

Am I covered if I am the victim of a hit-and-run?  

As a hit-and-run victim and when you cannot identify the driver, your policy's collision coverage will pay your claim. However, if you do not have collision coverage, you may have to pay for the damages to your car out of pocket.

Upon identifying the hit-and-run driver, report it to a collision reporting centre and your insurance company. On the condition that the driver has insurance, their policy will pay for the damages.

But rest assured, your insurance rates will not increase because you are involved in a hit-and-run.

How do I submit a claim?

With CAA Auto Insurance, you have the option of using the online claims portal or speaking to an agent at 1-877-222-1717.

How do I get insurance?

Getting car insurance is essential for protecting yourself and your vehicle while on the road.

To get a quote or learn more about CAA Auto Insurance you can speak to an agent at 1-888-545-7254 or receive an online quote. Ensure you have your vehicle details handy for a quick and accurate quote!

More questions?

If you still have unanswered auto insurance questions, check out the CAA Insurance Guidebook.

1 Vehicle compatibility and enrolment in CAA MyPace® payment program is subject to terms and conditions.

2 Auto Insurance is underwritten by CAA Insurance Company. Certain conditions, exclusions and underwriting eligibility rules apply.

3 To qualify for the discount you must be a current CAA Member in good standing (CAA Membership dues paid in full by membership expiry date). The Everyday Members save 5% (all the other memberships save up to 20%). Underwriting eligibility rules apply.

4 CAA Connect® is a trademark of the Canadian Automobile Association. Maximum discount while enrolled in the CAA Connect program is 15% on renewal after one year. Vehicle compatibility and enrollment in CAA Connect are subject to terms and conditions.

® Forgive and Forget is a registered trademark owned by CAA Insurance Company.

®/™ CAA trademarks are owned by, and use is authorized by, the Canadian Automobile Association.