Frequently Asked Questions – Auto Insurance – Coverage
Suppose I lend my car to a friend, is he/she covered under my automobile insurance policy?
Whenever you knowingly loan your car to a friend or an associate, he or she will be covered under your automobile insurance policy provided:
- He or she is qualified by law to drive
- You have given explicit permission for the person to borrow your car (or the person had a reasonable belief that you would have given them permission to drive the car)
Remember, when lending your vehicle, you lend out your insurance record also! If the person you lend your car to gets involved in an accident, it is your policy that will be affected.
Am I covered while driving a car in Europe or Mexico?
No. The Ontario Automobile Policy applies only in the US and Canada. You would need to purchase insurance in Europe or Mexico.
Do I need to buy extra coverage when I rent a car?
Know before you go! You don't want to buy duplicate coverage, especially at the rates that rental companies sometimes charge, but be sure you know exactly what your insurance company does and doesn't cover. For instance some companies cover your rental car, but only if yours was damaged in an accident. Some credit cards will cover your rental, but again with limitations and stipulations.
Contact us to determine if you currently have rental car coverage through OTIP.
My car was damaged by excessive rainfall – it was parked in three feet of water long enough to be completely ruined. Am I covered?
Yes. Flood damage is covered under the comprehensive part of your auto insurance policy, minus your comprehensive deductible.
My car was "totaled" even though it was still driveable. How was this decision reached?
If the cost to repair your car is higher than its book value, an insurance company must "total" your car and pay you for its book value. The book value is determined by the age, options and condition of your car at the time of the accident.
What is the difference between comprehensive and collision coverage?
Collision covers damage to your car from collisions with any object or upset of your vehicle. Comprehensive covers damage from such things as vandalism, theft, fire, flood and storm damage.
If you don't see the answer to your question, please contact us.