In Ontario every driver is required to purchase an insurance policy that includes Liability coverage and Accident Benefits. This is to ensure you are prepared for any situation resulting from a collision. Regardless of who’s at fault, you can have peace of mind the coverage you or your family may need is there in the event of a car accident.

Here’s a quick reference guide about baseline car insurance - we’ve included everything you need to know about what’s included in your mandatory coverages.

What are Accident Benefits?
Accident Benefits help cover the costs associated with the injury or death of a driver, passenger or pedestrian involved in a car accident. If you are hurt in a collision, the Accidents Benefits outlined in your car insurance policy will provide coverage (up to the limit provided) to help you recover from your injuries, or to support your family in the event of your death. Your coverage will extend to anyone else listed on your policy — such as your spouse or children — and, in some cases, to your passengers or the pedestrians injured in the accident. This also applies to un-insured passengers in your vehicle in the event of a collision, as well as any pedestrian injured in the accident.

Depending on what province you are from, additional coverage may differ. In Ontario, Accident Benefits cover the cost of:

• Medical rehabilitation not already covered by public healthcare

• Compensation for lost wages if you’re unable to work as a result of your injuries

• Funeral expense support for your family in the event of your death

• Compensation for your spouse and dependents in the event of your death

 Under Ontario’s Statutory Accident Benefits Schedule (SABS), you are entitled up to $3,500 for minor injuries, $65,000 for non-catastrophic injuries, and $1,000,000 for catastrophic injuries.^2,3

How does Liability Coverage work?
Liability insurance covers injury, property damage and death in situations where your vehicle causes damage to people or other vehicles.¹ By law you are required to carry a minimum of $200,000 in liability coverage. If the damage caused by your vehicle exceeds your liability limit, it is necessary that you pay the remaining balance of your settlement. ³

Can I increase my coverage?
Depending on your situation, you may want to consider some enhanced options to your Accident Benefits and Liability Insurance coverage. (Increasing accident benefit limits and having at least $2,000,000 for legal liability is our recommendation).

Liability Insurance coverage is legally required at a minimum of $200,000, with the ability to increase from the minimum to a maximum of $2,000,000. (However, at OTIP, our standard is for brokers to provide at least $1,000,000 for legal liability. We can also review with our insured’s and their insurance provider to see if additional liability above $2,000,000 can be applied upon request).

In terms of Accident Benefits, there are many ways you can enhance your coverage with choices to increase benefits received from Income Replacement, Caregiver Benefits, Death and Funeral Expenses and other additional expenses. For example: with basic Income Replacement coverage you would receive up to $400 a week with the option to increase your coverage up to $1,000 a week based off your total income range. In addition, you can increase coverage on non-catastrophic injuries up to $130,000, and catastrophic injuries up to $2,000,000.

It’s important to talk to your insurance provider to ensure you have the coverage you need. If you have questions about your existing car insurance policy, contact your OTIP broker at 1-833-494-0089. If you’d like to get a quote for car insurance, connect with an OTIP broker today at 1-833-615-9326.

1. Car insurance – Financial Consumer Agency of Canada (Government of Canada)

2. Statutory Accident Benefits Schedule (SABS) – Government of Ontario

3. Ontario Automobile Policy, Section 3, Page 18 – Government of Ontario