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What Is and Is Not Covered by Car Insurance

Car Insurance

Find Out What Your Auto Insurance Really Covers

Orr & Associates is proud to provide auto insurance to drivers in Ontario. Customers often ask what their auto insurance policy covers and what it doesn’t cover. All auto insurance policies must provide coverage mandated by provincial law. Beyond that, you should speak with your broker to ensure that you have enough coverage to meet your needs. We serve clients in Newmarket, Barrie, Aurora, and King City, and the surrounding areas.

What Is Covered by Auto Insurance?

Coverage represents how much an insurance company pays on a covered loss. All drivers in Ontario are required by law to have auto insurance, under penalty of a stiff fine of $5,000-$50,000. So, your coverage will include the following policies, no matter which insurance provider you choose:

  • Liability
  • Direct Compensation-Property Damage
  • Accident Benefits
  • Uninsured Automobile

Liability Insurance

Liability insurance helps pay for damages related to injury or death to a third party if you cause the accident. It also pays for damage to other vehicles. In case the settlement exceeds your liability limit, you’ll need to pay the rest out of pocket. Keep in mind that your own vehicle is not covered by liability insurance. Your insurance agent can help you understand the best coverage for your driving style and habits.

Get a free quote for auto insurance today!

Accident Benefits/Bodily Injury Insurance

This insurance covers your medical expenses in a car accident.

Additional Insurance Coverage

Consider what other car insurance coverage you need, starting with the following:

  • Collision insurance: If you hit another car, collision insurance covers repairs or replacement costs.
  • Comprehensive insurance: This coverage pays for damages due to:
  • Vandalism
  • Theft
  • Windshield damage

Also consider whether you need to add coverage for the following:

  • Rental cars
  • Roadside assistance
  • Collision forgiveness for your first at-fault accident
  • Depreciation (get back the full amount you paid for your car)

There are a number of ways to beef up your insurance coverage if you feel like your risks exceed your current coverage. If you would like us to review your current coverage, we would be happy to do so.

Find out whether you can save money by bundling your car insurance with other coverage types.

What Is Not Covered by Auto Insurance?

As discussed, every policy has its own language regarding the events it covers. However, there are some things most auto insurance will not cover, including:

  • Wear and tear
  • Rusting
  • Explosions
  • Mechanical failure
  • Freezing

If one of these events causes an accident, your insurance may not pay for it. However, the best way to understand your individual coverage is by meeting with your broker.

Keep in mind that your insurance company may deny claims if you or an authorized driver lost control of the vehicle due to drinking alcohol or using drugs. The same applies if you receive a conviction for Criminal Code offences, such as:

  • Causing death or injury due to criminal negligence
  • Fleeing the scene of an accident
  • Refusal to give a breath sample
  • Caused accident while impaired (e.g. 80 mg/100ml of alcohol in your bloodstream)
  • Driving with a revoked license
  • Vehicle is used to carry explosives
  • Vehicle is a bus, taxicab or carrying paying passengers (Ask about separate coverage for this usage.)

Additionally, most car insurance policies won’t reimburse you for damaged personal possessions.

At Orr & Associates, we only choose reliable, reputable insurance companies in Canada to handle your auto insurance coverage. Come to us for coverage in Barrie, King City, Newmarket, or Aurora, ON. Feel free to call 1 (866) 521 5926 with your questions. You can also fill out our online form.