For car owners, buying insurance can seem like a headache. But the truth is – accidents happen, even for the most experienced drivers. You can be fully confident in your driving skills, but you never know who’s sitting in the car below or in front of you. That’s why having car insurance is so important.
In Ontario, you are required by law to buy automobile coverage that includes Third Party Liability Coverage, Statutory Accident Benefits Coverage, Direct Compensation – Property Damage Coverage, and Uninsured Automobile Coverage. But is it enough? This article explains how much car insurance coverage you should have in Ontario.
What’s included in the mandatory insurance
As mentioned before, as a car owner in Ontario, buying insurance that includes four major types of coverage is mandatory.
- Third Party Liability Coverage covers you and anyone else who drives with your car in case someone else is bodily injured, killed, or you’ve done property damage.
- Statutory Accident Benefits Coverage helps you if you’ve gotten into an accident, no matter who’s been at fault. You can benefit from medical help, rehabilitation, attendant care, and other advantages.
- Direct Compensation – Property Damage Coverage is crucial because it covers damage to your vehicle or its contents as long as another individual has been proven guilty.
- Uninsured Automobile Coverage is used in case you are hurt or killed by an unidentified vehicle (for instance, in a hit-and-run)
Do you need to buy additional coverage?
The mandatory car insurance protects you only to some extent. Ideally, as a car owner, you should purchase optional coverage or endorsements to get extra protection. At MM Law, we suggest investing in the Family Protection Endorsement. Many insurers and brokers include it within policy without asking because it’s crucial in case you or your family members have been injured due to the negligence of an ‘underinsured’ or unknown driver.
Let’s say you’ve suffered an accident and have lost $300,000 in damages, but the guilty driver only has $100,000 in their TPL coverage. Unfortunately, in this scenario, you’d only be able to get the $100 000. However, if you have Family Protection Endorsement for $500 000, you could collect the rest of the money from your insurance company.
How much car insurance is enough?
Although even $200,000 seems like a lot of money, it gets used quickly in case of a road accident. Insurance professionals now advise having at least $2 million in TPL. It may be tempting to pay the bare minimum when money is tight, but if you ever get into a severe accident, it will easily backfire.
We’re all human, so mistakes and errors do happen. When deciding upon insurance, consider how much it will give you peace of mind. Remember that only you can protect yourself and your family!
If you need assistance figuring out the best coverage for you or need help claiming financial compensation for your losses, get in touch with our team at MM Law! Message us here.