Understanding auto insurance doesn't have to be complicated. Learn how Ontario's system works, what coverges are mandatory, and which optional protections can better safeguard you, your passengers, and your finances.
There are many places to buy car insurance, but not all will take the time to understand what's right for you. The lowest price isn't always better-your coverage needs to respond the way you expect when it counts.
At L.D. Dermody Insurance Brokers (1982) Inc., we make your options clear and help arrange a policy with the right balance between coverage and cost-plus flexibility for life's changes such as claims or tickets.
Ontario operates under a No‑Fault system. In most collisions you deal directly with your own insurer, regardless of who caused the accident. This is intended to speed up claims and reduce disputes between companies.
Legal action against another party is only permitted when certain thresholds are exceeded-for example, serious and permanent impairment, serious disfigurement, death, or when specific monetary thresholds are met. Fault is still assessed under Ontario's Fault Determination Rules, which guides how coverages apply and whether premiums are adjusted.
Back to topProtects you if you're legally responsible for injuries or property damage to others. Coverage applies up to the liability limit you purchase.
Covers damage to your vehicle and contents when another driver is at fault. You claim with your own insurer under DCPD.
Provides medical, rehabilitation, income replacement, death, and funeral benefits, regardless of fault.
Protects you if you're injured or your car is damaged by an uninsured or hit‑and‑run driver (subject to deductible).
Back to topAlthough the legal minimum liability limit is $200,000, this is generally not sufficient. Serious injury awards often exceed $1,000,000 and can take years to settle. To better protect your assets and future income, we recommend purchasing at least $2,000,000 in liability-higher limits are available and often advisable.
Provides coverage for accidental loss or damage to your vehicle, subject to the options selected. Note: Physical Damage is typically optional when the car is not leased or financed.
Covers at‑fault losses when your vehicle collides with another object or tips over-including other vehicles, the ground surface, and objects in/on the ground. Also covers damage from hit‑and‑run incidents by unidentified drivers.
Covers losses other than collision, such as falling or flying objects, vandalism, fire, theft, lightning, explosion, and similar perils.
The broadest form of physical damage coverage, combining Collision and Comprehensive and adding theft by a household member or employee.
Helps pay for transportation (e.g., rental car, rideshare) when your vehicle is out of use due to an insured loss.
Extends coverage in Canada and the U.S. for damage to eligible rental vehicles. Often eliminates the need to buy the rental agency's physical damage waiver.
Waives depreciation on a new vehicle within the first 24 months (conditions apply), typically settling at the lesser of your purchase price (including attached equipment) or MSRP at the original purchase date.
Protects you and eligible family members if an at‑fault driver has lower liability limits than yours. It can top up the at‑fault driver's policy up to your own liability limit.
Deductible: the amount you agree to pay per claim toward an insured loss. Higher deductibles usually mean lower premiums. Example: moving from a $500 to a $1,000 collision deductible may reduce that portion of the premium by ~5% (varies by insurer).
| Coverage | Typical Deductible (example) | Notes |
|---|---|---|
| DCPD | $0 / $500 | Varies by insurer; may be optional. |
| Collision / Upset | $500 / $1,000 | Higher deductible lowers premium. |
| Comprehensive | $300 / $500 | Often lower than collision. |
| All Perils | $500 / $1,000 | Broadest physical damage form. |
Ontario applies a statutory deductible to certain non‑pecuniary damages awards (pain and suffering). As of January 1, 2019 these amounts were $38,818.97 (general) and $19,409.49 (Family Law Act s.61(2)(e)), indexed annually; monetary thresholds were $129,395.49 and $64,697 respectively (also indexed). (Figures are provided for context; current indexed amounts vary by year.)
There is an optional coverage available that can reduce the deductible by $10,000.
Standard death benefits ($25,000 to surviving spouse; $10,000 to each dependant) and funeral benefit ($6,000) can be increased-for example doubling death benefits and raising funeral to $8,000.
Standard income replacement is up to $400/week (70% of gross). You can increase the weekly maximum to $600, $800, or $1,000 (eligibility and underwriting apply).
Standard non‑catastrophic limit is up to $65,000. You can increase to $130,000 or $1,000,000 (the $1M option can apply across all injuries). For catastrophic impairment, the standard combined limit is up to $1,000,000; you can increase to $2,000,000.
Standard coverage applies only for catastrophic impairment. Optional coverage can extend these benefits to all injuries.
No standard coverage. Optional benefit provides $75/week plus $25 for each additional dependant, up to $150/week (conditions apply).
Standard: up to $100/week for catastrophic injuries only. Optional coverage can extend to non‑catastrophic injuries.
Annually increases certain weekly benefits and monetary limits in line with the Canadian Consumer Price Index.
Accuracy matters: be complete and truthful, and notify us of any changes. Non‑disclosure or misrepresentation could void coverage at claim time and affect future rates or insurability.
Insurance in Ontario may only be sold by a licensed broker, agent, or insurer.
Premiums vary widely by company. As your broker, we compare multiple insurers to match competitive pricing with suitable coverage.
Price comparisons must reflect comparable deductibles, limits, and optional coverages. We explain differences and how they affect your protection.
The cheapest policy isn't always the best value. We advocate for you at claim time and help ensure your policy responds as expected.
Our family has been helping Ontario clients since 1982. Let us help you too.
