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.
Ontario Auto Insurance Changes Coming July 2026👉 What you need to do before your next renewal
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's auto insurance system changed on July 1, 2026. Several accident benefits that were previously included with every policy are now optional coverages.
This gives drivers more flexibility to customize their insurance, but it also means that important protections may not be included unless they are specifically selected.
Reviewing your coverage is more important than ever to ensure you and your family have the protection you need in the event of an accident.
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.
Protects 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 and attendant care 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).
Although 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.
Provides higher coverage limits for medical, rehabilitation, and attendant care expenses related to accident injuries, helping ensure access to additional treatment, support, and recovery services.
Provides weekly income support to an insured person who is unable to work as a result of accident-related injuries, helping to replace a portion of their lost earnings.
Provides financial support to an insured person who is unable to carry on their normal daily activities due to accident-related injuries and does not qualify for an Income Replacement Benefit.
Provides reimbursement for reasonable caregiving expenses when an individual who has suffered a catastrophic impairment is unable to continue caring for their dependants due to accident-related injuries.
Provides reimbursement for reasonable caregiving expenses when an individual who has sustained an impairment in an accident is unable to continue caring for their dependants due to accident-related injuries, if this optional benefit was purchased.
Helps cover reasonable expenses for the care of dependants when an insured person is unable to provide that care due to accident-related injuries, if this optional benefit was purchased.
Helps cover reasonable travel, accommodation, and meal expenses incurred by family members or other visitors who travel to visit an insured person receiving treatment for accident-related injuries.
Provides reimbursement for reasonable housekeeping and home maintenance expenses when an individual with a catastrophic impairment is unable to perform these tasks due to accident-related injuries.
Provides reimbursement for reasonable housekeeping and home maintenance expenses when an individual is unable to perform these tasks due to accident-related injuries, if this optional benefit was purchased.
Helps reimburse eligible educational expenses that are lost because an insured person is unable to continue or complete their studies due to accident-related injuries.
Provides coverage for the repair or replacement of personal items that were damaged in the accident (e.g., glasses, clothing, medical devices).
Provides a lump-sum payment to eligible surviving family members if an insured person dies as a result of injuries sustained in an accident.
Provides reimbursement for eligible funeral and burial expenses when an insured person dies as a result of injuries sustained in an accident.
Annually increases certain weekly benefits and monetary limits in line with the Canadian Consumer Price Index.
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 law applies a deductible to many pain and suffering awards arising from automobile accident lawsuits. This means a portion of an award may be deducted before compensation is paid. Optional Tort Deductible Protection reduces the applicable deductible by $10,000, which may increase the amount of compensation available to you or your family.
Deductible amounts and thresholds are set by Ontario legislation and are adjusted periodically.
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.
