Collision Insurance in Ontario: What Every Driver Needs to Know

Ontario drivers have many decisions to make when it’s time to buy or renew their policy. Some types of insurance are required by law, while others are optional, meaning you can choose to add them to your policy. Collision insurance is technically an option, but most drivers do choose to add this coverage for the additional peace of mind. As a collision repair facility, we understand how expensive repairs can be after a collision, and in our humble opinion, accident insurance is one kind of coverage that is well worth investing in. If you are on the fence about whether or not you really need collision insurance, this information should help.

Insurance in Ontario – The Basics

Let’s face it: insurance policies come with pages and pages of fine print that practically no one takes the time to read, let alone understand! We’ve seen the proof of this all too often: A customer comes in for repairs after a collision, only to realize too late that they don’t have the amount or type of coverage they thought. Believe us, this is one mistake that can end up costing you — big time.

All About Accident Coverage

Whether you call it collision insurance, accident coverage, or upset coverage, this type of insurance covers repairs to your vehicle when you are involved in an accident for which you are at fault or partly at fault. (If you are not at fault, the accident would be covered under a different clause of your policy, and collision insurance would not enter into the equation.) As mentioned, collision insurance is optional, and usually specifies a deductible to be paid by the owner if they are deemed to be at fault). However, we highly recommend adding collision insurance to your policy. Even though you might get hit with a slight premium increase if you submit a claim, paying for repairs out of pocket (depending on the estimate) is likely to cost you considerably more. Here are some other important collision insurance facts to keep in mind: 1. If you lease or finance your vehicle, you may have to get collision insurance as a part of your automotive loan terms. This will be the case with many loan agreements for high-end vehicles. 2. If your vehicle is worth less than $2,000, and depending on how much your deductible is, you may not get enough back from submitting an insurance claim to be worth paying for accident insurance.

Who’s at Fault?

Nobody wants to be responsible for an accident and be found at fault, but the fact is that accidents happen — and they are called accidents for a reason! Sometimes, circumstances make it obvious that there is only one driver who could possibly be 100% at fault for an accident. But in a lot of collisions, more than one driver is to blame, which means that two or even multiple parties can be found at fault for a single accident. Drivers can be found anywhere from fault-free to 100% at fault. But it’s not always so black and white: Even if you are charged with an offence, your insurance company will not necessarily find you to be at fault. On the other hand, even when you are not charged with an offence, you may still be found at fault for insurance purposes. To decide who’s at fault, insurance companies refer to the Insurance Act and Fault Determination Rules (https://www.ontario.ca/laws/regulation/900668). If you get into an accident for which you do not believe you were at fault, it’s important to stand up for yourself and make that clear. Since any degree of fault is going to have an impact on your driver record, your insurance rates, and the amount of settlement you’ll be entitled to, it’s important to speak up. Make your position clear, get everything on record, and keep detailed notes summarizing your version of the events.

Shopping for Accident Insurance?  Take Your Time and do Your Homework

Both online and physically, there are thousands of automobile insurance companies vying for your business in Ontario. Many of them offer discounts and other rewards if you bundle your auto, home, and life insurance with the same provider. With so many options, it can be next to impossible to decide which company to go with. As experts in collision repair, we are constantly working with insurance companies on auto-related policies, and we know more about insurance than the average consumer. We are not here to promote any particular provider, so you can trust that we have your best interests at heart. The best advice we can give you is to take the time to compare options between multiple insurance companies. Do your homework, and be sure to read the fine print to fully understand the various coverages available to you. Most importantly, ask lots of questions, such as:

• If I get into an accident, am I covered?
• What is my deductible amount?
• If my car is damaged, am I entitled to a rental car? What are the coverage specifics (duration of time and maximum coverage) for rental cars?
• Will my car be repaired using new/OEM (Original Equipment Manufacturer) parts, or are only non-OEM (aftermarket) parts covered?

Know Your Driver Rights

Did you know that automobile insurance policy owners in Ontario are entitled to specific rights? As long as you fulfill your responsibilities as a driver and insurance consumer, these driver rights are always in effect. They are set out in the Insurance Act and governed by related legislation. In this province, the Financial Services Regulatory Authority of Ontario (FSRA) is responsible for monitoring and supervising the actions of insurance policy providers, including automobile insurance companies. As set out on the FSRA website, drivers have the right to:

1. purchase auto insurance coverage
2. be treated fairly by their insurance company
3. be given written reasons if denied auto insurance
4. keep their policy in place by paying premiums and meeting all responsibilities
5. pay auto insurance premiums in monthly instalments
6. keep their policy in place if premium is paid within 30 days following one or two non-sufficient fund (NSF) situations
7. be informed in writing if their policy is not being renewed
8. change or cancel their insurance policy at any time
9. remain with their insurance company even if that company no longer sells insurance through their existing broker
10. know the amounts of quotes and which companies provided them to the broker
11. prompt and fair handling of claims
12. reasonable repair of their damaged vehicle
13. choose a repair shop, tow operator or vehicle rental company. (Insurance companies can recommend their preferred provider, but this is always 100% YOUR choice.)
14. receive information about accident benefits
15. dispute their insurance company’s refusal to pay benefits
16. register a complaint about their insurance company (see below)

If you should ever have a dispute with your insurance company and believe they have violated any of your driver rights, the FSRA website also sets out the specific steps you need to follow in order to register your complaint, as follows:

Step 1: Find your insurance company’s complaint officer

Step 2: Request a final position letter on your case.

Step 3: If your insurer has not referred you to the General Insurance Ombudservice and you feel the insurance company or agent may have breached the Insurance Act, then send a complaint to FSRA. FSRA will consider your complaint if relevant documentation exists that supports your complaint.

Decision Time!

We’ve covered a lot of information here — from Ontario auto insurance policy basics to an in-depth look at accident insurance and the rules surrounding it, but hopefully it’s been worth it. As a driver in Ontario, it’s in your best interests to know as much as you can about your policy options, including collision insurance. We are always happy to share our expertise around matters of insurance! If you need some extra guidance or would like us to work directly with your insurance company to manage your claim, don’t hesitate to call or send an email to Mike.T@Mitekautobody.com.

A final word: although we’re in the business of collision repair, we hope you will never find yourself in need of our expertise. Even “minor” accidents are stressful, costly, and something you can definitely do without. But if the worst happens, we’ll be here to restore your car to its original glory—and give you one less thing to worry about.

Mike Tikl

Proud owner of Mitek Fine Autobody & Paint,

Serving Kitchener, Waterloo, Cambridge, Guelph, and the surrounding region since 1980,

Your Fine Car Deserves our Fine Care