There are many misconceptions by consumers regarding automobile coverages, hopefully these definitions and facts help identify and eliminate these misconceptions.

No Fault

Ontario has a no-fault automobile insurance system. Regardless of who is at fault in the accident, your automobile insurance policy assumes financial responsibility.

Collision

This is the optional portion of your insurance policy that pays to repair the physical damages to your vehicle when it is involved in an insurable accident, in which a portion is your fault. Any repairs paid out are in addition to the deductible option and the claim is regarded as a chargeable accident to your policy. This generally results in a rating change and therefore an increase in premium.

Direct Compensation - Property Damage

This is the mandatory portion of your auto insurance policy that pays to repair the physical damages to your vehicle, when you are involved in insurable accident that is not your fault. This type of claim is not regarded as a chargeable accident to your policy and therefore will not affect your rating or premium.

Comprehensive

Optional coverage to your policy that covers the repair of broken glass, vandalism, fire or theft to your vehicle. Payments are for the vehicle only and are subject to the deductible chosen. In the event of a comprehensive claim, the personal contents in the vehicle are not covered under the auto policy.

Liability

Protects you if someone else is killed or injured or their property is damaged. It will pay for legitimate claims against you up to the limit of your coverage, and will pay the costs of settling the claims.

Accident Benefits

Provides benefits if you are injured in an automobile accident, regardless of who caused the accident. These benefits include ...

• supplementary medical care, rehabilitation and other care
• a tax-free income benefit for wage earners or self-employed
• an income benefit to those who have no income from employment
• an educational benefit to those unable to attend school
• an allowance for a caregiver when injured
• funeral expenses and death benefits when a person dies in an accident

Uninsured Automobile

Protects you if you are injured or killed by an uninsured motorist or by a hit-and-run driver. Covers damage to your automobile caused by an identified uninsured motorist.