Direct compensation- property damage coverage (Ontario only)

This option is mandatory in Ontario. It provides coverage for damage to your car and any of your property inside the car, because of an automobile accident where you are not-at-fault.

Accident benefits coverage (not applicable in Quebec)

Accident Benefits Coverage provides for you and your family if you are injured or killed in an automobile accident. Accident Benefits provide income replacement for persons who have lost income as well as:

• payments to non-earners who are not able to carry on a normal life;
• payment of care expenses to persons who can no longer act as a primary caregiver for a member of their household;
• payment of medical, rehabilitation and attendant care expenses;
• payment of certain other expenses;
• payment of funeral expenses and payments to survivors of a person who is killed.

Collision or upset coverage

Collision coverage protects your vehicle if it is damaged in an accident. This coverage is optional because the cost of insuring some older vehicles for collision could be higher than the value of the vehicle itself.

There is usually a deductible amount indicated for this coverage. The deductible is either paid by you, toward the cost of repairs, or is deducted from the claims settlement.

Comprehensive coverage

Comprehensive coverage protects your car against loss or damage other than the collision coverage. This would include falling or flying objects, missiles and vandalism.

There is usually a deductible amount indicated for this coverage. This amount is either paid by you toward the cost of repairs or is deducted from the claims settlement.

Damage to non-owned automobile coverage

If you need to rent a car for a short term, this option provides you with collision and comprehensive coverage on the rented car. This type of insurance can get expensive if you purchase it from a rental car company. Some of these companies charge up to the same amount per day for this coverage, as you pay for a year's premium.

Before you sign up for this coverage, take a moment to check with your rental car company and your credit card company. You may already have this coverage elsewhere.

Emergency road service coverage

Stuck at the side of the road with a non-functioning car? This coverage pays for your towing services. Before you sign up for this coverage, be sure to check if you already have emergency roadside assistance coverage with an independent company.

Family protection coverage

Family Protection Coverage provides coverage for you and your family from the actions of an at-fault, underinsured driver. If you are travelling in a province or a state where the mandatory liability coverage is low, Family Protection Coverage ensures that you and your family are covered if you are injured in an accident up to your own policy's limits regardless of the other person's coverage levels.

Loss of use coverage

Say you're involved in an accident and your car is damaged. Loss of use coverage pays for a rental car or alternate transportation (like taxi or train fares) while your automobile is being repaired. Coverage limits can be $50/day up to a maximum of $750 per claim.

Liability limit

Liability insurance provides coverage for you if someone else is injured or killed. It also provides coverage if their property is damaged as a result of an automobile accident. Ontario has a "no-fault" car insurance system. This means that if you're injured or your car is damaged, then you deal with your own insurance company, no matter who is at fault. You don't have to go after the at-fault driver for compensation. If you are legally responsible for an accident, then you are also legally responsible for the damages. If you are uninsured, you will be charged with driving without insurance, and you may be fined. You may also have your driver's licence suspended until you have made satisfactory arrangements to repay the amount owing.

Uninsured motorist coverage (Ontario and Alberta)

Provides coverage for you if you are in an accident with an at-fault, uninsured driver who is identified at the scene of the accident.

Uninsured automobile and unidentified driver (Atlantic Provinces)

This option provides coverage if you are in an accident with an at-fault, uninsured driver. It even covers you if the driver is not identified at the scene of the accident. (e.g. hit-and-run accidents)

Depreciation waiver coverage

Has your car been written-off in an accident within the first 24 months of the original delivery date? This optional coverage ensures that you will receive the full value of what you paid for the car - without depreciation. If your car can be safely repaired, your insurance company will arrange for necessary repairs.