Frequently Asked Insurance Questions

  • Renting a car

    Have you ever rented a vehicle? Did you know that you can purchase additional coverage by way of an annual endorsement to your own policy that provides physical damage insurance for any rented vehicle during the policy term? This endorsement is good for vehicles rented only within North America. Limits of coverage can vary, so it is important to confirm how much coverage your policy will include. This endorsement is simple to arrange and far more economical than the costly damage waivers offered by the rental companies.

  • Traveling outside the province or country

    Your insurance will apply if you take your car on short trips to other provinces or into the continental U.S., as long as you engage in normal use of the vehicle.

  • Moving to another province

    If you are relocating long-term or permanently, you must inform your insurer and arrange for new coverage in the province where you reside. Your Ontario coverage will not extend to a non- resident.

  • When the car is "in the shop"

    Under standard insurance policies, you are not entitled to a replacement vehicle while your car is in the shop for normal maintenance or repair. An endorsement can be purchased to provide a rental vehicle for you if your car is not usable due to an insured claim.

  • When driving someone else's car

    If you borrow someone else’s car, the insurance policy on that vehicle will extend to provide you coverage. If you are a regular operator of that vehicle, you should be added as a driver onto the policy.

  • When someone else drives your car

    Remember that when someone else is driving your car, you are still responsible for any accidents. Any at-fault accidents or claims will go onto your driving record and affect your future premiums.

  • What is liability insurance?

    Liability insurance covers the cost of damages to a third party (medical costs, lawsuits, and awards) in the event of personal injury or death from an accident involving your vehicle. In other words, it is financial protection if you are held liable for an injury or loss by others arising from the operation of your vehicle.

  • When to consider extra liability coverage

    The recommended level of liability insurance coverage is usually about $1 million. There are some situations in which you might want to increase your liability limit depending on the use of your vehicle. For example, if you drive into the U.S. on a regular basis, where liability settlements are generally higher than in Canada, you might want to consider higher coverage. If you carpool to work or drive groups of children in your car to school or after-school events, you might want to increase your coverage to reflect the higher risks to which you are exposed.
    Ask your broker for more information about liability insurance and how to obtain the right level of coverage.

  • What is no-fault insurance?

    Many provinces in Canada now have some level of no-fault insurance in which each person’s own insurance company pays for injury or damage up to a certain limit. This applies regardless of whether or not the insured person was at fault. In Quebec and Manitoba for example, there is a pure no-fault system. In Ontario however, there is a threshold system in which the no-fault clause only applies up to a certain threshold of liability. So, if you are involved in an accident and injured, your own insurance covers the associated costs of treatment, living expenses, loss of work and pain and suffering. This means injuries that are not “serious and permanent” are covered by your own insurance. Your insurance also covers the associated costs of treatment, living expenses, loss of work and dependent care.