Auto Insurance Info

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Introduction 3

Applying or auto insurance 4

What do I need to know to fll out an automobile insurance application? 4

What is the impact o inaccuracies or omissions in applications or automobile insurance? 5

Why is it important to pay premiums on time? 5

What should I know about a lapse in insurance coverage? 6

What coverage is mandatory and what coverage is optional? 7

How do deductibles work? 9

Establishing a premium 10

What inuences my premium? 10

How can I get a premium discount? 10

How do claims aect my premium? 11

How do convictions aect my premium? 11

I I have to make a claim 14

What do I do i I am in an automobile collision? 14

What should I know about fling an insurance claim? 16 What is no-ault insurance all about? 17

How do accident benefts work? 19

What happens when a vehicle is a total loss? 20

Why is my car not always repaired with new parts? 20

Ater the claim 21

Ontario Mandatory Vehicle Branding Program:

What happens i my vehicle is severely damaged? 21

Driving in the United States 23

With appropriate acknowledgement, this publication may be reproduced and used in whole or in part,provided such reproduction is intended for personal or educational use and not for monetary gain of anykind. In all written or spoken references to this information, please include Information provided courtesyof Insurance Bureau of Canada.

Updated: November, 2011

Contents Page


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ONTARIO AUTO INSURANCE: FAQS | 3

Introduction

Every year, inormation o cers at Insurance Bureau o Canadas Consumer Inormation Centres answer tens othousands o questions rom insurance policyholders across the country. At the Ontario Consumer InormationCentre, many o these questions are about automobile insurance.

Automobile insurance is complex. As a consumer, you should examine your policy careully. Few people botherto read their policy until they are involved in a collision, a car they own is broken into, or they have someother problem.

When shopping or auto insurance, remember that the wording o your policy will be the same no matter whichinsurance company issues it because the Ontario Automobile Policy and related endorsements (endorsementsare add-ons to basic coverage) are orms approved by the Financial Services Commission o Ontario (FSCO).However, not all companies provide all the endorsements. Your insurance representative can help you decidewhat coverage is best or you.

In this publication, we have done our best to answer the questions most oen asked about car insurancein Ontario. I you have other questions or need more inormation, please call us or visit our website.Te Consumer Inormation Centre can also help you with your home and business insurance.

CONSUMER INFORMATION CENTRE

Monday through Friday between 8:00 a.m. and 5:00 p.m.

In Toronto: 416-362-9528

Elsewhere in Ontario: 1-800-387-2880

Fax: 416-644-4961Website: www.ibc.ca


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4 | ONTARIO AUTO INSURANCE: FAQS

Applying for auto insuranceWhat do I need to know to fll out an automobile insurance application?

Here is some o the inormation you will need to provide on an automobile insurance application:

1. Vehicle inormation

Year, make, model, body type, numbero cylinders or engine size, gross vehicleweight rating.

Vehicle identifcation number, or VIN(serial number).

Estimated annual driving distance.

Lienholders name and postal address(the person or group you are still makingpayments to i your car loan is not paid in ull).

Automobile use, including pleasure, business,driving to work.

2. Driver inormation

For each driver name, drivers licence number,date o birth, date frst licensed in Canada,other classes o licence (i any), the percentageo time each driver uses the vehicle(s).

Whether you or the other drivers have drivertraining. I so, the training certifcate(s)need(s) to be attached so that you andthe other drivers can be considered orpremium discounts.

Whether anyone else in the household or

business is licensed to drive. I so, detailsneed to be provided in the remarks sectiono the application.

Whether any drivers licence, vehicle permit,etc., issued to you or any person in thehousehold or business has been suspendedor cancelled in the last six years.

Whether any insurance company cancelledautomobile insurance or you or any driverlisted on the application in the last three years.

Whether any automobile insurance policyissued to you or any listed driver has beencancelled or any claim has been denied or

material misrepresentation (not telling thetruth) in the last three years.

Whether you or any listed driver has beenound by a court to have committed a raudinvolving automobile insurance.

3. Previous collisions, insurance claims and driver convictions

You must disclose details about all collisionsor claims on any automobile o any listeddriver during the last six years.

You need to provide details o the date oclaim, type o claim, amount paid or estimateo damage and other details. I you need help,contact your insurance representative beorecompleting the application.

You need to provide details o all convictionsyou and any listed drivers received arisingrom the operation o any automobile in thelast three years. I you do not know or are

unsure o conviction dates, ask yourinsurance representative.

4. Types o coverage applied or

You must indicate the types o coverage and endorsements you are applying or (the types o coverageand endorsements will be covered in more detail below).


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What is the impact o inaccuracies or omissions in applications

or automobile insurance?

Te inormation you give on an application orautomobile insurance is the basis or calculating thepremium required and terms and conditions o the

policy, i one is issued.

Te Superintendent o Financial Institutions atFSCO approves the wording o automobile insuranceapplications. Te application contains a declarationwhere you confrm that the answers to questions aboutyou and all the other drivers o the insured automobilein the household or business are correct. Tere is alsoa warning about the possible consequences o leavingthings out or not telling the truth in other words,errors or omissions in your answers.

When you sign an application, you are confrming theaccuracy and completeness o the inormation in thatapplication. Even i your answers are written on theorm by someone else, the responsibilityor the answersis yours. Discussions between you and the personcompleting the orm are not part o your applicationunless the written answers include that inormation.

While the insurance company may be able to checkthe accuracy, you mustgive complete, accurateanswers. Inaccuracies or omissions may mislead the

insurance company. As a result, your insurance couldbe invalid (you lose your right to recover a loss) oryour policy may be cancelled.

A cancellation o your policy because omisrepresentation generally results in you payingmore or any policy you are able to get later.

Ask your insurance representative to explain thecurrent driving and conviction inormation shownon your existing policy.

When you sign the application, you authorize theinsurance company to collect, use and disclose yourdriving record, auto insurance history and auto claimshistory, and the record and history o any listed drivers.

Why is it important to pay premiums on time?

Your premium is due as soon as it is billed by yourinsurance representative, and you should send itpromptly. I you are having problems paying ontime, you must discuss the situation with yourinsurance representative beore your accountbecomes delinquent. Oen, additional paymenttime can be arranged or an alternative paymentmethod may be oered. Do not ignore the situationor you may fnd yoursel driving without insurance,which is a serious crime.

I your insurance representative or insurance company

is not paid and is unable to get a response rom you orto reach you, they have no choice but to cancel yourpolicy by providing cancellation notice either by handdelivery or registered mail. Your insurance companycan cancel your policy or non-payment subject toproviding you 15 days notice in person or 30 daysnotice via registered mail. In cases o repeated non-payment, your insurance company can cancel yourpolicy by providing you fve days notice in personor 15 days notice via registered mail.

I you do not want to renew a policy, notiy yourinsurance representative promptly. Some peoplebelieve that i they have arranged insurance elsewherethey do not need to notiy the previous insurancerepresentative. Tis is not so! Your policy willbe cancelled or non-payment o premium. Tiscancellation will be a black mark against yourinsurance record, and your uture premiums maybe higher as a result.

I you pay your premium with a series o postdatedcheques or by pre-authorized bank withdrawals, make

sure the money is in your account, ready or transerto the insurance company. I you do not have enoughmoney in the account and the insurance companycancels your policy, you cannot assume your coveragewill automatically be reinstated later on.


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What should I know about a lapse in insurance coverage?

A lapse in insurance coverage will not be held againstyou unless:

You operated or caused or permitted the operation

o the automobile without auto insurance duringthe lapse in coverage.

Your policy was cancelled or non-paymento premium.

Your drivers licence was suspended becauseo a conviction related to the use or operationo the automobile, e.g., impaired driving.

You did not inorm the insurer o a collisionor conviction.

When you want insurance coverage at a later date,you may need to prove you had prior insurance. Youcan obtain a letter rom your insurance representativeoutlining your current policy number, insurancecompany, how long you were insured and yourcollision and conviction history.

A letter can be provided by your insurer i youare going to cancel your policy or any o theollowing reasons:

You have sold your car and do not plan to replaceit or a while.

You will be moving out o the country temporarily.

You are going to drive a company car and will notneed your own vehicle.

Alternatively, you can write down the reason or alapse in insurance and make two copies. Give one tothe insurance representative and ask him or her to sign

the other copy or your records. Tis provides you withdocumentation when you need insurance again, in casethat broker/agent is no longer available to veriy yourlapse in coverage. Also keep a copy o your latest policy.


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What coverage is mandatory and what coverage is optional?

Automobile insurance is required by law in Ontario. You must not drive without it.

While the law calls or standard policy wordings and oversees the range o options, there are many insurerscompeting or price and service in the Ontario market. Brokers and agents can tell you which insurers theyrepresent and which companies they get quotes rom, and show you those prices on request.

MANDATORY coverage

o drive in Ontario, you must have direct compensation property damage (DCPD) coverage, uninsuredautomobile coverage, liability bodily injury coverage, and accident benefts coverage. Tese are all compulsory.Tis means that, by law, you must buy these types o coverage.

Type oCoverage

What the coverage doesMinimum orlimit requirements

Liability Bodily Injury

Protects you i someone else is killed or injured or theirproperty is damaged. It will pay or legitimate claims againstyou up to the limit o your coverage and will pay or the costso settling the claims.

$200,000 (higher limitsare recommended).

Accident Benefts Provides benefts i you are injured or killed in an automobilecollision anywhere in Canada and the United States regardlesso who caused the collision. Tese benefts may include:

Income replacement.

Payments to non-earners who suer a complete inability

to carry on a normal lie. Care expenses to persons who cannot continue as a

primary caregiver to a member o their household.

Medical, rehabilitation and attendant care expenses.

Certain other expenses.

Funeral expenses.

Payments to survivors o a person who is killed.

Te details o theaccident beneftsare set out in theStatutory AccidentBenefts Schedule othe Insurance Act o

Ontario, and are alsoavailable on InsuranceBureau o Canadaswebsite at www.ibc.ca.

UninsuredAutomobile

Protects you i you are injured or killed by an uninsuredmotorist or hit-and-run driver to the extent that you werenot at ault.

Covers damage to your automobile caused by an identifeduninsured motorist.

$200,000 limit.

Up to $25,000, subjectto a deductible o $300.

DirectCompensation

Property Damage(DCPD)

Allows you to claim or damage to your vehicle and itscontents caused by someone else. DCPD means that, to theextent that you are not at ault in a collision with anothervehicle, your own insurer will pay or damage to your vehicleand its contents.

Standard $500deductible (canbe increased ordecreased).


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OPTIONAL coverage

You are not required by law to purchase collision or comprehensive coverage. However, i you owe money on yourvehicle, your lienholder (the person or group you are making payments to i your car loan is not paid in ull) mayrequire you to have these types o coverage to protect their interest in your vehicle.

Type oCoverage What the coverage does Minimum or limitrequirements

Collisionor Upset

Pays or damage to your vehicle to the extent that you are atault or or damage caused by an unidentifed vehicle or object.

Te standarddeductible is $500or collision orupset and $300 orcomprehensive;however, you maychoose a higherdeductible in order todecrease your rates.

Comprehensive Pays or all insured damage to your vehicle except or collisiondamage (e.g., pays or fre, the and vandalism).

All Perils Tis coverage combines collision and comprehensive. It is thebroadest coverage available and it includes all types o coverageunless specifcally excluded.

Specifed Perils Pays only or losses caused by perils specifcally listed in thepolicy (primarily fre and the).

Increased

Liability

You may buy coverage beyond the minimum required by law to $1 million or $2 million.

IncreasedAccident Benefts

You may buy coverage beyond the minimum required by law. Te optional benefts yourinsurance company oers are:

Increased income replacement.

Caregiver, housekeeping and home maintenance.

Increased medical, rehabilitation and attendant care.

Increased death and uneral. Dependant care.

Indexation o benefts to ination.


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Endorsements

In addition to the types o coverage listed above, youmay purchase a number o enhancements to yourinsurance policy (known as endorsements). Tese arethe six most common endorsements:

Rented or leased vehicles (OPCF 5) Extendscoverage to a vehicle you drive that is owned by aleasing company.

Loss o use (OPCF 20) Pays or a rental vehiclei your vehicle is being replaced or repaired as aresult o damage or loss caused by an insured peril.Ask your agent or broker or the limit applicable toyour policy.

Liability or damage to non-owned automobile(s)(OPCF 27) Provides legal liability protection orphysical damage to a vehicle that you, your spouseor any listed driver operates but does not own,such as a rented or borrowed vehicle.

Removing depreciation deduction (OPCF 43) Removes your insurers right to deductdepreciation rom the value o your vehiclewhen covering damage or loss to your vehiclerom an insured peril.

Family protection coverage (OPCF 44R) Protectsyou or an eligible amily member to the samelimits as your own third-party liability coveragei you or an eligible amily member are involvedin an automobile collision where the at-aultparty is inadequately insured to cover the claims.

When you fll out your application or automobileinsurance, you have to indicate whether or not youwant this coverage.

Added coverage to oset tort deductibles (OPCF48) Reduces the deductible associated withcourt-awarded compensation or pain andsuering rom $30,000 to $20,000 and orFamily Law Act claims rom $15,000 to $10,000.

Tere are many other endorsements available that

are less common but may be o beneft to you. Yourinsurance representative will be amiliar with all othem and will advise you i any would be o beneftto you.

How do deductibles work?

A deductible is the part o a claim that you must payyoursel. Higher deductibles usually mean lowerpremiums but higher fnancial risk.

Under the DCPD provisions o your policy (seeMandatory Coverage on p. 7), i you are not at aultor a collision (in Ontario involving another Ontario-insured vehicle), there is a $500 standard deductibleunless you chose to lower or increase it at the timeyou purchased your policy. Te ull amount o thedeductible applies, regardless o your degree o ault

or the collision.

I you have bought optional coverage or collisionor upset, or or comprehensive, and i you are ullyat ault or the damage to your vehicle, the standard$500 or $300 deductible applies, respectively (unlessyou selected another amount). However, yourinsurance representative will explain how thesedeductibles will apply.

I you are claiming or losses unrelated to a collision(hail dents, or example) your ull deductible applies,except in the case o fre or lightning, or which no

deductible applies.


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Establishing a premiumWhat inuences my premium?

Automobile premium levels are aected by manyactors, such as:

Te ways you use your vehicle. (Do you use yourvehicle just or pleasure? Do you drive to work oruse your car or business?)

Te type o vehicle you drive.

Te year, make, model and body type o yourvehicle.

Te approximate number o kilometres you driveyour vehicle annually.

Te listed drivers o your vehicle.

Te age and driving experience o each driverin the household. (Are any drivers under age 25?Are they male or emale?)

Te amount o time each driver will be usingthe vehicle.

Te claims and collision history or each driverover the last six years.

Each drivers conviction record or the lastthree years.

Whether any driver in the household has had alicence suspension within the last six years or anautomobile insurance policy cancelled in the lastthree years.

How can I get a premium discount?

Discounts vary by company. Ask your insurancerepresentative which ones apply to you. Te ollowing

is a list o some types o premium discounts that maybe available.

Some companies oer discounts or using yourcar inrequently (low mileage use), or graduatingrom an approved driver training course, or orvolume when two or more vehicles are insured orthe same household.

Retirees with no employment income receive adiscount. Some companies provide other discountsto mature drivers over age 55.

You may be eligible or a discount i you choose toinsure your home and car with the same company.

Some companies provide an extra discount whenrenewing policies or long-time customers who areclaims-ree.

You may get a discount i you install loss-prevention devices, such as a car immobilizer.

I your car is not used in winter, speak to yourinsurance representative about arranging anagreement o suspension o coverage endorsement(OPCF 16). Tis suspends coverage in relation tothe use or operation o the vehicle but maintainscoverage associated with the ownership o thevehicle (e.g., DCPD in case your car gets struck byanother vehicle while parked) as well as accidentbenefts in case you, your spouse and/or anylisted drivers are in a collision as occupants in anautomobile you do not own or are struck by an

uninsured automobile. Increasing your deductibles could give you a lower

premium.


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How do claims aect my premium?

I you are at ault or partially at ault in a collision, your renewal premium may be aected. I you lend your car toothers and they cause a collision, your premium may be aected.

Numerous at-ault claims and/or driving convictions could result in you being transerred to the higher-premiuminsurer, Facility Association, at renewal time.

Some types o claims do not aect your premium. For example, claims where you were 25% or less at ault do notaect your premium. In addition, some companies allow one at-ault claim, regardless o percentage at ault, orclients believed to be good drivers, with little or no adjustment in rating or premium at renewal. Claims or the,vandalism, fre, broken glass and collision (when you are not at ault) do not aect your renewal premium.

How do convictions aect my premium?

Driving convictions may aect your rating in several ways depending on the number and type. Premiumcalculations vary by company. Contact your insurance representative i you are concerned about how a conviction

will aect your renewal premium.

o be eligible or preerred rating plans, such as six star, you must have a clear record or no more than one ortwo minor driving convictions (requirements vary by insurance company). Additional convictions usually resultin the loss o your preerred status and discounted premiums. So, in addition to the police fne, your insurancecosts can increase.

Insurance companies may also levy a premium surcharge i you have several minor driving oences or one othe more serious oences under the Criminal Code o Canada or the Highway ra c Act. Surcharges vary bycompany but many use the Facility Association rules as a guideline.

Te ollowing are examples o premium surcharges the Facility Association applies on private passenger vehicles:

Minor Major Serious

One conviction 0%

wo convictions 5%

Tree convictions 15%

Four convictions 25%

Each additional 15%

One conviction 15%

Each additional conviction 25%

One conviction 100%

Each additional conviction 100%

Note: Te maximum surcharge the Facility Association applies is 250%.


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What constitutes a minor, major and serious ofence?

Minor Major Serious

Tis list o minor convictions is notall-inclusive. Other moving violations,

including new oences under an actgoverning highway tra c, may beconsidered minor, whether committedwithin or outside Canada, i not specifcallynamed in the major or serious list.

Failure or reusal to surrenderlicence (Compulsory AutomobileInsurance Act)

Failure to produce evidence oinsurance (CAIA)

Failure to carry insurance card (CAIA)

Failure to carry evidence o insurance(CAIA)

Failure to have insurance card (CAIA )

Failure to disclose particulars (CAIA )

Failure to notiy police

Failure to make written report

Backing up unsae/illegal/improper any type

Brakes none/inadequate/improper any type

Crowding drivers seat

Door opening illegal/obstructingtra c any type

Emergency vehicle operatingwith no regard or saety

Driving imprudently

Driving o roadway shoulder/sidewalk/median) any type

Disobeying agman/woman

Following too closely

including tailgating Using a hand-held wireless

communication device

Headlights/parking lights improper/lack o use any type

Convictions or any o theollowing oences under any

act governing highway tra cor under the CompulsoryAutomobile Insurance Act(CAIA), or under the MotorVehicle Accident Claims Act(MVACA) or or any oencesubstantially the samecommitted within oroutside Canada:

Failure to report damageto highway property

Failure to stop on requesto or to obey directions oa police o cer

Failure to report a collision

Failure, in the event o acollision, to give nameand licence number tothe police or any otherperson entitled to suchinormation

Failure to obey school

crossing stop sign Improper passing o

a school bus

Improper passing/speedingin a school or playgroundzone

Stunting

Producing alse evidence(CAIA)

Making a alse statementregarding insurance(MVACA)

Producing alse insurance(MVACA)

Making a alse statement(CAIA)

Convictions or any o theollowing oences under the

Criminal Code o Canadaor under an act governinghighway tra c or under anyother act or or any oencesubstantially the samewhether committed withinor outside Canada or anyconviction that appears ona driver record abstract as aCriminal Code conviction:

Speeding 50 kph or more

over the speed limit Driving without

insurance

Operating motor vehicle no insurance (CAIA)

Criminal negligencecommitted in theoperation or use o amotor vehicle

Manslaughter committedin the operation or use

o a motor vehicle Driving while licence

under suspension

Racing

Careless driving

Driving without due careand attention

Driving without aninterlock device whereits installation is arequirement or licencereinstatement

Dangerous driving

Impaired driving


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Lack o control o vehicle any type

Motor-assisted bicycle carryingpassengers

Motorcycle operating with onlyan instruction permit

Motorcycle ailure to wear helmet

Passing inraction any type exceptschool bus or school/playground zone

Pedestrian crossing violation any type

Radar warning device in motor vehicle i illegal in province/territory

Railway crossing violation any type

Saety zone violation any type

Seatbelt violation any oence

Signalling oences any type

Slow driving endangering others any type

Smokescreen device on vehicle

Speeding any type, except whenlisted as major or serious

Squealing tires

Stopping illegal/improper any type

ires deective/worn any type

owing prohibited/unsae any type

ra c signals/regulating lights disobeying any type

ra c signs disobeying any legal signexcept parking regulations

railer improper attachments/improper towing

urns illegal/improper any type

Unlicensed driver any type includingimproper licence class

Unsae move

Unsae vehicle any type

Wrong side o road/wrong way any type

Failing to yield any type includingailing to yield to a public bus

Ontario GraduatedLicence

- permit novice drivingin contravention o

conditions/restrictions- class G1 accompanying

driver ails or reusesto provide a breath orblood test

- class G1 accompanyingdriver has excess bloodalcohol

- class G1 driverunaccompanied byqualifed driver

- class G1 driver with rontseat passengers

- class G1/G2 driver withexcess passengers

- class G1 driver onprohibited highway

- class G1/M1 driver atunlawul hour

- class M1 driveron motorcycle with

passenger- class M1 driver

on motorcycle onprohibited highway

Failure or reusal tosubmit to a breath orblood test

Failure to pass a breath

or blood test Failure to stop/remain

at the scene o a collision

Class GI/G2/M1/M2 ail/reuse breath sample

Class G1/G2/M1/M2driver with alcohol inblood

Note: I convictions or

impaired driving and ailureor reusal to take a breathor blood test relate to thesame occurrence, theywill be considered as oneconviction.


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If I have to make a claim What do I do i I am in an automobile collision?

At the scene

Stop. Failure to do so may result in criminalprosecution.

Stay calm.

Oer help to anyone injured.

I the collision is an emergency, call 911 andollow instructions. Use 911 or emergenciesonly! In Ontario, all collisions resulting in injuryor property damage o more than $1,000 must be

reported to the police. Move vehicles out o tra c, i possible. Do not

drive the vehicle unless it is sae to do so. I youcannot drive the vehicle, turn on your hazardlights or place cones, warning triangles or aresaround the vehicle.

I no one is injured and the total propertydamage is estimated to be less than $1,000, calllocal police or instructions. Police may or maynot be dispatched to the collision. A number olocations have special programs in place to deal

with vehicle collisions. oronto, or example, hasCollision Reporting Centres where collisionsmust be reported in person within 24 hours ipolice did not attend the collision scene. Findout what is required in your area, and keep thisinormation in your glove box.

Record details o the collision how, when,where it happened, time, date, location, speed,weather and road conditions.

Draw a sketch o the collision scene showing theposition and direction o the vehicles and the

cross streets.

Keep a camera in your vehicle and take photoso the damage to your vehicle and the damageto the other vehicle(s). Tis can be helpul isomeone is trying to claim other damage orthere is a dispute about what happened.

Answer police questions honestly but make nocomments or admit any blame or the collision.Your insurance company will determineault, based on the Fault Determination Rules

established by the Ontario government.

Note the badge numbers o the investigatingo cers i police attend the scene.

Get names, addresses, telephone, drivers licenceand plate numbers, and insurance details romeveryone involved.

Get names, addresses and telephone numbersrom witnesses when possible. It is also helpulto jot down licence plate numbers o othervehicles i you think someone in them might

have seen the collision, but with moving tra cthis may not be possible.

Be careul o tow truck operators pressuringyou to authorize towing or repairs at the scene.You have the right to request estimates o eesin advance. I you eel you are being pressured,ask police or the name o an authorized towtruck operator and have your vehicle towed tothe police compound or your driveway until youtalk to your insurance company.


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Ater the collision

Report the collision to your insurancerepresentative as soon as possible. He or she willexplain the coverage provided by your automobilepolicy and start handling your claim.

I you are injured in the collision, your companywill provide you with a package o accidentbenefts claims orms, which must be completedand signed to start your benefts.

You are responsible or protecting your vehiclerom urther loss or damage. You must notauthorize repairs, other than those needed orprotection o the vehicle rom urther loss ordamage, until the insurer has consented or has areasonable amount o time to inspect the damageand consent.

Many insurance companies have a list opreerred body shops that will complete properrepairs to your vehicle. Your insurance adjusteror broker/agent can assist you with fnding a

good one in your area.

Your insurer will usually pay the lower o thecost to repair the loss or damage or the actualcash value o the vehicle at the time it wasdamaged. Your insurer makes the decision torepair, replace or rebuild your vehicle, or payor the damage. Te Ontario Automobile Policyentitles you to have repairs done with parts osimilar kind and quality. In other words, yourcar should be repaired so it is in a conditionapproximately the same as it was prior to the

collision.

Reporting a collision to the police

Te Highway ra c Act requires any personinvolved in a car collision to:

Report the collision to the nearest police o cer;

Remain at or immediately return to the scene orthe purposes o oering assistance when needed;and

Upon request, provide the name, address,drivers licence number and jurisdiction oissuance, motor vehicle liability insurance policyinsurer and policy number, and the name andaddress o the vehicles registered owner to apolice o cer, to any person sustaining loss orinjury in the collision, or to a witness to thecollision.

By law, all collisions must be reported to the police ithere are any personal injuries or deaths, and wherethe damage to all vehicles is more than $1,000.

You are required to report such collisions to theinsurance company within seven days. I you areunable to report within the seven days, report it as

soon as possible.Te penalty or ailing to report a collision and/orailing to provide the necessary inormation is a fneo $400 to $2,000, three demerit points, a possiblejail term and drivers licence suspension. Te penaltyor leaving the scene o a collision includes sevendemerit points.

Te police are required by law to investigate allreported motor vehicle collisions and to provide areport to the Registrar o Motor Vehicles (OntarioMinistry o ransportation).


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What should I know about fling an insurance claim?

What are the accident benets to which I am entitled?

I you are injured in an automobile collision, you maybe entitled to a variety o benefts. A ull description

o provided coverage is contained in the regulationcommonly known as the Statutory Accident Benefts

Schedule. A copy o this document is available onrequest rom your insurer. Your insurer will provide

you with the necessary claim orms and will help youcomplete them.

Getting your damaged vehicle repaired

I your vehicle is damaged but repairable (and youhave the necessary coverage in your policy), yourinsurer may suggest the repairs be carried out by oneo their preerred shops. I this is done, it will be theresponsibility o the insurer to make sure the workis done satisactorily. You may, i you wish, have thework done by a repair shop o your choice. However,

be aware that the insurer will not pay any more thanthe price quoted by their repairer. Also, i the work is

unsatisactory, it will be your responsibility to deal withthe repair shop.

I the damage is major and cannot be repaired saely, orthe cost o repairs is more than the value o the vehiclebeore it was damaged, the insurer may decide to writeo the vehicle. Tey will negotiate a settlement with

you based on the actual cash value o the vehicle at thetime o the collision and will keep the salvage.

Betterment

When an insurer is paying or a vehicle to be repaired,the shop will replace damaged parts with parts o thesame vintage as the car. For example, the damagedbumper o a 1994 car would be replaced with a 1994bumper. I new parts are used as replacements even

though used parts are available, the value o the carmay be increased. In such a case an amount will becalculated, known as betterment, representing theincrease in value, and you may be asked to contributeto the cost o repairs.

What is covered i my vehicle is broken into?Criminals fnd it proftable to steal and sell automobileequipment and accessories. Tis type o loss is coveredas an add-on to your automobile policy i you havebought all perils, comprehensive or specifed perilscoverage.

However, your personal property in the vehicle, suchas audio disks (except or those in the machine),briecases, suitcases, gol clubs, skis, bikes, fshingequipment and so on, is not covered under theautomobile policy. Coverage or these things isprovided with your homeowners, tenants orcondominium insurance.

You may have to pay two deductibles. Tere is adeductible or the automobile policy (except in thecase o fre or lightning). Your homeowners/tenants/condominium policy has a separate deductible.

I you leave the keys in the car or leave it unlocked,the vehicle itsel (and its accessories) will be coveredunder your automobile policy. As or the contents,some homeowners, tenants and condominium policiesrequire visible signs o orced entry into a lockedvehicle as a policy condition. Contents claims rom anunlocked vehicle would not be covered by automobileinsurance policies.

Locking bikes or skis in your vehicle

Te trunk o a ull-size car can accommodate a bicyclei you take the ront wheel o. Some cars have a specialhatch or sleeve to accommodate skis and poles so theyextend rom the trunk into the rear seat area. Ask your

insurance representative about scheduling your sportsequipment, cameras and other vulnerable items withadditional coverage, especially i your policy has aorced-entry policy condition.


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What is no-ault insurance all about?

It does matter who caused the collision.

You certainly cannot be blamed or being conusedabout the term no-ault insurance it is a commonly

misunderstood term. No-ault insurance does notmean the insurance company lets you o the hook iyou cause a collision. Despite the misleading name, it

does matter who caused the collision, and i you areound to be at ault, either completely or partially, it

will go on your insurance record. Tat means you mayexperience an increase in your uture premiums.

You deal with your own insurance company.

No-ault insurance really means that i you are injuredor your car is damaged in a collision, you deal withyour own insurance company, regardless o who is atault. You do not have to go aer the at-ault driveror vehicle damage reports or or the health care andincome replacement benefts to which you are entitled.

For example, i you are injured in a car collision, youwould ask or any medical benefts oered under yourpolicy immediately rom your insurer, no matter whois to blame or the collision. Tus, you can get the helpyou need right away, instead o having to wait or theinsurance companies to decide who was at ault beore

paying any benefts.

How does an insurance company assess ault?

Someone is always determined to be at ault inan automobile collision, whether partially or ully.Insurance companies must determine the degree oault to be assigned to each driver so they can adjustat-ault drivers premiums. In Quebec and Ontario,charts or rules are used to determine ault. In Ontario,the Fault Determination Rules are ound in the Ontario

Insurance Act.Te Fault Determination Rules contain examples ocommon types o collisions and explain how to assignault or insurance purposes. Tey help insurancecompanies handle claims promptly and to be air andconsistent. Aer you report a collision to your insurer,your company investigates the collision and thenmakes a ault decision based on these rules.

Te Fault Determination Rules:

Cover more than 40 collision situations, usingdiagrams to show specifc situations.

Can be applied to almost every possible collisionscenario.

Apply regardless o road or weather conditions,visibility, point o impact on the vehicles or theactions o pedestrians.

May fnd you or the other driver wholly or partially

at ault.

I the circumstances show that more than one driverwas negligent (or at ault), both drivers insurancecompanies may become involved in the settlement,based on the degree o responsibility connected to eachdriver. I there is a dispute about responsibility, it maybe necessary to go to court to resolve it.

Visit IBCs website to download a copy o OntariosFault Determination Rules at http://www.ibc.ca/en/

Car_Insurance/documents/brochure/ON-Fault-Determination-Rules.pd.


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How do police charges or convictions afect an insurance companys decision?

I police do not fle charges, it does not mean that theinsurance companies investigating the collision will notfnd one or more o the drivers involved at ault.

For example, i a vehicle was unable to stop on an icyroad and rear-ended another, a police o cer may not

charge either driver. Tis should not be taken as an

opinion about how ault applies to an auto insuranceclaim. In a case like this, the insurer would apply therule stating that any vehicle that rear-ends another isdeemed to be at ault. However, with certain types ocharges, the Fault Determination Rules do not apply.In those cases, ault is determined according to the

ordinary rules o law.

Can ault in an automobile collision be shared?

Yes. Circumstances may show that more than onedriver is partially at ault or insurance purposes.Fault is allocated to each driver based on the collisionscenario in the Fault Determination Rules that most

closely resembles the collision. I a collision is notdescribed by any o the scenarios, then ault is allocatedaccording to the rules o law.

Why do I need witnesses i I am involved in a collision?

It is important to get independent witnesses, i

possible, to support your version o the events that ledto the collision.

Will my rates go up i I am not at ault or the collision?

No. Your rates will not go up i you are 25% or less atault or the collision. However, i you are over 25% atault, it may aect your rating.

Can I recover my deductible when I am not at ault?

No. You are responsible or paying the deductible

regardless o ault. However, in cases involving anuninsured automobile, your insurance company maypursue the owner o the uninsured automobile and

attempt to obtain a judgment against him or her to

recover the claim and your deductible, but this couldtake time.

How does an at-ault collision afect me?

You can be deemed anywhere between 0% and 100%at ault.

I you are ound more than 25% at ault or thecollision, your premium may go up on renewal.However, some companies allow you to maintain your

driving record or premium aer your frst at-aultcollision. o confrm your companys approach andhow your rates will be aected, ask your insurancerepresentative.

In many cases, i you have your frst at-ault collisionaer six or more years without any claims orconvictions, your premium may not change or may

increase by only a small amount. Most companies willchange your driving record to reect the collision. Youwill then need six years o collision-ree driving beoreyou go back to a clean slate.

I this is your second at-ault collision in the last six

years, you can expect your premiums to increase quitesignifcantly.

I you have any convictions or cancellations o apolicy, in addition to an at-ault collision, or are aninexperienced driver with an at-ault collision, youmay be considered a high-risk driver and need to fndan insurer specializing in these types o risks.


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When you are shopping or insurance, always ask theinsurance representative how your premium will beaected aer an at-ault collision.

In addition, remember that when you lend your carto someone, you are also lending him or her your

insurance. I the individual you lent your car to has anat-ault collision with your car, the collision will go onyour insurance record and your insurance premiumcould go up.

What can I do i I disagree with my insurance companys assessment o ault?I you do not agree with your insurance companysdecision and believe the decision does not accuratelyreect the circumstances o the collision, speak to theclaims adjuster handling your fle. Ask which FaultDetermination Rule was applied in your case.

Bring any new inormation to your insurancecompany. Generally, an insurance company will reviseor reconsider its decision on ault only i additionalrelevant inormation is provided. For example, i a

collision occurred in which each driver stated the otherhad gone through a red light, an insurance companywould have little choice but to assign 50/50 ault.However, i an eyewitness confrmed which driverwent through the red light, an insurance companycould review its decision. I your insurance companyreuses to revise its decision and you still disagree,contact your companys complaint o cer. He or shewill guide you through the companys complaint-handling procedures.

What are my rights i I drive without insurance and I am in a collision in Ontario that is not my

ault? Can I sue the at-ault driver and recover my losses rom his or her insurer?

I you drive without insurance, the Ontario InsuranceAct takes away your right to recover any loss or damagerom bodily injury or death rom the other person. Teact also takes away your right to recover damageto the vehicle or its contents rom the other person.

I you are at ault, the other persons insurance companycan sue you to recover the amounts they paid out.

No-ault does not mean no blame. Your best bet isto drive saely. No one can fnd ault with that.

How do accident benefts work?

Accident benefts are required by law in every provinceexcept Newoundland and Labrador, where thiscoverage is optional. o encourage airness, consumerchoice and aordability, your automobile policy oersbasic coverage with options to purchase increasedlimits and additional types o coverage.

With basic coverage, policyholders who do not wantthe higher beneft limits should fnd insurance moreaordable. Only policyholders who require or desirehigher limits pay higher premiums or more coverage.

Under certain circumstances, legislation allowsinnocent victims o vehicle collisions to sue the at-aultdriver or pain and suering and loss o income anduture earnings when the victims accident benefts areelt to be insu cient. A pain and suering lawsuit isallowed only i the persons injuries meet the legislatedverbal threshold, meaning the injured person dies or

sustains a permanent and serious disfgurement and/or impairment o an important physical, mental orpsychological unction. Te court is directed to assessdamages and then to deduct $30,000 ($15,000 or aFamily Law Act claim).

Also, an injured person whose injuries meet thelegislated verbal threshold may sue or 70% o grossincome loss beore trial (subject to a seven-daydeductible), 100% o gross income aer trial, andmedical, rehabilitation and other related costs.

Note: Ontario insureds involved in collisions outside oOntario anywhere in Canada or the United States canchoose to receive, rom their own insurance company,the Ontario benefts or the equivalent o the beneftsavailable to residents o the jurisdiction where thecollision occurred.


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What happens when a vehicle is a total loss?

A vehicle is a total loss when repairs cannot beeconomically or saely carried out; or example, whenrepairs would cost more than the actual cash value othe car.

Actual cash value is the amount necessary to replaceyour vehicle with a comparable used vehicle. Mileage,condition o the vehicle, equipment and average retailselling price are all considered in determining theamount to be paid on the claim.

Your insurance company calculates the vehicles actualcash value including HS, where applicable, and oersyou a cash settlement. It is your responsibility topurchase a replacement vehicle.

From time to time, people believe they have not been

oered a air settlement. An individual can be betterinormed about what is a air settlement by doing someresearch. Check with your local newspapers to seethe asking price o similar vehicles. Car dealers andautomobile trade magazines are also excellent sourcesor comparative pricing. Select fve prices o carssimilar to yours then take the average. You shouldnow have a reasonable ballpark fgure.

Also, i you have completed work on your vehicle thatwould increase the selling price, tell your insurancecompany and provide receipts to help them in

determining your cash settlement. Repairs neededto maintain your car in good running order may notincrease the selling price o your vehicle. For example,i you needed new brakes to operate your vehicle,

it would not increase the selling price because thepurchaser would expect the brakes to be workingproperly. However, an opinion rom the person whoregularly services your car on the condition and retailvalue is helpul. It is preerable to get this opinionin writing.

I, aer you have done your homework, you stilldisagree with the cash oer, go back to your claimsrepresentative and discuss the matter. Advise him orher o the inormation you have gathered and ask howthe amount was determined by the company. I there

is still disagreement, discuss the matter with yourinsurance representative and inquire about taking thematter or an appraisal to be settled.

Under the Insurance Act, you can make a writtenrequest or an appraisal and your insurer will beobliged to participate. Although your insurer mayrequest your participation in an appraisal, youcan choose whether or not to participate. Underthis process, each side will select an appraiser. Teappraisers will try to agree on a value but i theydisagree, they will appoint an umpire to make

a fnal decision.

Why is my car not always repaired with new parts?

Sometimes your car is repaired with new parts,but not always.

Te policy or contract you signed with your insurancecompany calls or repairs with parts o similar kindand quality.

I your vehicle is in its frst production year, there willlikely only be original equipment manuacturer (OEM)parts available to complete repairs. Tese parts are new,o course.

New parts may also include aer-market replacementparts. Aer-market parts can be an over-run rommakers o original parts, or made by manuacturersspecializing in replacement automobile parts. Aer-

market parts approved by the Certifed AutomotiveParts Association meet or exceed OEM specifcationsand are suitable replacement parts.

Regardless o the age o your vehicle, most insurancecompanies will insist that saety-related parts requiredor repairs be new. For example, a 50% worn tirewould be replaced with a new tire and you, as thepolicyholder, are expected to pay or the extra tire lieadded to that wheel. Tis is called betterment, whichwas described above.

As any vehicle ages, it loses some o its value. Tat iswhy the insurance company is justifed in replacingdamaged parts with recycled parts. Tis complies withan agreement in your policy.


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After the claimOntario Mandatory Vehicle Branding Program: What happens i my vehicle is

severely damaged?

On March 31, 2003, the Ontario governmentmandated the branding o all severely damagedvehicles in Ontario.

Te Mandatory Vehicle Branding Program is aimedat making roads saer and countering motor vehicleraud and the. Insurance companies, auto recyclers,salvagers, auctioneers, dealers and individual vehicleowners must assign a brand to vehicles that havebeen severely damaged and report these vehicles to theMinistry o ransportation (MO).

Te programs major objectives are to:

Enhance road saety by ensuring proper repair osalvage vehicles.

Protect consumers in the vehicle marketplace.

Make the use o stolen vehicles more di cult.

Make stolen parts more di cult to re-use.

Minimize the raudulent use o Vehicle

Identifcation Numbers (VINs) rom wreckedvehicles.

Tere are our dierent brands used:

Irreparable a vehicle written o as a total loss thatcan be used or parts or scrap only. Tis vehicle cannotbe driven in Ontario.

Salvage a vehicle written o as a total loss thatcan be used or parts or scrap or repaired, subject toinspection criteria approval branding it rebuilt.

Rebuilt a vehicle that was branded as salvage buthas been rebuilt and inspected in accordance withregulatory criteria.

None a vehicle not given any o the other threebrands because it may have had a damage-relatedbrand applied outside Ontario, it may have beendamaged or rebuilt beore March 31, 2003, the degreeo damage does not meet branding criteria, or thevehicle was never in a collision.

A vehicle could also receive the Stolen VehicleDesignation. Tis can only be assigned by police.Tis designation makes it more di cult or thieves to

register stolen vehicles because it prevents thieves romputting the VINs rom wrecks onto stolen cars.

Te ollowing vehicles are exempt rom the vehiclebranding program: trailers, traction engines, armtractors, road-building machines, bicycles, motor-assisted bicycles, motorized snow vehicles, streetcars,and motorcycles (other than motorcycles that areirreparable) or motor vehicles with a model year o1980 or earlier.


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What i I want to keep my damaged vehicle ater a claim?

When your vehicle is a total loss, the insurancecompany will oer you a cash settlement, then brandand take ownership o your vehicle. I you want tokeep your vehicle and your insurer is willing, yoursettlement will be reduced by the amount the insurercould get rom a salvager or the damaged vehicle.

Beore you decide to keep your vehicle, consider theollowing:

I a vehicle is branded as irreparable, it can onlybe used or parts or scrap. It can never be repaired

and driven on Ontario roads. I a vehicle is branded as salvage, it can be fxed

but must go to an inspection station and pass rigidsaety standards to be reclassifed as rebuilt andused on the road.

It is not recommended that you keep a vehicle thatis branded salvage. Tere have been situationswhere an owner has spent a lot o money havingthe vehicle repaired, only to fnd out later that itdoes not meet the rebuilt standards and cannotgo back on the road.

Branding reduces raud

When you purchase a used vehicle, you can request aUsed Vehicle Inormation Package (UVIP) rom theseller, a driver-and-vehicle-licence issuing o ce, orthe Ministry o Consumer Services. A UVIP has thevehicles registration, history in Ontario and any liensregistered on the vehicle.

Brands are registered by the VIN o the vehicle. Te

brand is displayed on the vehicle permit issued byMO in Ontario or the licensing authorities inother provinces.

I a vehicle was branded as salvage and reclassifed asrebuilt, you know that the vehicle has passed a rigidinspection aer being repaired and is sae to drive.

Tis program greatly reduces raud. Manyunsuspecting consumers have purchased stolenvehicles and later had them seized by the police withlittle hope o recovering the money they paid or thevehicle. Branding oers greater consumer protectionas more and more vehicles are entered into the systemand their histories are tracked. Tis makes it easier totell whether a car has a questionable history.


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Driving in the United StatesYour Ontario automobile insurance policy covers you in Ontario, elsewhere in Canada and in the United States,and in vessels travelling between ports o Canada and the United States.

In order to understand how this works, we must frst examine how your insurance policy applies in Ontario.

Ontario collisions injuries

I you are injured in a car collision, compensation orinjuries may be claimed rom your own insurancecompany, regardless o ault, under your accidentbenefts coverage.

In addition, should your injuries be severe enough tohave met or exceeded a certain level o seriousnessknown as the verbal threshold, it may be possible

to seek urther compensation by suing the at-aultdriver or owner or pain and suering and additionaleconomic losses. In most cases, such claims wouldinvolve two dierent insurance companies one orthe accident benefts claim and another or the lawsuit.In some cases, however, both the accident beneftsclaim and the lawsuit could be payable by the sameinsurance company.

Ontario collisions vehicle damage

o the extent you are at ault in a collision, your claimor damage to your car would all under your ownoptional collision or comprehensive coverage.

o the extent you are not at ault, your vehicle damagewould be claimed under:

Your DCPD, provided the at-ault driver is insuredby an insurance company licensed in Ontarioor one that has fled with FSCO to provide this

coverage (direct compensation claims will not

result in an increase in premiums providedyou are 25% or less at ault, and your coverageautomatically provides a rental vehicle andprotection or damage to non-vehicle equipment);

Your uninsured automobile coverage, i the driverand owner o the at-ault vehicle are identifed, butuninsured; or

Your own optional collision or comprehensivecoverage i the at-ault vehicle cannot be identifed.

U.S. collisions injuries

Your accident benefts are portable throughout Canadaand the United States. Te restriction o being ableto launch a lawsuit only i injuries exceed the verbal

threshold does not apply to collisions outside Ontario.Te law that applies is the law o the jurisdiction wherethe collision occurred.

U.S. collisions vehicle damage

Damage claims in the United States are handled thesame way as they are in Ontario, except that the direct

compensation system described above does not applyoutside Ontario. Vehicle damage caused by an insuredat-ault driver is paid by the insurance companyinsuring the at-ault vehicle, not by your owninsurance company.


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2011 Insurance Bureau of Canada. All rights reserved.

The inormation provided in this brochure is intended or educational and inormational purposes only. Pleaseconsult the appropriate qualifed proessional to determine i this inormation is applicable to your circumstances.

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Insurance Bureau of Canada is the national trade association

for Canadas private home, car and business insurers.

Questions about insurance?

Call us.

British Columbia, Saskatchewan and Manitoba

Toll-free: 1-877-772-3777 ext. 222Hours: M-F 9:00 a.m. 4:00 p.m.

AlbertaToll-free: 1-800-377-6378Hours: M-F 8:00 a.m. 4:00 p.m.

Ontario

Toll-free: 1-800-387-2880Hours: M-F 8:00 a.m. 5:00 p.m.

QuebecToll-free: 1-877-288-4321Hours: M-F 8:30 a.m. 4:30 p.m.

Atlantic

Toll-free: 1-800-565-7189 ext. 227Hours: M-F 8:30 a.m. 4:30 p.m.

www.ibc.ca

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