Does Insurance Send A Registered Letter To Cancel Car Coverage

Whether you're shopping around for auto insurance, your policy is well-nigh to expire, or you're looking to salve money on your current policy, it is important to understand how your policy works.

The following information is designed to help you understand your auto insurance policy and all the various parts that make upward your coverage, and to aid you yous to purchase the insurance coverage that meets your needs.

This is not a legal document and does not in whatsoever mode change or supplant your automobile insurance policy. For more detailed information, brand certain to read your Ontario Auto Policy.

If you do not take a copy of your Ontario Auto Policy, you may ask your insurance agent, banker, or company representative for a copy, or download a re-create of the standard policy .

Auto Insurance - It's the Constabulary!

Ontario police requires that all motorists take auto insurance.

Fines for vehicle owners, lessees, and drivers who practice not carry valid auto insurance can range from $v,000 to $50,000.

If you are found driving without valid motorcar insurance, y'all tin have your commuter'southward licence suspended and your vehicle impounded.

If you are bedevilled of driving without valid auto insurance, your insurance visitor may consider you a "high-hazard" commuter and charge yous higher premiums or refuse to sell you insurance birthday. If you are injured in an accident while driving or occupying an uninsured vehicle:

you may not be entitled to receive income replacement and/or not-earner benefits; and
you may not be immune to sue the at-fault driver for compensation as a result of injuries received in the accident.

More importantly, if you are found to be at error for an accident causing injury or death to another person, you may be held personally responsible for his/her medical costs and other losses.

Size: ## kb Where Can You Buy Auto Insurance?

You have several options. Yous may purchase auto insurance from a licensed:

insurance broker;
insurance agent; or
directly author.

Insurance brokers sell insurance on behalf of a number of dissimilar insurance companies and volition find you the best rate only from those companies. You have the right to ask your broker to provide you with the names of all the companies he or she represents.

Insurance agents mostly represent only one insurance company.

Direct writers are insurance companies that sell their own insurance products directly to consumers.

There are several ways to detect an insurance agent, broker, or straight writer:

There are many insurance companies who sell car insurance in Ontario, and then information technology is important to do your homework. In that location are six things you should think almost when selecting your amanuensis, broker or insurance visitor. All are important:

Licensed: Remember, insurance can only be sold past a licensed broker, amanuensis or insurance company in Ontario. To notice out if your insurance broker is licensed to do concern in the province, visit the Registered Insurance Brokers of Ontario website. To detect out if your insurance agent or insurance company is licensed to do business in the province, visit the Fiscal Services Committee of Ontario website.
Rates: Many companies sell insurance policies and rates vary greatly from one to another, then it pays to shop around. Get at least 3 quotes from dissimilar straight writers, brokers and agents. In that location is more data that will tell you how insurance rates are set and how to save on motorcar insurance.
Coverage: While basic auto insurance policies are standardized to some extent, it's still important to compare policies in terms of coverage equally the particular amounts and range of coverage (for example: deductibles, limits and optional coverages) may differ from visitor to visitor.
Claims or Accident Forgiveness: You may want to question what the company'southward practices are if you have an at-fault claim or under what circumstances your insurance would not exist renewed. About insurers have some blow forgiveness provisions, or you tin can buy an endorsement to receive this coverage. Insurers can no longer utilize a minor at-fault blow that occurs on or afterwards June 1, 2016 meeting certain criteria to increase your premiums. The criteria include that no payment has been made past whatsoever insurer, that there are no injuries, and that amercement to each car and holding were less than $two,000 per car and were paid by the at-fault commuter. This provision is limited to one modest accident every three years.
Service: When making your insurance purchasing decision remember, it is not always wise to buy the cheapest insurance policy you lot tin find. Store around to compare service as well every bit toll.
Comfort: Whether yous buy information technology from an agent, a broker, or direct from the company, you should feel comfortable with your insurance purchase. Select an insurance representative who takes the time to answer your questions. Make sure that the amanuensis, broker or company will be like shooting fish in a barrel to reach if you have a question or demand to file a claim.

Approaching Your Banker, Agent or Insurance Company

In gild to quote you a premium, or sell you an machine insurance policy, your broker, agent or insurance visitor volition crave some basic information well-nigh:

you;
your vehicle;
your driving record;
your electric current broker, agent or insurance company; every bit well as
any other drivers.

It's a practiced thought to accept all this data on hand before y'all contact your insurance representative. Use this printable version Size: ## kb of the tabular array beneath to assist you.

Y'all must be accurate and honest, and update your insurance representative if your circumstances change. Your car insurance rates are based on the information you have given to your banker, amanuensis, or insurance company. An insurance company has the right to cancel your policy if the information you lot have given is not correct or complete. Non-disclosure or misrepresentation on your role of any of these facts could cause your rates to go up. Furthermore, it could return your policy nix and void, and leave you lot without protection in the event of a merits.

Note: Motorcar insurance companies and their agents/brokers are prohibited from requiring that you lot consent to the collection and use of your credit information before providing an insurance quote or offer to renew a policy. They are also prohibited from using credit data when they respond to requests for quotes, or process applications for automobile insurance or renewals of policies.

Remember, it is not but the driver but also the owner of the vehicle who is liable when an accident is acquired with his or her vehicle. This puts a heavy onus on owners to ensure that they requite simply licensed and competent drivers permission to operate their vehicle!

Your Motorcar
Make:	Model:
Yr:	Altitude driven one way to work:
Annual mileage:	Do you use your automobile for business? Y N
Vehicle Identification Number (VIN):
Your Current Broker, Agent, or Insurance Company and Coverages/Deductibles and Rates
Name:	Company:
Phone:	Insurance policy number:
Coverage:	Deductibles:
Your current annual insurance rate:
You (as primary commuter)
Gender:	Nascence Appointment:
Marital Status:
Number of years you have been licensed to drive in Canada or the U.S.:
Your driver's licence number:
Has your policy ever been cancelled for non-payment or whatever other reason?
first-time driver:
Did you receive a Commuter Training Certificate? Y Northward
List details of all accidents and claims in the past 6 years:
List details of all traffic violations (not including parking tickets) in the past three years:
Coverages:	Deductibles:
Other (Occasional) Drivers
Gender:	Birth Appointment:
Marital Status:
Number of years licensed to drive in Canada or the U.Due south.:
Appointment of receiving G1, G2 and Chiliad license:
Did they receive driver preparation? Y N	Exercise they have a Commuter Training Certificate? Y N
List details of all accidents and claims in the past 6 years.
List details of all traffic violations (not including parking tickets) in the by 3 years.

Be prepared to ask some questions of your ain and so that you tin can compare quotes:

How do I reach you if I need to enquire a question or file a merits?
Are at that place whatsoever optional coverages I should consider?
Delight interruption down the premium costs to me for each optional coverage I have selected or receive every bit function of my standard auto policy.
How volition my premium be affected if I am in an accident?
What discounts does the insurance company offering?

Other of import facts to think when dealing with your insurance company include:

If y'all want to modify insurance companies and cancel your existing policy before it expires, you may have to pay a penalty. You may instead desire to have the new policy start one time your existing policy expires.
You should receive your policy renewal from your insurance visitor approximately 30 days earlier it expires. This allows you to change your policy, examine policy changes, or shop around.
If you don't want to renew your policy, you should notify your banker, agent, or insurance company immediately. Don't simply stop making payments: that will event in cancellation of your policy because of non-payment and possibly put you in a college take chances category.
Your insurer tin abolish your policy for not-payment of premiums, then long as information technology follows certain procedures. Every bit required by the Insurance Human action, the insurer must give you 15 days' notice of termination by registered mail or v days written notice of termination if information technology's personally delivered. If you pay the outstanding premium before the cease of the detect menstruation, the insurer may, but is not required to, go on the policy in force. If the insurer does not receive your payment before the terminate of the notice menstruum, your policy will exist cancelled for not-payment.
If in that location is a lapse in your coverage due to cancellation of your policy considering of non-payment of premiums, insurance companies may then accuse you higher premiums for a future policy.
Your automobile insurance policy requires that whatsoever accident involving injury or property damage, be reported to your insurance company within seven days, regardless of who is at fault. If you are unable to study within seven days, you must report it as before long as possible after the accident.

This content has been moved to www.frao.ca . Visit https://www.fsrao.ca/consumers/auto-insurance/understanding-automobile-insurance#policy to update your bookmarks.

Your Automobile Insurance Policy

Your insurance company is responsible for providing you with the insurance coverage summarized on the Certificate of Automobile Insurance you receive each year on renewal or when you purchase insurance, and for which y'all pay a premium.

Your Certificate of Automobile Insurance:

lists the vehicles that are insured
lists the coverages purchased, including any optional coverages yous accept selected
provides a description of how you were rated for the premiums charged, and
indicates the menstruum during which you lot are covered by insurance.

It is of import that you read this certificate. You lot only take insurance coverage for a vehicle if your Certificate of Car Insurance shows a premium for that vehicle or shows that the coverage is provided at no cost.

What'south in a Standard Auto Insurance Policy?

If y'all own a vehicle in Ontario, y'all are required to, at the very least, buy the following automobile insurance coverage:

Tertiary-Party Liability Coverage:

This department of your automobile insurance policy protects you if someone else is killed or injured, or their belongings is damaged. Information technology will pay for claims as a result of lawsuits against you upward to the limit of your coverage, and will pay the costs of settling the claims. By police force you must carry a minimum of $200,000 in Third-Party Liability coverage but options exist to increase the minimum amount.

Statutory Accident Benefits Coverage:

This department of your automobile insurance policy provides you lot with benefits if you are injured in an automobile accident, regardless of who acquired the blow, including supplementary medical, rehabilitation and attendant care, caregiver, non-earner and income replacement benefits. Options exist to increase most of these coverages.

Direct Compensation - Holding Damage (DC-PD) Coverage:

This section of your motorcar insurance policy covers damage to your vehicle or its contents, and for loss of use of your vehicle or its contents, if another person was at error for the accident. It is called direct compensation because even though someone else causes the impairment, you collect directly from your own insurer.

Note: Coverage under the DC-PD section of your automobile insurance policy only applies if the following weather condition are met:

the blow took identify in Ontario;
there was at least one other vehicle involved in the blow; and
at least ane of the other vehicles is also insured past an insurance company that is licensed in Ontario or has signed a special understanding with FSCO to provide this coverage.

If these conditions are not met, then you tin can brand a merits on your optional Collision coverage (if you have it), whether or not you are at fault. If you don't have Standoff coverage, you may exist able to pursue recovery from the at-fault driver.

Uninsured Automobile Coverage:

Protects y'all and your family if you lot are injured or killed by a hitting-and-run driver or by an uninsured motorist. It also covers harm to your vehicle caused by an identified uninsured commuter.

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Increasing Your Liability and Accident Benefits Coverage

In addition to the mandatory minimum coverages that are required by constabulary, you may buy higher liability limits under your Third-Party Liability Coverage, as well as increased Accident Benefits Coverages. You have choices and flexibility over optional or increased coverages and the price you pay for auto insurance. These options permit yous to customize your policy to better suit your needs.

Your insurance representative will exist able to assist y'all determine what level of coverage is all-time for you.

Increased Third Party Liability Coverage:

While you are legally required to carry a minimum of $200,000, y'all may desire to increase this coverage. The cost to increment your Third-Party Liability coverage to $500,000, $1 million or $2 1000000 is small in most cases.

Optional Accident Benefits Coverages:

You may also want to consider increasing your Statutory Accident Benefits coverage past buying any or all of the optional benefits listed below.

Income Replacement Benefits: If you cannot work every bit the result of an automobile accident, y'all may be eligible for basic weekly income replacement benefits of 70 per cent of your gross income upwardly to $400. If this is not enough to cover your electric current after tax income level, you lot may want to consider buying optional income replacement benefits to increment your maximum weekly benefit to $600, $800 or $1,000. When considering the corporeality of coverage you lot volition demand, keep in mind you lot are required to get-go merits wage loss benefits from a disability program yous have purchased or workplace benefits that you lot accept admission to.
Medical, Rehabilitation and Attendant Care Benefits:
For policies issued or renewed on or after June 1, 2016, the standard maximum amount for medical, rehabilitation and attendant care expenses, such as physiotherapy, chiropractic treatment or an aide to assistance yous if you accept been seriously injured is $65,000. If yous are catastrophically injured, the standard maximum is $1,000,000. You can buy optional benefits which will cover up to $130,000 in medical, rehabilitation and bellboy care expenses for not-catastrophic injuries, or an additional $1,000,000 for catastrophic injuries, bringing the total for catastrophic injuries to $2,000,000. There is also an optional do good for medical, rehabilitation and attendant care expenses for all injuries that will increment the combined not-catastrophic benefit to $i,000,000 and the combined catastrophic benefit total to $2,000,000. If you lot purchase both the optional medical, rehabilitation and attendant care benefit for catastrophic injuries and the optional benefit for all injuries, the total benefit amount for a catastrophic injury will exist $3,000,000.
Keep in mind that many health care expenses are not covered by OHIP, or only partially covered, including physiotherapy and chiropractic handling, mobility devices (crutches, wheelchairs), modifications to your home and car that y'all may require, and other specialized appurtenances and services. Modest injuries may only require a few thousand dollars in treatment. The most serious injuries (brain injuries, amputations) are permanent and may require hundreds of thousands of dollars in specialized goods and services on an ongoing basis. You lot may demand the services of an attendant 24 hours a day. Review whatever extended health care program you have access to, such as through work, to assistance y'all determine how much coverage you require.
Caregiver Benefits: If you are not employed, are providing care full-time to dependants like children or aging parents, and can no longer provide that intendance as the consequence of an automobile accident, y'all may be eligible for caregiver benefits if you need to hire someone to care for your dependants. The maximum corporeality for caregiver benefits is $250 per week for the showtime dependant, plus $50 per week for each additional dependant. The standard coverage can merely exist claimed by those who are catastrophically injured in an auto accident. You can extend coverage so that it tin be claimed for all injuries by purchasing an optional benefit. If you take children y'all need to consider who will expect later on them if you are injured in an car accident.
Housekeeping and Dwelling house Maintenance Expenses: If you are unable to perform your usual housekeeping or domicile maintenance duties, you may be eligible for these benefits if you need to rent someone to perform the duties. The maximum do good payment is $100 per week. The standard coverage can only be claimed by those who are catastrophically injured in an machine accident. You tin can extend coverage so that it can be claimed for all injuries by purchasing the optional benefit. If you normally exercise the cleaning and maintenance of your habitation, you need to consider who will look after these things if you are injured in an car accident.
Death and Funeral Benefits: In the event that you die as a upshot of an auto accident, the standard amount which volition be paid is $25,000 to your eligible spouse, $x,000 to each dependant, and a maximum of $half dozen,000 for funeral expenses. If you buy optional benefits, you can increment these amounts to $50,000 to your eligible spouse, $xx,000 to each dependant, and $8,000 for funeral expenses.

Other Optional Coverages

Options exist to purchase whatsoever of the other additional coverages and benefits listed below.

Dependant Care Benefits: This optional benefit is not provided in a standard auto insurance policy. Optional dependant care benefits encompass upwards to $75 per week for the first dependant and $25 for each additional dependant only tin only be claimed if you were employed at the time of the accident, are not receiving a caregiver benefit, and accept to pay for additional childcare expenses as a result of the accident.
Indexation: This optional benefit is not provided in a standard auto insurance policy. If purchased it provides for an almanac adjustment for inflation for Income Replacement, Medical, Rehabilitation and Attendant Intendance and other benefits, determined according to the Consumer Price Index of Canada.

If you lot have benefits from your employer or another policy, you may already have some level of coverage for some or all of the optional benefits listed above. You should consider these benefits every bit y'all review your coverage options.

Summary of optional blow benefits coverage available for policies issued
on or afterward June 1, 2016

Coverage	Options bachelor to increase your benefits
Medical, Rehabilitation and Attendant Care benefits ‐ for non‐catastrophic injuries	Increase the do good for medical, rehabilitation and attendant intendance including assessment costs for not-catastrophic injuries to $130,000.
Medical, Rehabilitation and Attendant Care benefits ‐ for catastrophic injuries	Add together an boosted $1,000,000 for medical, rehabilitation and attendant care benefits including assessment costs for catastrophic injuries, for a total of $2,000,000.
Medical, Rehabilitation and Attendant Care benefits – for all injuries	Increase the do good for medical, rehabilitation and attendant intendance including assessment costs for non-catastrophic injuries to $ane,000,000 and the benefit for medical, rehabilitation and attendant care including assessment costs for catastrophic injuries, to $2,000,000. You may purchase both the increased coverage for catastrophic injuries, and this increased coverage for all injuries. If and so, you will increase the benefit for non-catastrophic injuries including assessment costs to $1,000,000 and the benefit for catastrophic injuries including cess costs to $3,000,000.
Caregiver do good	Make the amounts bachelor in your standard policy for catastrophic injuries (up to $250 per week for the first dependant plus $50 for each additional dependant), available for all injuries.
Housekeeping and Domicile Maintenance expenses	Make the amounts available in your standard policy for catastrophic injuries (up to $100 per week), bachelor for all injuries.
Income Replacement benefit	Increase the weekly limit to $600, $800 or $1,000.
Death and Funeral benefits	Increment the amounts provided in your standard policy to a $50,000 lump sum to an eligible spouse; $20,000 lump sum to each dependant; maximum $viii,000 for funeral benefits.
Indexation benefit – applicable to income replacement benefit, non‐earner benefit, caregiver benefit, and medical, rehabilitation and bellboy intendance do good	Almanac adjustment for aggrandizement according to the Consumer Cost Index for Canada.

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Extra Coverage for Loss or Harm to Your Vehicle

In add-on to the standard policy coverages you may also buy extra coverage for loss or damage to your vehicle including:

Specified Perils Coverage:

This coverage pays for losses caused past one of the post-obit perils: burn down; theft or attempted theft; lightning, windstorm, hail, or rising water; convulsion; explosion; riot or civil disturbance; falling or forced landing of an aircraft or parts of an shipping; or the stranding, sinking, called-for, derailment or standoff of any kind of transport in, or upon which an insured vehicle is being carried on land or h2o.

Comprehensive Coverage:

This coverage pays for losses, other than those covered by Collision or Upset, including perils listed under Specified Perils, falling or flying objects, missiles and vandalism.

Collision or Upset Coverage:

This coverage pays for losses caused when an insured vehicle is involved in a collision with another object, including another vehicle, or rolls over. "Object" includes: another vehicle or a trailer that is attached to the vehicle that is covered by your insurance policy; the surface of the ground, and any object in or on the footing.

All Perils Coverage:

This combines Collision or Upset and Comprehensive coverages. In add-on, it covers loss or damage caused if a person who lives in your home steals the vehicle that is covered past your insurance policy. All Perils also covers you if an employee who drives or uses, services or repairs that vehicle, steals it. For example, if you lot take your vehicle to a garage for repairs and an employee involved in the repair of your vehicle steals information technology, All Perils would cover you.

Note: A deductible may use to all of the above coverages.

Optional Policy Endorsements

Additional optional enhancements, likewise known as policy endorsements or Ontario Policy Change
Forms (OPCF), are special agreements that allow you to change, add or reduce the amount of coverage for certain situations.

The six most common policy endorsements are:

Rented or Leased Vehicles (OPCF 5):

This endorsement extends coverage to a vehicle that y'all drive, only that is endemic by a leasing company.

Transportation Replacement (OPCF 20):

This coverage, also referred to as "Loss of use", covers the cost of a rental vehicle while your vehicle is being replaced or repaired, if the damage or loss is caused by a peril for which you are insured.

Liability for Damage to Non-Owned Automobile(southward) and Other Coverages (OPCF 27):

This endorsement provides concrete damage coverage to vehicles that you lot may operate but do not personally own – such as a vehicle that you lot have rented or borrowed – field of study to a deductible. It likewise provides Liability, Accident Benefits, Uninsured Automobile and Direct Bounty-Property Damage coverages in specific circumstances.

Removing Depreciation Deduction (OPCF 43):

This coverage removes the insurer'due south right to deduct depreciation from the value of your vehicle when settling a claim for loss or damage caused by a peril for which you are insured.

Family Protection Coverage (OPCF 44R):

This coverage protects yous, or an eligible member of your family, to the aforementioned limits as your Third-Party Liability coverage if yous are involved in an automobile accident where you are not at error, with someone who carries less insurance, no insurance, or is an unidentified driver (due east.1000., hit and run).

Added Coverage to Offset Tort Deductibles (OPCF 48):

This endorsement reduces the deductible associated with court awarded compensation for pain and suffering by $x,000 for non-Family Police force Human action claims and by $5,000.00 for Family unit Constabulary Act claims.

Please keep in mind that these are simply some of the many policy endorsements available for purchase. Ask your banker, amanuensis or insurance company which policy endorsements would benefit yous.

Exclusions in Standard Machine Policy

Recognize that:

Mechanical failure or breakdown, rusting, wear and tear, freezing or explosion within the engine and damage to tires, are non covered unless they result from an insured peril (such as a standoff).
Your insurance company is immune to deny payment for loss or damage acquired to the vehicle in an accident, if yous or anyone you let bulldoze your vehicle:

was unable to maintain proper control of the vehicle because you lot (or he and she) was driving under the influence of alcohol or drugs; or
is bedevilled of one of the post-obit Criminal Lawmaking offences (or any similar offences under any other constabulary in Canada or the Usa) relating to the utilize, care, or control of the vehicle:

causing expiry or injury by criminal negligence,
dangerous operation of a vehicle,
failure to stop at the scene of an accident,
driving a vehicle when impaired or with more than 80 mg of alcohol in the blood,
refusal to provide the police with a jiff sample,
causing injury when driving a vehicle while impaired or with over 80 mg/100ml of alcohol in the blood, or
driving the vehicle while disqualified from doing so.

Except for certain accident benefits, there is no coverage for anyone, including passengers, if:

Your vehicle is driven past a person without your consent, or past someone specifically excluded from your policy past the OPCF 28A (Excluded Driver Endorsement).
The vehicle is used to carry explosives or radioactive materials.
The vehicle is used equally a taxicab, jitney, or sightseeing vehicle, or to carry paying passengers such as with a ride-sharing service.

If you are intending to participate in a ride-sharing service as a driver, you should check with your auto insurance representative to ensure you lot accept proper insurance that protects the driver, passenger and others.

What are Underwriting Rules?

When shopping for auto insurance, or when trying to renew your auto insurance policy, proceed in mind that an insurance company'southward underwriting rules volition affect whether or not you lot can obtain insurance - or go on to be insured - with that insurance visitor.

Check with your banker, agent, or insurance visitor to detect out what your company's underwriting rules are and how they may affect yous.

While underwriting rules differ from company to company, these are some of the more common rules:

whether you or drivers in your household have had more than a certain number of driving convictions or at-mistake accidents;
whether you've had an car insurance policy cancelled a number of times because yous failed to pay your premium; and
whether y'all've failed in the past to provide correct or consummate data when applying for auto insurance.

All underwriting rules used by insurance companies must be filed with FSCO.

In one case FSCO has reviewed and approved these rules, insurance companies may not use other rules to deny you lot coverage.

If an insurance company refuses to sell you an insurance policy, or to renew your policy, the visitor must advise you in writing of which rule (or rules) it has used to deny coverage to you.

Underwriting rules that do not comply with the Insurance Deed or the regulations, such as those which are contrary to public policy, are prohibited. These include rules which deny insurance to individuals based on such factors as:

credit history,
physical or mental disability,
where you live or the location of the vehicle, and
whether you are newly licensed or a driver new to Canada.

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High Risk Drivers

Although an individual insurance company may pass up to sell you automobile insurance if its approved underwriting rules determine you to be a "loftier risk," the insurance industry every bit a whole cannot refuse to sell yous basic insurance.

High-risk drivers are those drivers who have had a number of convictions or at-fault accidents, had policies cancelled because they haven't paid their premiums, or have other risk-related characteristics.

The Facility Clan, an insurance pool that all motorcar insurance companies belong to, is an insurer of last resort, which makes auto insurance available to high-adventure drivers who are unable to find automobile insurance in the regular market. As well, there are a number of "not-standard" insurers that specialize in insuring loftier-risk drivers.

For more information visit the Facility Clan website or phone call their Cost-free number: 1-800-268-9572.