Understanding Ontario Personal Auto Insurance Rules
Under the Ontario Compulsory Automobile Insurance Act, all motor vehicles operated on public roads must be insured under the standard Ontario Automobile Policy (OAP 1) owner's form approved by the Financial Services Regulatory Authority of Ontario (FSRA).
Mandatory Standard Coverages in Ontario
1. Third-Party Liability (TPL)
Protects you if your vehicle injures someone or damages property. Ontario's legal minimum is $200,000, but brokers universally recommend carrying $1,000,000 to $2,000,000 due to modern claim costs and litigation.
2. Statutory Accident Benefits Schedule (SABS)
Provides no-fault medical, rehabilitation, attendant care, income replacement, and caregiver benefits if you or passengers are injured in a collision, regardless of who was at fault.
3. Direct Compensation - Property Damage (DCPD)
Covers damage to your vehicle and its contents to the extent you were not at fault for the accident. Your own insurance carrier handles your repair claim directly.
4. Uninsured Automobile Coverage
Protects you and your family if you are injured or killed by an uninsured driver or an unidentified hit-and-run driver, and covers vehicle damage caused by identified uninsured motorists.
Common Ontario Endorsements (OPCF)
- OPCF 20 (Coverage for Transportation Replacement): Covers rental car or alternative transportation expenses while your vehicle is being repaired after a covered claim.
- OPCF 27 (Liability for Damage to Non-Owned Automobiles): Extends your physical damage coverage to rental cars across Canada and the United States.
- OPCF 43 (Removing Depreciation Deduction): Waives vehicle depreciation on new vehicles for a specified term (typically 24 to 36 months) in the event of a total loss.
- OPCF 44R (Family Protection Coverage): Protects you if an at-fault third party carries insufficient liability insurance to cover your bodily injury damages.