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Learn More about Insurance Coverage in Ontario


Automobile liability insurance is financial protection for a driver who, while operating a vehicle, harms someone else or their property. Automobile liability insurance only covers injuries or damages to third parties and their property, not to the driver or the driver's property. This same coverage also applies to the owner of the vehicle should he/she not be operating it at the time of the incident.

Accident Benefits

Yes. Auto accident benefits in Ontario are part of mandatory car insurance coverage.

What are Statutory Accident Benefits?

If you are seriously injured in an auto accident in Ontario, Statutory Accident Benefits pay for expenses not covered by healthcare, to treat you, replace your income, and more.

The Statutory Accident Benefits Schedule, or SABS, for short, is a mandatory no-fault auto insurance coverage in Ontario, and is included with all basic auto insurance policies.

Administered by the Automobile Accident Benefits Service of Ontario, accident benefits are paid through the auto insurer covering your vehicle (or the vehicle in which you were a passenger). If you suffer injuries when hit by a vehicle as a pedestrian or bicyclist, you will have to file a claim with the insurance company of the vehicle that hit you.

Besides the coverages outlined in the table there are other expenses that are covered by this section of the auto policy such as:

Lost Educational Expenses: For those who can’t continue studies in an elementary, secondary, post-secondary or continuing education program as a result of injuries from an auto accident. Covers expenses incurred before the accident, such as for tuition, books, equipment, and lodging, for a maximum benefit of $15,000.

Expenses of Visitors: Reasonable and necessary expenses incurred by some of those closest to you when they visit you during your treatment or recovery. This includes your spouse, children, grandchildren, parents, grandparents, siblings, certain other dependants and guardians, and those living with you at the time of the accident. Expenses can be claimed for a maximum of 104 weeks after the accident, unless injuries are catastrophic.

Damage to clothing, glasses and other belongings: Receive compensation for damaged clothing, glasses and other personal medical devices damaged during the accident. 

Cost of examinations: Compensation for the cost of examinations related to treatments as part of your recovery from an accident.

Accident Benefits for a Passenger

All passengers involved in an auto accident are eligible for accident benefits. Regardless of the type of accident or who was at fault, you will almost always be covered by insurance. You will need to file a claim against the driver’s insurance coverage. The drivers insurance you submit a claim with will depend on the situation.

Direct Compensation – Property Damage Coverage

What is Direct Compensation Property Damage?

Direct Compensation Property Damage (DCPD) is a mandatory component of auto insurance in Ontario, which covers damage to your vehicle and/or the contents of your vehicle where you are deemed not at fault in an accident.

When does DCPD apply?

If you are in a car accident where the other driver is at fault, DCPD ensures that you will be compensated directly through your own insurance company. This means you don’t have to wait on the other driver’s insurance company for a determination. You also won’t have to sue the other driver for damages. You will deal with your own insurance company and be compensated accordingly.

“No fault” insurance today in Ontario means that regardless of fault, you deal with your insurer; it was put in place to speed up the process of receiving payment of your claim. Prior to this definition of no-fault regulation, you would have to wait for all the insurance companies involved to decide who was at fault for the accident in order to get payment.

Of course, your insurer still has to determine if you were at fault so that your premiums can be adjusted (upwards) if it was, in fact, your doing. All Ontario insurance companies use the same fault determination rules for car accidents and property damage claims – rules that apply regardless of weather, road conditions, pedestrian actions, visibility or point of impact on the vehicle, etc.

It should be noted that DCPD will only apply if these 4 conditions are met:

  • The accident happens in Ontario

  • At least 2 vehicles were involved in the accident

  • You are not at fault for the accident

  • Parties involved in the accident are insured by companies licensed in Ontario

Hit and Runs Are Not Covered By DCPD

A hit and run is not claimed under DCPD coverage. If the driver who caused damage cannot be identified, your claim will be paid out through your auto insurance policy.

Collision or Upset Coverage

What Is Collision Insurance?

Collision Insurance in Ontario

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 ground, according to the Financial Services Commission of Ontario.

It covers the cost of the repair or replacement cost of your vehicle if you're involved in an at-fault accident. What if you're involved in a collision and not at fault? In Ontario, if you're not at-fault and you don't have collision insurance you're still covered; the section of your policy that responds in that case is called the direct compensation section.

There is, however, an exception. If you're hit by an unidentified third party, also known as a hit-and-run, even though you're not at fault, that type of loss is paid out under the collision section of your policy.

Is Collision Insurance Mandatory?

While it sounds like a standard form of insurance coverage that is included in your policy, collision coverage is NOT mandatory, but it is recommended, especially if you have a newer vehicle.

Comprehensive Coverage

What is Comprehensive Insurance?

Comprehensive insurance is a coverage that helps pay to replace or repair your vehicle if it's stolen or damaged in an incident that's not a collision. This type of insurance typically covers damage done to your vehicle from things other than collisions, such as: vandalism, disasters, theft, fire, impacts with animals, etc. Comprehensive insurance does not cover any damage as a result of a collision.


Padfield-Nelson Insurance Brokers Limited

149 Main Street South

Mount Forest, ON

N0G 2L0

Phone: 519-323-1864

Toll-Free: 1-877-323-1567


Fax: 519-323-1896


Monday - Friday 09:00 AM - 05:00 PM

Saturday - Sunday Closed


Covering all of Ontario

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