Comprehensive insurance is one of the numerous forms of coverage available to you, and it is not required in Ontario. It safeguards your car from threats other than a collision, such as fire, theft, vandalism, and the elements.
You could, for example, lodge a claim with your insurer to pay the cost of repairs if your vehicle was stolen and later located and returned to you.
We’ll go over what this form of insurance is, how much it costs, and when you might need it in this blog.
What insurance coverage is mandatory in Ontario?
Liability coverage, direct compensation, uninsured automobile coverage, and accident benefit coverage are the forms of motor insurance required by law in Ontario. It’s the very minimum you need to keep yourself and your loved ones safe.
Is it compulsory to have comprehensive insurance?
The advantage of owning and driving a car is currently enjoyed by millions of Indians because to rising disposable incomes, abundant vehicle availability, and simple purchasing procedures.
Driving, on the other hand, is both a privilege and a responsibility. Unfortunately, despite strict traffic rules, government measures, and legislation like the Motor Vehicle Amendment Act of 2019, India’s road accidents remain a key developmental issue. According to the Transport Research Wing of the Ministry of Road, Transport & Highways’ Road Accident Report, 449,002 road accidents occurred in India.
As a result of these issues, the Motor Vehicles Act of 1939, as revised in 1988, requires all vehicles driving in public space in India to have a motor vehicle insurance policy. Please note that while comprehensive coverage for one’s vehicle is not required (though highly recommended), having at least third-party car insurance is required under this act.
While the Motor Vehicles Act is the most significant reason to drive in India with auto insurance, it is not the only one. The following are four important reasons why automobile insurance is required in India.
1. Coverage for Damaged Vehicles to Avoid Pocket-Burning Automobile Repair Expenses
Automobiles are not only costly to purchase, but also to maintain. A minor ding or break in your windshield caused by a cricket ball can potentially cost you hundreds of dollars.
Have you ever pondered what would happen if you slammed into a parked automobile while trying to save a stray dog while driving on the road? You will very certainly be held accountable for the damage, but if the owner of the damaged automobile has at least third-party car insurance, their insurance company will cover the repair costs, insulating you from culpability, and vice versa.
Car insurance will protect you against the financial risk of unforeseeable events occurring while you are driving or even when your car is parked, resulting in unexpected obligations.
2. Medical Treatment Coverage in the Event of an Accident or Injury
When a person is injured in an on-road collision, they will be admitted to the hospital, which will result in not only a stressful scenario but also high medical expenditures.
When you have third-party insurance, the insurance company will pay for the injured person’s care, ensuring that they receive the full treatment required for the unintentional accident and relieving you of financial responsibility as the driver/owner.
3. Providing financial security in the event of a disability
While automobile insurance ensures that the insurance company pays for a person’s medical treatment in the event of an accident or injury, in the sad event that the wounded person becomes permanently incapacitated, the insurance company will compensate the owner/driver financially.
4. Financial compensation to the family in the event of a tragic death
While traffic accidents result in a lot of injuries, they also result in a lot of deaths. According to the Ministry of Road, Transport and Highways, 151,113 people died in accidents in India in 2019.
Car insurance also provides monetary coverage in cases when the owner/driver, who was the family’s sole breadwinner, died in a deadly road accident, as their death would not only cause tremendous grief but also put the family’s finances in jeopardy.
The insurance company’s monetary reimbursement in these events assures that the deceased’s family or nearest kin can not only fulfill their daily necessities but also survive in times of instability.
What happens if you don’t have comprehensive insurance?
Property damage liability insurance, which is needed by law, does not cover your car in any manner. If you don’t add comprehensive and collision coverage to your auto insurance policy, your vehicle will be uninsured.
Collision coverage is the only option to submit a car insurance claim for damage or total loss if you’re at fault in an accident. You’ll have to pay out of pocket if you don’t have it.
If your car is hit by an uninsured motorist, you can file a collision claim, and your auto insurance company will pay for your repairs, minus your deductible, before pursuing restitution from the liable party. That’s a lot easier than trying to get the uninsured party to pay for your damages out of pocket, which could lead to you filing a lawsuit against the other party.
What insurance is mandatory for car?
In India, motor vehicle insurance is required for a variety of reasons. It becomes even more critical in light of the huge number of motor vehicle accidents that occur in India, and the rising number of accidents is a cause for concern.
According to India’s Motor Vehicles Act, all vehicles operating in public spaces must be covered by a motor vehicle insurance policy. Even when opting for the most basic insurance policies, policyholders must have at least ‘third party liability’ automobile insurance coverage.
In the event of an accident caused by the car owner or another person operating the other vehicle, third-party coverage is required. It’s vital to keep in mind that vehicle insurance may or may not cover damage caused by the owner.
On July 1, 1989, the Indian Parliament modified the Motor Vehicles Act of 1988, which evaluated all areas of transportation vehicles. The act includes provisions for conductors’ licenses, driver’s licenses, vehicle registration, vehicle control utilizing permits, traffic rules, liabilities, violations, insurance coverage, and penalties.
As a result, all vehicle owners are encouraged to keep their insurance paperwork on them at all times. However, most individuals wonder why automobile insurance is required, and this question is frequently ignored.
Is comprehensive insurance mandatory for new cars?
Currently, only third-party coverage is required at the time of vehicle purchase, while OD with accident riders has been primarily considered a bonus offering.
Is insurance mandatory for government vehicles?
The New Motor Vehicle Bill, which was passed by the Cabinet, will make third-party insurance essential for government-owned vehicles. “The Motor Insurance Act explicitly provides that all vehicles plying on the road must have insurance,” says the bill. There is no distinction between government and private cars.
Can I have collision without comprehensive?
Drivers should consider acquiring a variety of various types of auto insurance. Comprehensive and collision coverage are two forms of vehicle insurance coverage that are available as options. Some drivers may question whether they are truly necessary because they are optional.
However, for many drivers, the answer is yes. That’s because they cover various things, and each one offers crucial loss protection.
Is comprehensive insurance is the legal name for full coverage?
When you drive, your liability insurance will cover damage to other vehicles and injury to other individuals. Liability insurance is included in full-coverage policies, as well as supplemental coverage for damage to your own car.
In most states, you must obtain automobile insurance, but the minimum coverage requirements are usually restricted to liability coverage. Although full coverage a catchall term for plans that cover comprehensive and collision damage is never required by state law, it may be required by your lender if you lease or finance your vehicle.
Is liability insurance required by law?
Most states mandate liability coverage, which is subject to limits, or the maximum amount your insurer will pay. A automobile accident can cost a lot of money. It’s a good idea to double-check that you have enough insurance to protect yourself.