Insurance can be confusing. That’s why CMIB always provides insurance advice that is easy to understand.

Likely the most misleading terminology that could be used, someone involved in an automobile accident in Ontario is always deemed fully, partially, or not at fault. The term “no-fault” refers to the accident benefit section of the auto insurance policy.

This section of the policy provides coverage for loss of income, medical rehabilitation, attendant care, caregiver, housekeeping, funeral, and death benefits as they relate to injuries sustained by the occupants of a vehicle involved in auto accident.

This section of the policy will respond regardless of fault, hence the term no-fault.

When an insured loss occurs on a contract of insurance, there is generally a deductible applied. This is stated in your policy documents and may alter based on the type of coverage.

For example, a standard property insurance deductible is $1000, but water related losses may have $2000 deductible. This is the share you contribute as the policyholder. When referencing auto insurance, it is important to realize that losses involving other motorists or pedestrians or property damage to others are required to be reported regardless of if the damage is under your listed deductible. You may save premium if you choose a higher deductible.

In Ontario the owner of the vehicle is required to insure it. The owner’s policy (OAP 1) generally lists drivers that are regular operators of the vehicle.

There may be an occasion where you need to lend your vehicle. Provided the operator holds a valid operators licence and has your permission as the owner, they can drive your vehicle, BUT they are driving on your insurance. This means, any losses that occur can and will be rated against you as the owner.

The auto insurance contract does require you disclose regular operators and drivers residing in your household without their own car and insurance. Failure to do so may create a material change in risk after an unlisted driver causes a claim, which could result in the cancellation of your policy.

YES. If you receive a moving violation from a police officer (this does not include red light and speed enforcement camera violations as well as parking tickets), this will impact your insurance premium.

If you fight a ticket and the “points” are waived, you still have a rateable conviction on your driving record. Points are reserved for use by the Ministry of Transportation in Ontario. If you collect a certain number over a certain period, they can bring you in for a stern discussion or suspend your licence. Your insurer will not care if your points were dropped or lowered as you still have the conviction on your driving record.

A conviction goes on your driving record once you have been found guilty of the action (either by not challenging it or paying the fine) and remains on your abstract for three (3) years from that date, not the date of the offence. Most Canadian provinces and many of the USA states have a reciprocal arrangement with Ontario, so an out of province ticket may still appear on your Ontario driving abstract.