The insurance coverage that is mandated by law will only cover potential damages, including property damage, injury, and death, to others in case of an accident, which is referred to as liability insurance, and physical damage to yourself. Additional insurance coverage is optional and is purchased at an additional monthly fee, and includes collision insurance which covers damage to your car, and comprehensive insurance which covers theft, vandalism, and damages from natural disasters.

In Ontario, all automobile insurance is considered “no-fault,” which means that no matter which party is responsible for the accident and ensuing damages, each party’s respective insurance provider will pay the respective damages. This means that your medical bills and other insurance provisions can be paid out immediately, rather than waiting for the insurance adjusters to investigate and determine who is at fault for the accident. However, if you are eventually deemed as being at fault, your insurance premiums may rise.

However, there are some things that your insurance provider may not automatically cover, even if you have the legal right to compensation. This can include loss of past and future earnings, the cost of future care, and extended medical care needed due to the aggravated effects of a pre-existing condition. Most people involved in a collision may have no idea what they may or may not be entitled to, and for this reason many people choose to obtain legal representation to protect their interests during the proceedings.