Common Auto Insurance Terms
Whatever your ride - finding the auto insurance policy that suits you best is our goal! You can leave the details up to us, but here are the terms you are likely to run into while reviewing your policy documents.
We Understand You to Protect You
If you are going to own a car and want to drive it in Canada, you are required by law to have an auto insurance policy. While you can get a basic insurance policy anywhere, there are many coverage options available to you through different insurance companies. Your broker will get to know you and your needs, and will find the insurance options that best suit you.
The McConville Omni Personal Insurance team believes that every driver should fully understand the details of their coverage – and we'll help you do that. We’ll explain all of the options available to you, make sure you receive the discounts you’re entitled to, and show you how all of the elements of your insurance policy will work together to protect you.
- Cars, Vans, SUVs, Trucks
- ATVs & Dirt Bikes
- Classic Vehicles
An insurance policy for your car, motorcycle or any other vehicle is a contract between you and the insurance company. If you experience an accident (collision), theft, or other damage, this contract protects you against financial loss.
This is the amount you pay out-of-pocket for each claim before your insurance policy kicks in to cover the costs of the claim
This is the amount of money an individual or business pays for an insurance policy. This is the amount you pay for the policy. Policyholders may choose from a number of options for paying their insurance premiums. Some insurers allow the policyholder to pay the insurance premium in installments—monthly or semi-annually—while others may require an upfront payment in full before coverage starts.
An insurance endorsement is an amendment or addition to an existing insurance contract which changes the terms or scope of the original policy. An endorsement may be used to add, delete, exclude or otherwise alter coverage. The insurance endorsement is a legally binding amendment to the insurance contract.
An insurance claim is a request by a policyholder to an insurance company for coverage or compensation for a covered loss or policy event. The insurance company validates the claim and, once approved, issues payment to you, or to a party on your behalf.
Do you need to report a claim? View Your Options
Collision coverage is primarily used to provide coverage for physical damage to the vehicle if you are found to be wholly or partially at fault for the cause of the incident. If you have this coverage, it can pay for the cost of repairing or replacing your vehicle up to its actual cash value, if you are found to be at fault. Without this coverage, physical damage to your vehicle would not be covered if you were to file a claim with your insurance company.
Comprehensive coverage can pay for the cost of repairing or replacing your vehicle up to the actual cash value if it is damaged by other unexpected situations—such as falling or flying objects, vandalism, fire, theft or attempted theft, a natural disaster, or an animal encounter.
- All Perils
Coverage combines Collision and Comprehensive coverage into one coverage. In addition to the coverage offered under Collision and Comprehensive, it also insures your vehicle against loss or damage should it be stolen by someone living in your home or by someone you have hired to drive, service or repair your vehicle.
Liability only covers injuries or damages to third parties and their property, not to the driver or the driver's property. Liability does provide coverage for you or other insured persons if someone else is killed or injured or their property is damaged in an automobile accident. It will pay for legitimate claims against you or other insured persons up to the limit of your coverage, and the cost of settling claims.
Additional Coverage Options
OPCF’s - An add on item included under the Ontario Policy Change Forms (OPCF), that represent additional coverage options that can be added as complimentary to your comprehensive and collision coverage. These are the most common additional coverage options, but there are many more. If you have questions about the ones your currently have, or want to inquire about adding something new, connect with your broker to discuss your options!
- OPCF #20 – Loss of Use
If you have an accident where you are at fault, OPCF 20 provides coverage for transportation replacement and rental car coverage.
- OPCF #27 – Damage to Non-Owned Autos
This is coverage that allows your coverages and deductible to be transferred to a replacement vehicle anywhere in Canada or the US, for renting a vehicle. You would use this if you have had an accident and needed a rental car for the foreseeable future. It essentially transfers your coverages to your rental vehicle, so that you have the same coverages you are used to. You only need to have OPCF 27 on 1 vehicle on the policy, if the vehicles share a policy number.
- OPCF #39 – Accident Waiver / Forgiveness
OPCF 39, also referred to as accident protection or accident forgiveness, will protect your driving record or preferred driver rating in the event of your first at fault accident. This means that your car insurance premiums will not increase as a result of an insurance claim as long as you remain with the same Ontario insurance company.
- OPCF #43 – Waiver of Depreciation Coverage
This coverage can be put on a new vehicle (with less than 5,000 kms) and it stays or your policy usually for 24 months. If you have this coverage and your vehicle is totaled or stolen and it is not recovered, the insurance company gives you what you paid for the vehicle and not the depreciated value.
- OPCF #44R - Family Protection Coverage
Even though auto insurance is mandatory in Ontario, there may be instances where you are involved in an accident with another driver who does not have as much or adequate coverage. OPCF endorsement protects you if you are involved in an accident and the at-fault driver does not have enough coverage to compensate the injured victims to cover the costs of their medical bills and recovery. With this endorsement, you can file a claim to recover the remaining outstanding damages. As a McConville Omni client, we include this in your policy because we believe that it is just that important in protecting you.
- Claims Free Discount
If you’ve been an excellent driver and have no accidents on record, you may qualify for a claims (sometimes called collision) free discount. Typically, if you have not filed a claim within the last 6 years, and you have not been at fault of any incidents, you would qualify for this additional discount. What you may also qualify for, by having your claims free discount, is accident forgiveness. Some insurance companies will let you keep your claims free discount even if you have an accident, as a testament of their appreciation to your typically safe driving techniques.
- Winter Tires
Insurance companies are obligated to offer a winter tire insurance discount to all drivers. You can save 5% on your car insurance if you have 4 snow tires installed on your vehicle throughout the winter months. Some insurance companies have specific rules around the exact dates you need to have the tires on for, but most just want to ensure that you not only have the tires, but that you have them installed.
- Multi-Line Discount
Bundling gives you the opportunity to receive a “multi-line discount” on your insurance. Discounts range from 10 to 15 percent. This variation depends on the type of policies you are bundling, the number of years you have been insured, and the insurance company you are with. The most common type of bundle includes a property and a vehicle, such as your homeowners insurance bundled with your vehicle(s). However, this is by no means the limit to your options. There are many different types of bundles available, and we are able to build one with almost any personal insurance policy.
If you’ve recently left the workforce, you may qualify for a discount. The simple fact you may not need to drive to work daily can be a huge discount alone.
Your quote. Your way.
At McConville Omni, your London & St. Thomas insurance company, we take the time to get to know you – so that we are fully confident that we are bringing you the very best insurance coverage for you, your family and your business.