What is considered a commercial vehicle in Ontario?

Many small and large business owners in Ontario, Canada, rely on a fleet of vehicles for commercial purposes. From transporting commercial cargo from one location to the next to carrying tools or equipment and towing a trailer, commercial vehicles play an important role in everyday business activities.

So, what exactly is considered a commercial motor vehicle? Are there specific rules, licences, and insurance policies associated with these types of cars? If you're a new business owner in Ontario who requires a commercial fleet for their business operations, stick around to learn more about what makes these vehicles different from ones used for personal purposes.

What defines a commercial motor vehicle?

According to the Ontario Ministry of Transportation, a commercial motor vehicle is any vehicle that is used to transport goods, passengers, tools, or equipment in exchange for compensation.

Under the Highway Traffic Act, commercial vehicles are subject to certain licensing, registration, types of auto insurance, and routine inspections, unlike those used for personal purposes.

Common commercial motor vehicles

The following vehicles are considered commercial:

• Buses, flatbed trucks, tow trucks, and pickup trucks that have a gross weight over 4,500 kg.
• A vehicle carrying passengers with a seating capacity of more than 10 passengers, taxis, ride-sharing cars, and buses used for commercial purposes.
• Vehicles that operate as part of a business fleet or are ones carrying a hazardous load.

What is the weight of a commercial vehicle in Ontario?

In Ontario, your vehicle will be considered commercial if the gross weight is over 4,500 kg. For pickup trucks, the vehicle must be registered for business purposes and have a weight of 6,000 kg.

Who requires a CVOR certificate in Ontario?

Owning and operating a commercial motor vehicle in Ontario requires you to have a valid Commercial Vehicle Operator's Registration Certificate (CVOR). The purpose of a CVOR is to monitor the driving habits of the driver behind the wheel and ensure that the vehicle is safe to operate at all times. The CVOR certificate must be kept in the vehicle or with the driver at all times.

How can I get my CVOR certificate?

To register for a CVOR in Ontario, you can apply online through the Government of Ontario's website. Note that when applying, you will be charged a fee of $255 and successfully pass a knowledge test.

Once the CVOR is presented to you and your drivers, each of you will receive a rating that outlines your safety performance ranging from (1) Excellent to (5) unsatisfactory.

If you have been rating anything over a 3, you are at risk of having your plates seized, disciplinary letters, cancellation of service privileges, and other consequences. Check out our safe driving tips to brush up on the rules of the road before applying for your registration.

What insurance do I need for my commercial motor vehicle?

Like all other motor vehicles in transit, driving without insurance is illegal. When it comes to commercial cars, there are numerous types of auto insurance policies available when you're renewing car insurance. Here's a closer look:

Commercial auto insurance

Most commonly, business owners with either one vehicle or a fleet of them should consider commercial auto insurance. This insurance not only covers the cars but also the specific hazards and liabilities associated with commercial activities, so you or your employees don't have to worry while you're on the road.

There are mandatory coverage policies that all drivers must purchase, as well as optional plans that seek to further protect your interests in the event collisions occur. These coverages include:

Liability car insurance

Third-party liability insurance qualifies as standard auto insurance in Canada, meaning that it is mandatory for all drivers who intend to operate a car, regardless of what it is being used for. That said, each province and territory is responsible for selecting the mandatory minimum coverage required by all motorists with a licence registered with their government. For example, the minimum liability coverage required for drivers in Ontario is $200,000.

Third-party liability car insurance essentially protects drivers in the event they are at fault for causing bodily harm or property damage to a third party. So, should you have an accident while operating your commercial car while on a delivery, and the other driver is injured, any medical expenses, repair costs, and legal fees will be covered under this policy.

Keep in mind that while the coverage minimum for this policy is $200,000, most drivers opt for a higher minimum, which can go up to 1 million, for added peace of mind when behind the wheel.

Accident benefits coverage

Accident benefits coverage is another mandatory insurance policy required by all drivers with a registered car in the province. In the event that you are involved in a car accident while transporting passengers in your bus, you'll be covered under this policy, no matter who is at fault for the incident.

Accident benefit offers compensation to you and your passengers for expenses such as rehabilitation costs, medical fees, lost compensation, and more, depending on the specifics of your policy and who your insurance company is.

Ultimately, the objective of accident benefits coverage is to ensure that those involved in an accident are able to receive care without financial stress.

Direct compensation - property damage

Direct compensation - property damage, on the other hand, only kicks in if you are involved in an accident where you are found not at fault. However, it is another mandatory insurance policy that all Ontarian drivers must have.

To ensure that you obtain reimbursement for your accident claim as soon as possible, this kind of coverage enables you to communicate directly with your own insurance provider instead of a third-party company.

Uninsured motorist coverage

Uninsured automobile coverage is another essential insurance policy that all provincial driver's license holders must have. This insurance protects policyholders and the people they transport in the case of an accident with another motorist who is uninsured or underinsured. It also provides protection from hit-and-run incidents where the other party flees the scene before you are able to exchange information.

Uninsured automobile insurance covers vehicle repair expenses, medical costs, and more, depending on the specifics listed in your policy.

Comprehensive car coverage

Continuing further into supplementary insurance options, you may want to think about comprehensive car coverage. Comprehensive insurance covers your commercial car from damage caused by non-collision events. For example, if a tree crashes on your automobile in a storm, it is damaged in a public parking space, or it is stolen from your business, your comprehensive coverage will cover any necessary repairs or replacements. This is especially important for those who rely on their car for business purposes day-to-day, and it could help you prevent loss of income should you need to file an insurance claim for losses or damages.

Keep in mind that comprehensive insurance is a type of policy that requires you to pay a deductible before your insurance will begin to kick in. Deductible amounts can vary between insurance providers. That said, they commonly range from between $500 and $1000, which you are able to decide when purchasing your insurance policy for the year.

Remember, while opting for a higher deductible could help you save some money on your insurance premium throughout the year, you will need to pay more out of pocket in the event you need to file a claim. So, finding the right balance between savings and potential future costs is something you need to consider while choosing your deductible amount.

Collision car coverage

Collision auto insurance covers commercial cars in the case of a collision which results in damage, no matter who is deemed at fault. Accidents involving other drivers and objects are often covered under this policy.

For example, if one of your employees accidentally dents one of your vehicles while out on a delivery, you can make an insurance claim with your company in order to have it repaired. Remember that, like comprehensive insurance coverage, collision car coverage requires policyholders to pay a deductible out of their own pocket before the insurance company will pay for the cost of repairs.

Again, finding a balance between an affordable premium and your deductible amount is recommended. Only opt for a higher deductible payment if you can comfortably afford to do so.

Accident forgiveness

The last optional insurance policy that you may want to add to your overall car insurance portfolio is accident forgiveness. Whenever you are involved in an at-fault accident, the cost of your insurance will increase, which could put a strain on your finances. However, with accident forgiveness, you can prevent paying a higher premium for your first at-fault accident.

Remember, however, that this is a one-time policy, meaning that should you have this supplementary insurance coverage and get into a car accident where you are found fully or partially at fault, the coverage will be valid only for that one accident. Afterwards, should you get into an accident where you are held responsible, your premium is likely to increase with your insurance company.

That said, if you purchase accident forgiveness insurance and maintain a clean driving record, you can keep this as a security net in your insurance portfolio for as long as you are not at fault for any accidents that you may be involved in in the future.

If you have any questions regarding commercial auto insurance, we recommend speaking with your insurance company or working with an experienced broker like BrokerLink. When purchasing car insurance, remember to shop around for premiums and coverage options. Don't forget to ask whether you qualify for any insurance discounts as well!

Insure your commercial motor vehicle with BrokerLink today!

Navigating the world of insurance can be confusing, especially as a business owner. With multiple auto insurance policies available, minimum requirements, and frequent Ontario car insurance changes, working with an experienced broker can make a world of difference and ensure that you are comprehensively covered.

Luckily, BrokerLink is a leading insurance broker in Ontario with years of professional experience working with business owners just like you. If you're interested in purchasing car insurance for your commercial car, you're more than welcome to come visit us at one of our many offices across the province.

If you aren't able to make it in for a face-to-face meeting, give us a call during business hours, as we'd be more than happy to walk you through the process over the phone. Alternatively, you can get a free insurance quote using our online quote tool.

1-866-724-2372

FAQs about commercial vehicles in Ontario

What is a registered gross weight?

Registered gross weight refers to the weight of the car and any tools, equipment, and other items that it is carrying. Before you're able to register your vehicle and get your licence plates, you'll need to have a record of your gross weight.

To determine the gross weight of your car, van, bus, or truck, you can drive to a truck stop and weigh it there. Keep in mind that the weight of your car can not be more than the weight indicated by the manufacturer.

Do I need a yellow sticker on my truck in Ontario?

If your truck or trailer weighs more than 4,500 kg, you will need to have a yellow sticker placed on your vehicle unless it is being used for personal reasons.

Do you need a specific driver's licence to operate a vehicle for commercial use?

Yes, a special driver's licence is required when operating a car for commercial reasons. These licences range from Class A to Class F, depending on the type of car. When applying for your licence, make sure you understand the requirements needed to successfully pass your knowledge and skills test. You can find this information on Transport Canada's website.

If you have any questions, contact one of our local branches.