Car Insurance in Ottawa

Is car insurance mandatory in Ottawa?

First, you may be wondering, Am I required to purchase car insurance in Ottawa? The answer is yes. Car insurance is compulsory everywhere in Canada, and that includes the city of Ottawa. Auto insurance regulations are set provincially, which means in order to drive legally in Ottawa, you must comply with the minimum coverage requirements set by the province of Ontario. The four types of coverage that the Ontario government requires all drivers to have is as follows:

• Uninsured motorist coverage
• Liability car insurance
• Accident benefits coverage
• Direct compensation - property damage coverage

If you need help understanding how mandatory coverage works, get in touch with an insurance broker in Ontario. One of BrokerLink’s licensed Ontario insurance brokers can explain the importance of purchasing coverage that complies with local laws, as well as how each type of mandatory coverage can protect you.

Remember: driving without car insurance is against the law in Ottawa

A quick reminder that driving without car insurance in Ottawa is against the law. A BrokerLink insurance advisor can explain exactly what can happen if you are caught driving without a valid insurance policy in Ottawa. Be warned that Ontario has some of the harshest penalties for uninsured driving. These include fines of up to $25,000 for a first offence, fines of up to $50,000 for a second offence, a 25% surcharge on top of any fines incurred, the impoundment of your vehicle, and the suspension of your Ontario driver’s licence for up to one year. Given that the cost of purchasing a single policy would likely be worse than a fine for a first offence, the best decision you can make is to contact an insurance broker and buy coverage.

The four types of mandatory car insurance coverage in Ottawa

The four main types of mandatory car insurance coverage in Ottawa are as follows:

Third party liability coverage

Third party liability coverage is a type of mandatory auto insurance coverage that protects drivers who cause car accidents. If you are found liable for a collision, and that collision results in bodily injury or property damage, third party liability coverage can help pay for the associated costs. These costs could include medical bills, repair bills, or even legal fees. Ottawa drivers are required to have no less than $200,000 in third party liability coverage at all times.

Accident benefits coverage

Accident benefits coverage will help if you get into an accident that results in bodily harm. If someone is injured in a collision, accident benefits can pay for the cost of medical attention that isn’t covered by healthcare. This could include rehabilitation, physical therapy, or prescription medication. Accident benefits may also pay for lost income due to the victim’s injury or funeral fees if someone involved in the accident passes away.

Direct compensation - property damage coverage

Direct compensation - property damage coverage can help pay for the cost of repairing your car if it is damaged in a car accident. As long as you are not liable for the accident, you may be eligible to file a claim and receive a payout directly from your insurance company to help cover the repair costs.

Uninsured automobile coverage

Uninsured automobile coverage is a type of coverage that is designed to protect drivers who find themselves in accidents with certain types of drivers. Specifically, uninsured automobile coverage can pay for the cost of the accident if you collide with a driver who does not have car insurance, does not have sufficient car insurance, or flees the scene of the accident and thus you never learn their identity or exchange insurance information.

Extra coverage in Ottawa and across Ontario

Many drivers find that basic car insurance coverage is not enough. Thankfully, there are several other types of coverage that you can purchase through an insurance broker. Whether you are buying an Ottawa motorcycle insurance policy or an Ottawa car insurance policy, the following types of additional protection may be available to you:

Collision coverage

Collision car coverage can help pay to repair or replace your vehicle if it is severely damaged in an accident. Whether you caused the accident or not, you might be able to claim collision coverage. Plus, it can cover damage caused by a wide range of accidents, including those with other vehicles, animals, and grounded objects. Keep in mind that collision car coverage is usually optional for Ottawa drivers but might be mandatory if you lease or finance your car, however it is best to check the terms and conditions of your lease agreement to make sure.

Comprehensive coverage

Comprehensive car coverage is another form of extra protection that you can add to your Ottawa car insurance policy. This coverage is also known as parked car insurance and it protects against all kinds of risks outside of collisions. For instance, if your car is damaged in a fire or hailstorm or if it is stolen by a thief, comprehensive car coverage can protect you. This type of coverage only protects against the risks that are stated in your policy. Most of the time, these risks are fire, theft, vandalism, explosions and riots, falling and flying objects, and weather-related incidents. As with collision coverage, your leasing or financing company may require you to purchase comprehensive coverage for the duration of your agreement.

Accident forgiveness coverage

One more type of optional car insurance coverage popular among drivers in Ottawa is accident forgiveness. Accident forgiveness is additional coverage that can be added to your car insurance policy as an endorsement to protect your driving record and help prevent your insurance premium from increasing if you have an at-fault accident claim. Note: coverage and eligibility vary by province.

Waiver of depreciation

A waiver of depreciation is important if you are insuring a new vehicle. While not a legal requirement, this type of coverage can save you a lot of money if your vehicle is totalled. In the event of a total loss of your vehicle, the payout will nearly equal the value of your car before it was totalled without depreciation. Otherwise, you may only receive a payout that factors in depreciation, which would be far less.

Loss of use coverage

Loss of use coverage is another type of optional coverage that can be added to Ottawa car insurance policies. It will pay for you to take alternative modes of transportation, ranging from renting a car and taking public transit to hiring ride shares and taxis, if your car is damaged and needs to be repaired. During the time that your car is in the shop, your loss of use coverage can cover the additional transportation costs incurred.

It pays to shop around for auto insurance in Ottawa

When buying Ottawa car insurance, one of the best practices to adopt is to shop around for coverage. The way to do this is by enlisting the help of an Ottawa insurance broker. One of the licensed insurance brokers at BrokerLink will make finding you the perfect policy a top priority. We will reach out to our contacts at some of Canada’s top insurance companies to inquire about their products and obtain insurance quotes on your behalf. After that, we will compare the products to find the best possible auto insurance policy for your needs.

You can always trust that your BrokerLink insurance advisor has your best interests at heart. We specialize in providing objective, unbiased insurance advice. At the end of the day, all we want is to find you a great policy at a price you can afford.

Overall, when you take advantage of the expertise and resources of a professional insurance broker in Ottawa to help you shop around, you are much more likely to find quality, affordable coverage.

How insurance companies calculate auto insurance rates in Ottawa

Insurance companies in Ottawa each have their own risk-calculation formula to determine what a customer’s premium will be. That said, many take into account the same factors. To help you understand how rates are calculated and what your rate is likely to be, read through the list of factors influencing Ottawa car insurance premiums below:

• Where you live
• Age
• Where and how often you commute
• Gender
• Vehicle type
• How you use your vehicle
• Driving record
• Driving experience
• Past claims
• Prior insurance coverage
• Number of kilometres you drive
• Type of coverage on your policy
• Your deductible

Please note that BrokerLink insurance advisors do not set premiums. Rather, insurance companies do that. However, we can still help you find a great policy, bind coverage, compare your options, and even provide you with a free car insurance quote. Reach out today to request a free car insurance quote now. It will only take five minutes! If you’re looking for another type of insurance, like business insurance in Ottawa or Ottawa boat insurance, we can also give you a free quote.

We’re in your community

BrokerLink has been a proud member of the Ottawa community since our founding in 1991. That means that for over 30 years, we have been helping Ottawa drivers find quality car insurance coverage. Even more than that, we take it upon ourselves to give back and get involved in every community we operate in. Learn more about our local initiatives by contacting BrokerLink today.

Contact us

Want to learn more? Let us be your resource for all things car insurance. From start to finish, our brokers handle the legwork to make sure you walk away satisfied. Get a quote today or give our brokers a call today and we’ll find the car insurance coverage that works best for you.

Get an auto insurance quote [phone]

FAQs about car insurance Ottawa

When do car insurance rates go down in Ottawa?

Car insurance rates typically start to drop after a driver gains 10 years of accident free driving experience. However, this isn’t a hard and fast rule. This is because car insurance premiums depend on tons of factors beyond age. These include gender, driving record, claims history, location, local laws, local weather events, etc.

How do I renew my Ottawa car insurance policy?

Renewing car insurance in Ottawa is relatively simple and can be done by getting in touch with your provider or broker. Either type of insurance professional can help you renew your policy. Nowadays, car insurance plans in Ottawa can usually be renewed online, over the phone, or in person.

If I get into an at-fault accident in Ottawa, will my car insurance premium go up?

Typically, yes. If you cause a car accident, your insurance rates are likely to go up the next time that your policy is renewed. If this was your first at-fault accident and you have accident forgiveness coverage, then your rates may stay the same since insurance providers do not raise your rates if you have this type of coverage. It is worth noting that if you get into an accident and are not found to be liable, then your rates may not change at all.

If my phone is stolen from my car, does Ottawa auto insurance cover me?

No. Even if you have comprehensive car coverage in your Ottawa car insurance policy, it is unlikely to cover you. Comprehensive coverage will cover you if your vehicle is stolen but not if non-permanent items are stolen from your car. For instance, if personal belongings, such as a smartphone, laptop, or wallet, are stolen from your vehicle, your comprehensive coverage may pay for any necessary repairs that result from the break-in. However, it will not pay to replace the items that were stolen. Further, if your policy does not feature comprehensive coverage then even the damage related to the theft will not be covered. It is worth noting that comprehensive coverage may cover you if a permanent or built-in component of your car is stolen, like the steering wheel, catalytic converter, or stereo. For coverage for these personal items, it may be worthwhile to ask your home insurance provider if they will cover the replacement of these items.

Do I need an Ontario driver’s licence to buy auto insurance in Ottawa?

Yes, you must hold a valid driver’s licence in Ontario if you want to buy car insurance in Ottawa. One of the first pieces of information that an insurance agent will ask for is your driver’s licence. You will also need a licence in order to register your vehicle in the province, which is also required to drive legally.

What types of insurance can car insurance brokers in Ottawa help me find?

An Ottawa insurance broker can help drivers find all kinds of car insurance coverage. This includes mandatory coverage in Ottawa, like third party liability coverage and accident benefits coverage, as well as optional coverage. For instance, an insurance broker can help you find a policy with accident forgiveness, comprehensive coverage, collision coverage, loss of use coverage, or waiver of depreciation coverage.

How can I find cheap car insurance in Ottawa?

You can find cheap car insurance by buying multiple auto insurance policies at the same time or bundling home and auto insurance policies. Other tactics that can help you save money on car insurance include maintaining a clean driving record, installing winter tires on your car, completing a driver’s education course, choosing high deductibles, and getting rid of coverage you no longer need. You can also try to qualify for hybrid or electric car discounts, employment-based discounts, telematics discounts, group insurance discounts, and more.

If someone borrows my car and gets into an accident, whose insurance applies?

If someone has an accident in your car, your insurance probably applies. This is because insurance follows the car, not the driver. So if a friend accidentally rear-ends the vehicle in front of them while driving your car, it is your third party liability coverage that would likely apply.

Do speeding tickets impact car insurance rates in Ottawa?

Yes, speeding tickets can impact car insurance rates in Ottawa. These tickets tend to stay on a driver’s record for three years, which means your rates could be higher for three years due to a speeding ticket. The number of speeding tickets on your record, as well as the severity of the speeding ticket and how many kilometres above the speed limit you were travelling, can influence how much your rates go up.

How much should I pay for car insurance in Ottawa per month?

This answer is different for each driver, as insurance rates vary significantly between policyholders. Ultimately, the amount that you should pay for car insurance in Ottawa depends on factors like your claims history, age, driving record, gender, home address, and the type of vehicle you drive. To get a free Ottawa car insurance quote, reach out to an insurance broker.

What is the cheapest car to insure in Ottawa?

There isn’t one type of car that is cheaper to insure than all others in Ottawa. If insurance rates were solely based on the type of vehicle being insured, then this might be the case. But the reality is that insurance rates are dependent on many other factors beyond the make and model of your vehicle. Thus, if you are looking to receive the best rate possible on your Ottawa car insurance plan or want advice on how to reduce your premium, contact an insurance broker near you.

Who shops for car insurance in Ottawa?

Shopping for car insurance is available to anyone! Individual drivers can choose to shop for car insurance on their own. However, they can also ask a broker to do it for them. Insurance brokers act as middlemen between insurance companies and customers and can help drivers shop around and find quality policies.

What are the different types of car insurance available in Ottawa, Ontario?

A few of the different types of car insurance available in Ottawa, Ontario include the basics like third party liability coverage, accident benefits, direct compensation, and uninsured automobile coverage. On top of this, customers can purchase extra protection like collision, comprehensive, accident forgiveness, loss of use, waiver of depreciation, and roadside assistance coverage. Ultimately, there are car insurance policies for all types of drivers, from high-risk drivers to first-time drivers.

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