Glossary of Insurance Terms
| Insurance term | What it is | Example |
|---|---|---|
| Liability | Coverage provided in case you are legally liable for injury/death and/or damage property | While driving on icy roads, you lose control and hit another vehicle, and then slide into and damage a building. The person in the other vehicle is injured quite severely and sues you. As well, there is $3500 damage to the building. Your insurance company will pay out any claim for either or both scenarios under this section. |
| Direct Compensation / Property Damage | Coverage for damage to your car, equipment, contents and loss of use of same if you are not deemed responsible for an accident that happens in Ontario | You are stopped at a red light. The person behind you does not stop in time. You have back end damage to your car, and a drill that you rented is also damaged. Your insurance company will pay for both the car damage, and the drill, under this section. |
| Accident Benefits | Benefits provided on every Ontario auto policy which respond to injury/death in event of an auto accident. Options are available to buy up this covereage. | You are hurt in a car accident and require several months of physiotherapy treatment and counseling. You just started a new job and have no benefits. Your insurance company will pay for some of the costs associated with these treatments under this section. |
| Collision | Coverage to repair damage to your car | You are not able to stop in time and rear-end the vehicle in front of you. Your vehicle has extensive damage to the front end. Your insurance company will pay for this damage under this section. |
| Comprehensive | Fire, Theft, Broken Windshield, Vandalism | Your vehicle is parked in your garage while you are out of town. A fire starts in your home and spreads to the garage. Your vehicle is burned and deemed a total loss. Your car insurance company will pay for the car loss under this section. |
| All Perils | Collision and Comprehensive combined; includes coverage if someone in household steals vehicle and causes damage | Your child takes your vehicle without permission and has an accident. The insurance company will pay the damage under this section. |
| Deductible | The amount you pay towards a single claim | You hit a post while driving your car. The total cost of repairs is $4500. If your deductible is $500, then the insurance company will pay $4000, and you pay $500. |
| OPCF 20 (Ontario Policy Change Forms) | Rental Car Coverage | You slide on black ice and hit a guard rail. Your car will be in body shop for 20 days. Your insurance company will pay for a comparable rental car for you to drive while yours is being fixed under this section. |
| OPCF 43R (Ontario Policy Change Forms) | Limited Waiver of Depreciation | Ten months after purchasing and insuring a brand new vehicle, you are involved in an accident and your car is totaled. When the insurance company pays the claim, they will pay you what you originally paid for the vehicle. |
| OPCF 27 (Ontario Policy Change Forms) | Liability for Damage to Non Owned Automobiles and Providing Other Coverage when insured persons drive other vehicles | You fly to Florida for a weeks holiday. While you are there, you rent a car and are involved in a fender bender. Your insurance company will pay to fix the damage to the rental car under this section. |
| OPCF 35 (Ontario Policy Change Forms) | Emergency Road Service | Your car breaks down and you need to have it towed to the nearest garage. Your insurance company will pay up to a certain amount for towing charges. |
| Premium Protector | Accident Forgiveness | You slide on ice and hit a fence. Your company pays to fix your car. When your policy renews, your rates do not go up as a result of this accident. |
Did You Know Your Home Has Three Different Values?
Here are some reasons to help you understand why.