Mandatory Insurance Requirment

• The insurance act stipulates that each licensed vehicle must maintain at least $200,000 in liability coverage. Liability insurance responds when you or a driver of your vehicle causes property damage or bodily injury to a third party. The act also stipulates you must carry Accident Benefits coverage which responds if you or a driver are injured in an accident, as well as Uninsured Motorist coverage if you are in an accident where the other party does not maintain adequate insurance.
  
  

Regulated Insurance Rates

• All insurance companies selling auto insurance in Ontario are regulated by the Superintendent of Insurance who works for the Financial Services Commission of Ontario. The Superintendent requires each insurer to submit its rates to his office for approval. Once approved, the rates cannot be altered in any way, including discounts or credits. The outcome is that every auto insurance policy is rated using a formula overseen and approved by the government.
  
  

No-Fault Insurance System

• Ontario automobile insurance is operated as a no-fault system. No-fault insurance stipulates that in the event of an accident, your insurance company will pay any amounts you are owed, regardless who was at fault in the accident. The purpose of no-fault insurance is to simplify and speed-up the length of time it takes to receive restitution, as no determination of blame needs to be undertaken. Only in the most serious of injuries will an auto insurance claim need to proceed through the court system.
  
  

All-comers Rule

• In Ontario, every insurance company must accept every applicant for insurance, with very few exceptions. This rule ensures that insurance companies are not able to select only the best risks, leaving those with driving infractions and accidents without coverage. Every company must file rates for every type of driver and vehicle, not simply the ones they would like to attract. If submitted, an insurer must provide a quote using those filed rates to the applicant.
  
  

Use of Information

• Insurance companies can only use information that appears on a standard Ontario Automobile Insurance Application when determining rates. Insurers are prevented from using credit history, bankruptcy, employment status, whether you own a credit card, how long you have lived in your current home, not-at-fault accidents, whether your vehicle is owned or leased and whether there was a period of time where you had no automobile insurance coverage. Only driving activities can be used to determine rates.