Auto Insurance FAQ's

Q: What is the difference between an insurance broker and an insurance agent?


An agent works for one company and can only offer you the products of that company. An insurance broker has access to the products of several insurance companies and can find the best combination of coverage, price and service. In other words, an insurance broker works for you.

Q: How do I get a car insurance quote?


Go to, click on the car picture and complete the questions to get an instant quote from numerous companies. You can also call us directly at 1-877-684-6844 and ask to speak with one of our sales brokers.

Q: What is the major function of insurance?


The major function of insurance is to provide a system in which the losses of the few are shared among the many. Insurance can be viewed as a large pot into which all premiums are placed. The pot has to provide for the cost of running the business and the payment of the losses of those who have claims.

Q: What's in a Standard Auto Insurance Policy?


If you own a vehicle in Ontario, you are required to, at the very least, purchase the following automobile insurance coverage:

Third-Party Liability Coverage: This section of your automobile insurance policy protects you if someone else is killed or injured, or their property is damaged. It will pay for claims as a result of lawsuits against you up to the limit of your coverage, and will pay the costs of settling the claims.

Statutory Accident Benefits Coverage:This section of your automobile insurance policy provides you with benefits if you are injured in an automobile accident, regardless of who caused the accident including supplementary medical, rehabilitation, attendant care, caregiver, non-earner and income replacement benefits.

Direct Compensation: Property Damage (DC-PD) Coverage: This section of your automobile insurance policy covers damage to your vehicle or its contents, and for loss of use of your vehicle or its contents, to the extent that another person was at fault for the accident. It is called direct compensation because even though someone else causes the damage, you collect directly from your own insurer, instead of the person who caused the damage.

Note: Coverage under the DC-PD section of your automobile insurance policy only applies if the following conditions are met:

  • the accident took place in Ontario
  • there was at least one other vehicle involved in the accident; and
  • at least one of the other vehicles is also insured by an insurance company that is licensed in Ontario or has signed a special agreement with FSCO to provide this coverage.

If these conditions are not met, then you can make a claim on your optional Collision coverage (if you have it), whether or not you are at fault. If you don't have Collision coverage, you may be able to pursue recovery from the at-fault driver to the extent you were not-at-fault for the accident.

Uninsured Automobile Coverage: Protects you and your family if you are injured or killed by a hit-and-run driver or by an uninsured motorist. It also covers damage to your vehicle caused by an identified uninsured driver.

Q: What is property & casualty insurance?


Property and casualty insurance includes home, car, and business insurance, but not life insurance.

Q: Why are insurance premiums increasing?


Several factors are affecting our insurance premiums. Some of them include:

  • Low return on investment – During the last three decades, investment income, when added to premiums, covered the cost of claims. However, as we all know, investment returns have declined dramatically since the late 90’s. As a result, insurance companies now have far less investment income to offset underwriting losses. Claims – Although the number of automobile accidents has not changed in recent years, the number and cost of injuries have dramatically increased.
  • Fraud – When others cheat, we all must pay. The Canadian Coalition Against Insurance Fraud estimates that 15 to 22% of personal injury claims are fraudulent – costing the industry $500 million a year.
  • Global catastrophes - such as the 1998 Québec-Ontario Ice Storm, the terrorist attacks of September 11, 2001, and the severe flooding in Europe in 2002, resulted in major claims payments. Insurance premiums to other insurance companies – Insurance companies also buy insurance to protect themselves against large claims caused by natural or other disasters. The cost of this “reinsurance” has increased substantially. As a result, insurance companies have increasingly had to pass certain costs on to the consumer.

Q: What is the role of government?


The insurance industry is closely monitored and regulated by both federal and provincial governments to ensure that insurance companies can meet their financial obligations to policyholders. In addition, provincial governments have jurisdiction over market conduct and consumer issues such as rate-setting, sales practices and the conduct of brokers.