What is uninsured automobile coverage?
At a glance: Uninsured automobile insurance protects you if you’re involved in an accident with an uninsured motorist or with a driver who commits a hit-and-run.
While automobile insurance is mandatory in Ontario, it is still possible that you might be involved in an accident with someone who does not have insurance. The good news in this situation is that your own car insurance policy automatically includes protection for you in the form of uninsured automobile coverage. The bad news is that it might not provide enough coverage for you and your family.
Tip: Increase your limits for additional protection
To be further protected in case of an accident with an uninsured vehicle, there is Family Protection Coverage available, which usually provides up to $1 million in coverage. This option can provide additional compensation when the $200,000 limit does not fully cover your claim.
Example: If you’re in an accident with an uninsured driver who is found to be at-fault and the total damages are $550,000, the uninsured automobile coverage would pay only $200,000. If you have Family Protection Coverage added to your auto policy, it would cover the remaining $350,000 in damages.
The Family Protection Coverage option is usually quite affordable and does not add much extra to your auto premiums.
How does uninsured automobile coverage work?
Every car insurance policy in Ontario must include uninsured automobile coverage in order to protect all of us from those driving without proper insurance. It comes into effect when the owner or driver of an uninsured vehicle is at fault for a collision that causes bodily injury or death to you or your family. This section of your own insurance policy offers compensation up to $200,000 in damages due to an accident caused by an uninsured vehicle in Ontario (this amount varies in other provinces.) This mandatory coverage also applies when you are in an accident caused by an unidentified motorist, often called a hit-and-run driver.
Have questions about uninsured automobile coverage?
Feel free to speak with one of our auto insurance brokers about protection from uninsured drivers or any aspect of your auto policy. For free advice and no-obligation quote on auto insurance, contact Mitch at 1-800-731-2228 or email us at firstname.lastname@example.org. We’d be happy to help you.