Glossary of Terms
No Fault Automobile Insurance System
Ontario has a "no-fault" automobile insurance system. This does not mean no one is at fault in an accident. The term "no fault" insurance simply means that if you are injured or your car is damaged in an accident, you deal with your own insurance company, regardless of who is at fault. You do not have to pursue the at-fault driver for compensation. Similarly, if any passengers in your car are injured, then each passenger who has a car insurance policy of their own will approach their own insurance company for compensation. The driver of the other car involved in the accident will claim compensation from his or her own insurance company.
Someone is always deemed to be "at-fault" in a car accident, whether partly or fully. The law requires insurance companies to assign the percentage of fault to each driver involved in the accident. This is done by using the "Fault Determination Rules".
Third Party Liability
Protects you if someone else is killed or injured or their property is damaged. It will pay for legitimate claims against you up to the limit of your coverage, and will pay the costs of settling the claims.
Provides benefits if you are injured in an automobile accident regardless of who caused the accident. These benefits include: supplementary medical care, rehabilitation and attendant care; a tax free benefit for wage earners or self employed; an allowance to those who have no income from employment; an allowance when a caregiver is injured; and funeral expenses when a person dies in an accident.
Uninsured Motorist Coverage
Provides coverage if you are injured or killed by an uninsured motorist or by a hit-and-run driver. Also provides coverage for damage to your automobile caused by an identified uninsured motorist.
Direct Compensation Property Damage
Under certain conditions, covers you in Ontario for damage to your automobile and to property it is carrying when another motorist is responsible.