Auto Insurance Terms

 

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

 

Glossary of Auto Insurance Terms

The definitions appearing in this Glossary are provided solely for general informational purposes and are intended to help provide a better understanding of the terms used in this website. They are not intended to be complete and accurate descriptions of all the specific terms, conditions and exclusions applicable to your insurance policy. The definitions contained in the actual policy shall govern.

A-

ACCIDENT - An unexpected event, which happens by chance and is not expected in the normal course of events.

ACCIDENT BENEFITS - If you’ve been injured in an accident, regardless of who caused it, accident benefits cover expenses not covered by OHIP like rehabilitation, caregiving and loss of income. 

ATTENDANT CARE BENEFIT - Pays for expenses incurred for an aide or attendant to look after you if you have been seriously injuried in an auto accident.

 

B-

 

C-

 

CAREGIVER BENEFIT - If you are providing full-time care to dependants and can no longer provide that care as the result of an auto accident, you may be eligible for caregiver benefit to reimburse you for your expenses to hire someone to care for your dependants.


CATASTROPHIC INJURY - : Is a serious and life-threatening injury, with the full definition set out in regulation. It may involve the loss of use of limbs or complete loss of eyesight as well as other injuries as defined in regulation. In Ontario there is a higher level of benefits available when the injury is catastrophic. If you suffer an injury in an accident, you can apply and be assessed for a determination of whether your injury qualifies as "catastrophic"  via this link


COLLISION OR UPSET COVERAGE - When your vehicle is involved in a collision with another vehicle or object (or rolls over), this benefit is intended to pay for its repair or replacement.

COMPREHENSIVE COVERAGE - This benefit is intended to repair damage to your car not arising from an accident, such as falling or flying objects and vandalism.

 

D-

DEATH AND FUNERAL BENEFIT - If you die as a result of an auto accident, the death benefit provides a lump sum payout to your spouse and your dependant(s); the funeral benefit provides a lump sum payout to cover the cost of your funeral expenses.

DEDUCTIBLE - An agreement included in your policy for you to pay the first portion of any loss.

DEPENDANT CARE BENEFIT - If you are employed and have dependants (i.e. people relying on you for financial support), this optional benefit is intended to pay additional expenses incurred for their care. These dependants may include, for example, your children or elderly persons in your care.

DIRECT COMPENSATION - PROPERTY DAMAGE (DCPD) COVERAGE - Covers damage to your vehicle or its contents if 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. The accident must also occur in Ontario and both drivers must be insured by an insurance company licensed in the province.

 

E-

F-

G-

H-

HOUSEKEEPING AND HOME MAINTENANCE BENEFIT - If you are unable to perform your usual duties due to your injuries, this benefit pays for reasonable and necessary additional expenses for someone to complete your usual duties.

 

I-

INCOME REPLACEMENT BENEFIT - If you cannot work as the result of an auto accident, you may be eligible for basic weekly income replacement benefit of up to $400. This benefit commences after one week.

 

INDEXATION BENEFIT - This optional benefit provides for the automatic adjustment of the income replacement benefit, non-earner benefit, attendant care benefit or medical and rehabilitation benefit according to the Consumer Price Index for Canada to compensate for inflation.


INDEPENDANT INSURANCE BROKERS - Independent brokers are licensed, independently operated firms who offer choice between the products of several insurance companies, along with impartial, professional advice and advocacy in the marketplace. Consumers should have access to independent, professional advisors, who provide advocacy and choice

 

J-

K-

L-

LIABILITY COVERAGE - If you are found to be at fault in a car accident, this benefit is intended to insure you against the costs of claims or lawsuits made against you.


LOSS OF USE COVERAGE - In car insurance, Loss of Use coverage will have the insurance company pay for the use of a rental car while the insured’s car is being repaired.

 

M-

MEDICAL AND REHABILITATION BENEFIT - Covers the cost of reasonable and necessary medical and rehabilitation expenses (e.g., physiotherapy, prescriptions) that are not covered by OHIP or your disability insurance plan.


MINOR INJURY - Minor injuries include parains and strains, contustions and lacerations, or whiplash injuries. If you are deemed to have suffered a minor injury in an auto accident, your medical and rehabilitation benefits will be fixed at a maximum limit of $3,500, regardless of any optional increased benefits you have purchased, please refer to their full regulations via this link

 

N-

NON-CATASTROPHIC INJURY - Minor Injuries (sprains, whiplash) and more serious injuries (broken bones, severe strains)

NON-EARNER BENEFIT - If you are not employed and suffer a complete inability to carry on a normal life as a result of an injury from a car accident, non-earner accident benefits can be paid out for the first six months after your injury.

 

M-

O-

OPCF 44R - Covers you for the difference between the at-fault driver’s Third Party Liability limit and your own Third Party Liability limit if someone with less liability coverage than you injures you in an accident.

 

P-

Q-

R-

S-

T- 

THIRD PARTY LIABILITY - Protects you when someone is injured or killed, or property is damaged. Pays defense costs to settle claims from any lawsuits against you, up to the set limit. Legally in Ontario you must carry at least $200,000 in liability.


TORT DEDUCTIBLE - The amount that is deducted from a settlement or court award for pain and suffering.

 

U-

UNINSURED AUTO 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.

V-

W-

X-

Y-

Z-