A good auto insurance policy protects you, your family, your investment, and your community. Are you aware of what protections get covered by the auto insurance policy you have purchased?

The right insurance coverage is vital for a car owner. In the end, you don’t know what could happen in the course of your travels. Without the right coverage, it is possible to suffer:

A) Costly fines,

B) A suspension of your license or

C) A vehicle impounded!

It is not something you would be taking during your commute to work or long-awaited summer road trip,

Commercial Insurance Ottawa brokers always ensure you have the appropriate insurance coverage to meet your specific requirements. You’ll get prepared regardless of what’s ahead!

How Does Auto Insurance Work?

It is mandatory to be insured with auto insurance on the registered vehicle to use on the roads legally. If you don’t, your insurance provider could identify you as a risky driver and thus increase your insurance rates. They might even decide even to insure you!

If you have a valid insurance policy and proper coverage, you don’t need to be worried about these issues.

A valid insurance policy for your car will protect the driver, the passengers, and any other individuals affected by a vehicle accident.

What Kinds of Coverages Does Your Auto Insurance Policy Include?

Good insurance coverage is vital for drivers. However, not all of them are legally required. Many are voluntary!

Following, we’ll examine the varieties of auto insurance that are necessary and optional.

Mandatory Insurance Protections:


Liability insurance saves you from any loss caused by your vehicle, like injuries, deaths, or damage to other vehicles. However, it does not pay for repairs to your car.

Accident Benefits

Accident benefits pay for medical expenses and lost income in a car accident. Don’t get underinsured! You should consider alternatives to enhance the coverage of accident benefits.

Direct Compensation Property Damage (DC-PD)

DC-PD insurance pays for vehicle repairs following an accident, regardless of whether you were at fault or not.

Additional Protections:


Collision insurance will cover your vehicle’s repairs or replacement expenses if it is involved in an accident. It’s not a requirement in every province, but we strongly recommend it in many situations.

Many individuals choose to add collision insurance to their existing insurance to safeguard the value of their vehicle. However, once your car begins to decrease, it is common to eliminate collision insurance from the policy.

The value of cars isn’t diminishing. Many car owners choose to maintain collision insurance for a more extended time.


Comprehensive insurance covers repair or replacement expenses. But not the costs that are related directly to an injury. The insurance protects you against other damage or losses, like vandalism, theft, or damage to your windshield.

Optional Coverages:

Loss of Use

Loss of use insurance will cover the cost of renting a vehicle while the broken car is repaired or replaced. This insurance can be highly advantageous since it provides you with a car to use while waiting for your vehicle to get fixed. Nowadays, however, repair shops are facing lengthy delays in repairs and parts due to supply chain problems.

Accident Forgiveness

Accident forgiveness will protect your insurance premium following your first at-fault accident. After the first incident, the insurance company typically increases your insurance premium. Also, it considers you to be a risky driver. However, with accident forgiveness insurance, the insurance company will basically “forgive to forget” to ensure that your insurance premium does not rise.

The insurance will only be valid to drivers with no at-fault collisions on their records. There are specific rules and limits regarding it are something you’ll have to talk about with your insurance provider.


Depreciation insurance safeguards your brand-new car from being worthless over a particular period. The coverage is in effect until the time of reimbursement for the vehicle that was damaged or lost.

The insurance will cover the vehicle purchase cost, the manufacturer’s suggested retail price, or the value of the car currently.

Commercial Insurance Ottawa Helping You Find the Right Insurance to Meet Your Business’s Needs. Talk to us today about your new or renewal insurance at (613) 454-5640 or mail at info@commercialinsuranceottawa.com.