What Coverages are Recommended

What is Covered by Car Insurance
The explanations of insurance coverages in each subsection are in general terms only. In all cases, actual coverages are as stated in the terms and conditions of the policy wording. Nothing stated in this website can be construed to extend, expand or modify the actual policy wording.

Third Party Liability
Under certain conditions, the Auto Insurance Act still allows injured persons to sue a car owner and the driver who cause an accident. Therefore, the minimum legal coverage limit of $200,000 is not recommended by Mumby Insurance Brokers. Instead, we recommend a coverage limit of at least $1,000,000.

Family Protection Endorsement
This endorsement is commonly known as Ontario Policy Change Form 44 or simply OPCF 44. The coverage limit is usually the same limit as the Third Party Liability limit.

This endorsement provides for the difference in the limit of insurance carried by the "at fault" motorist and the limit stated in your Family Protection Endorsement.

Mumby Insurance always recommends this coverage for every vehicle on the policy with a minimum limit of $1,000,000. Higher limits are available on request.

Collision
This is the coverage that enables you to have your insurer repair your car when you or your driver cause an accident which damages your car. It also enables you to have your parked car repaired if it is damaged by an unidentified car. The deductible is the amount that you must pay. The recommended deductible is $500 although higher deductibles are available. In the case of expensive cars, insurers sometimes insist on a higher deductible.

Specified Perils
This is the coverage that pays for damage to your car caused by specific events other than collision. Examples are: theft or attempted theft, fire, lightning or hail. If your car is stolen, it also covers the cost to rent a substitute car. This coverage is not recommended. We recommend Comprehensive or All Perils coverage instead as they provide better coverage at a comparatively low additional cost.

Comprehensive
This is the coverage that pays for damage to your car caused by any Specified Peril (described above) plus vandalism and glass breakage. It does not cover damage caused by collision or upset, or damage resulting from wear and tear or mechanical breakdown.

The recommended deductible is at least $300 although higher deductibles are available. Insurers sometimes insist on a higher deductible for expensive cars or if there have been several Comprehensive claims over a 2 or 3 year period.

All Perils
This coverage combines collision and comprehensive coverages and offers other less common (but possible) causes of loss or damage to the car (for example: someone living in your household steals your car).

The cost is usually the same as would be charged if collision and comprehensive coverages were bought separately with the same deductibles. The recommended deductible is $300 although higher deductibles are available. In the case of expensive cars, insurers sometimes insist on a higher deductible. While a higher deductible will reduce your insurance cost, the saving is usually very small.

Loss of Use
This coverage is provided by an endorsement normally called the "OPCF 20". It provides coverage for you to rent a replacement car if your own car is damaged:

• in an accident that is your fault or partially your fault, or
• as a result of any of the insured perils (i.e. fire, vandalism etc).

Non-owned Car/Drive Other Car Coverage
This coverage is provided by an endorsement called "OPCF 27". It extends whatever Collision, Specified Perils, Comprehensive, or All Perils coverage you have purchased for your own car to a rental car or other non-owned car for which you have accepted responsibility under a written contract. Note that because there must be a written contract, coverage does not extend to borrowed cars AND there is normally a coverage limit of $40,000 (Canadian dollars!) and your deductible will apply.

This coverage is recommended for people who rent cars while travelling if they want to avoid having to pay the daily insurance premium charged by the car rental company which can be quite expensive. However, when travelling keep in mind that this endorsement only applies in Canada and the United States. (This territorial restriction applies to ALL coverage provided by the car insurance policy.)

Waiver of Depreciation
If you own a car that you purchased or leased new you ought to have an endorsement called Waiver of Depreciation or "OPCF 43". Effectively, this endorsement means the insurer will not depreciate your car if it is a total loss due to theft or because of the extent of damage. The endorsement only applies during the first 24 months that you own the car. After 24 months the car is valued on a depreciated basis.