Motorcycle Insurance – Detailed Information

To drive a motorcycle in Ontario, you must have a valid M class license. Motorcycle insurance is a specialty insurance product, and not all insurance companies offer it. If you already have auto insurance, you may want to check with your broker to see if your insurance company also sells motorcycle coverage. If you wish to bundle your auto and motorcycle coverage, your insurance company may offer a discount on the premium.

You can also purchase “standalone” motorcycle insurance that is separate from any other auto insurance policy you may possess. However, the premium for a standalone motorcycle or snowmobile insurance policy may be more expensive than if either of those vehicles are added to your existing auto insurance policy.

Because a motorcycle is a vehicle driven on the same roads as a regular automobile, the same mandatory policy applies: Even though motorcycles are only driven seasonally, a full-year policy is required with premiums paid in full typically within the first 4-6 months of the policy term.

Mandatory Coverage:

To drive in Ontario, you must have direct compensation – property damage (DCPD) coverage, uninsured automobile coverage, liability – bodily injury coverage, and accident benefits coverage. These are all compulsory. This means that, by law, you must buy these types of coverage.

Liability – Bodily Injury

This 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 for the costs of settling the claims. The minimum required amount of coverage is $200,000 in Ontario, though higher limits are recommended.

Accident Benefits

This provides benefits if you are injured or killed in an automobile collision anywhere in North America regardless of who caused the collision. These benefits may include:

  • Income replacement.
  • Payments to non-earners who suffer a complete inability to carry on a normal life.
  • Care expenses to persons who cannot continue as a primary caregiver to a member of their household.
  • Medical, rehabilitation and attendant care expenses.
  • Certain other expenses.
  • Funeral expenses.
  • Payments to survivors of a person who is killed.

The details of the accident benefits are set out in the statutory accident benefits schedule of the Insurance Act of Ontario. They are also available on Insurance Bureau of Canada’s website at www.ibc.ca.

Please refer to your policy documents for the standard limits of coverage for each category provided.

Uninsured Automobile

If you are injured or killed by an uninsured motorist or hit-and-run driver to the extent that you were not at fault, uninsured automobile covers you. It also covers damage to your automobile caused by an identified uninsured motorist. The policy carries a $200,000 limit for injury or death and a limit of up to $25,000 for damage to your vehicle, subject to a deductible of $300.

Direct Compensation – Property Damage (DCPD)

This coverage allows you to claim for damage to your vehicle and its contents caused by someone else. DCPD means that, to the extent that you are not at fault in a collision with another vehicle, your own insurer will pay for damage to your vehicle and its contents. Standard $500 deductible (can be increased or decreased).

Optional Coverage:

You are not required by law to purchase collision or comprehensive coverage. However, if you owe money on your vehicle, your lienholder (the person or group you are making payments to if your motorcycle loan is not paid in full) may require you to have these types of coverage to protect their interest in your vehicle.

Collision or Upset

This coverage pays for damage to your vehicle to the extent that you are at fault or for damage caused by an unidentified vehicle or object. The standard deductible is $500 for collision – or upset – and $300 for comprehensive; however, you may choose a higher deductible in order to decrease your rates.

Comprehensive

This coverage pays for all insured damage to your vehicle except for collision damage (e.g. fire, theft and vandalism).

All Perils

This coverage combines collision and comprehensive. It is the broadest coverage available and it includes all types of coverage unless specifically excluded.

Specified Perils

This coverage pays only for losses caused by perils specifically listed in the policy (primarily fire and theft).

Increased Liability

You may buy coverage beyond the minimum required by law to $1 million or $2 million. Typically, brokers and insurers will require a minimum of $1 million.

Increased Accident Benefits

You may buy coverage beyond the minimum required by law. The optional benefits your Insurance company offers are:

  • Increased income replacement.
  • Caregiver, housekeeping and home maintenance.
  • Increased medical, rehabilitation and attendant care.
  • Increased death and funeral.
  • Dependant care.
  • Indexation of benefits to inflation.

Please refer to your policy documents for optional increased limits or speak to your broker.