If you’ve ever wondered what ‘no-fault insurance’ or ‘waiver of depreciation’ means, or even the difference between an insurance agent and a broker, you’re not alone. In fact, a recent CAA study found that 53% of Ontarians find their auto insurance policy hard to understand.

To help make things clearer, CAA Insurance¹ created an Insurance Guidebook designed to break down key concepts so you can better understand your coverage and have more productive conversations with your insurance agent or broker.

Here’s a quick look at what’s included in the insurance guidebook.

Clear explanations of key terms

Did you know that your premium is calculated by considering things like your vehicle make and model, how often and how far you drive, any accidents or driving convictions you’ve had, and where you live? Knowing these things can allow you to have more effective conversations with your insurance agent or broker and even make a difference in how much you pay for insurance.

The insurance guidebook introduces many of the terms you’ll need to know, in easy-to-understand language. It also explains the concept of at-fault and no-fault insurance, so you know exactly what your policy includes if you ever get into an accident.

What your policy includes

In Ontario, auto insurance policies are made up of both mandatory and optional coverages. Understanding what’s included—and what isn’t—can help you decide if your current coverage aligns with your needs.

The insurance guidebook walks through these components so you can make more informed choices about your protection.

What affects your insurance rate

You may already know that safe driving can help lower your premium, while tickets or accidents can increase it. But other factors can play a role too. For example:

• Does a clean driving record translate to lower premiums?
• Can installing winter tires help reduce your premium?

The guidebook answers these questions and highlights practical ways to better understand what influences your costs.

Whether you’re purchasing or reviewing a policy or navigating a claim, having the right information helps you make confident, informed decisions. Understanding auto insurance terms can make a real difference when it matters most.

Download CAA’s Insurance Guidebook.

CAA Insurance² is CARP’s Recommend provider for auto, home, travel, life and pet insurance, as well as roadside assistance.

Visit carp.ca/caa-auto to explore your savings and coverage options.

_{¹ Auto and Property Insurance are underwritten by CAA Insurance Company.
² Please visit carp.ca/caa to see a list of underwriters covering various CAA insurance products.
®CAA trademarks are owned by, and use is authorized by, the Canadian Automobile Association. Certain conditions, limitations and underwriting guidelines apply.}