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What Is Mandatory for Car Insurance Coverage in Ontario?

car insurance Ontario

Updated: March 29, 2023

When it comes to car insurance in Ontario, there are different options at your disposal for coverage. However, there are certain types of coverage that the government in our province mandates as required for anyone wanting to get a car out on the road. Let’s take a look at what you have to have as part of your auto insurance plan…

Basic car insurance coverage in Ontario

In Ontario, at the very minimum you must have these three (formally four – see below) types of insurance coverage in place.

1- Third party liability: This coverage protects you in the event that another person is injured or killed, or if there is damage to another’s property. This covers you against any claims made against you in a lawsuit and pays the costs of these claims (up to the limits of the coverage you have in place). In Ontario, the minimum amount of third party liability required is $200,000. For more on third party liability, check out our post here.

2- No longer mandatory! Direct Compensation – Property Damage: With this coverage, if someone else is at fault for a car accident, you are covered for any damage to your vehicle and/or its contents, as well as the loss of use for the car or contents. While the damage was caused by another person, you get compensation directly from your own insurance provider. However, there are limitations to this coverage. The accident must have taken place in Ontario, with at least one other vehicle involved that is insured by an Ontario insurance company. {Update March 2023: DCPD coverage is no longer mandatory for car insurance coverage in Ontario. Learn more about the change here.}

3- Statutory Accident Benefits: This coverage protects you if you are injured in a car accident, regardless of who is at fault for what happened. This would cover things like medical treatment, attendant care or loss of income as a result of the accident. Learn more about Statutory Accident Benefits here.

4- Uninsured Automobile: This coverage protects you and your family if you’re injured or killed in a hit and run or by someone who is uninsured. Coverage for vehicle damage by a driver without insurance is also included here.

Note that in Ontario, it is possible to also go for coverage that is one-way to meet the minimum requirements, as we are in a province that allows for this type of insurance. So you would have the above pillars, but they would only apply to the other driver and not yourself. Click here to learn more about one-way auto insurance. 

Click here for more information on car insurance in Ontario and what is required from the Financial Services Commission of Ontario.

Coming up in a future series of posts, we’ll be looking at what optional coverages you can choose from for your car insurance (there are lots!). Stay tuned for part 1

Looking for auto insurance quotes for Ontario? Click here.

Have any questions about the coverage you have? Want to learn more about how you can make your insurance cheaper? Get in touch with us today.

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This post is intended to provide general information for educational purposes only and is not meant to cover all terms, conditions and exclusions that are found in different insurance policies or government policies. If there is any inconsistency between this information and the definitions in your policy, it is your policy that governs. The use of the information in this post is at your discretion.


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