If you drive in Ontario, you are legally required to carry auto insurance. Ontario has some of the most comprehensive mandatory coverage requirements in Canada, designed to protect both drivers and accident victims. Understanding these requirements is essential for every Ontario driver.
The Four Mandatory Coverages in Ontario
Under the Compulsory Automobile Insurance Act, every vehicle registered in Ontario must have insurance that includes these four components:
1. Third-Party Liability Coverage
Third-party liability is the foundation of your auto insurance policy. It protects you financially if you injure someone or damage their property while operating your vehicle.
- Minimum required: $200,000
- What most drivers carry: $1,000,000 or $2,000,000
- What it covers: Legal liability for injuries to others, damage to other people's property, and legal defense costs
While $200,000 is the legal minimum, insurance professionals and the Insurance Bureau of Canada strongly recommend carrying at least $1,000,000 in liability coverage. In serious accidents involving multiple injuries, $200,000 can be depleted quickly, leaving you personally responsible for the remaining costs.
2. Statutory Accident Benefits Coverage (SABS)
Accident benefits provide coverage for you and your passengers regardless of who caused the accident. This is part of Ontario's no-fault insurance system.
Standard accident benefits include:
- Medical and rehabilitation benefits: Up to $65,000 for non-catastrophic injuries, up to $1,000,000 for catastrophic injuries
- Attendant care: Up to $36,000 for non-catastrophic injuries, up to $1,000,000 for catastrophic injuries
- Income replacement: Up to 70% of gross weekly income, to a maximum of $400 per week
- Caregiver benefits: $250 per week for the first person you care for
- Death and funeral benefits: $25,000 death benefit, $6,000 funeral expenses
You can purchase optional increased accident benefits for additional protection beyond these standard amounts.
3. Direct Compensation - Property Damage (DCPD)
DCPD coverage pays for damage to your vehicle and its contents when another driver is at fault for an accident. Under this coverage, you claim from your own insurance company rather than the at-fault driver's insurer.
DCPD covers:
- Damage to your vehicle
- Damage to contents in your vehicle
- Loss of use of your vehicle while being repaired
DCPD only applies when another Ontario driver is wholly or partly at fault. If you're 100% at fault, this coverage does not apply to your own vehicle damage.
4. Uninsured Automobile Coverage
This coverage protects you if you're injured or your vehicle is damaged by an uninsured driver, an unidentified driver (hit-and-run), or a stolen vehicle.
It provides:
- Up to $200,000 for injuries caused by an uninsured or unidentified motorist
- Coverage for vehicle damage from hit-and-run accidents (subject to deductible)
What Happens If You Drive Without Insurance?
Driving without valid insurance in Ontario carries serious penalties:
- First offence: Fine of $5,000 to $25,000
- Subsequent offences: Fine of $10,000 to $50,000
- Additional penalties: Driver's licence suspension, vehicle impoundment
- Long-term impact: Significant insurance rate increases, possible requirement for high-risk insurance (Facility Association)
Proof of Insurance Requirements
You must carry proof of insurance in your vehicle at all times. This can be:
- Your pink slip (liability insurance card)
- A digital copy on your smartphone (accepted in Ontario since 2020)
Failing to produce proof of insurance when requested by police can result in a fine.
Beyond the Minimums: Optional Coverages to Consider
While the four coverages above are mandatory, many drivers choose to add optional coverages for more complete protection:
- Collision coverage: Pays for damage to your vehicle regardless of fault
- Comprehensive coverage: Covers theft, vandalism, fire, and weather damage
- OPCF 44R (Family Protection): Provides additional coverage if hit by an underinsured driver
- Increased accident benefits: Higher limits for medical, rehabilitation, and income replacement
Get the Right Coverage for Your Situation
Understanding Ontario's mandatory insurance requirements is the first step in protecting yourself on the road. While meeting the minimum requirements keeps you legal, many drivers benefit from additional coverage options.
Compare quotes from multiple insurers to find the right balance of coverage and cost for your needs.