Mandatory vs. optional auto insurance coverage in Ontario
At a glance: In Ontario, if you want to drive, you’ve got to have the basic auto insurance that the province requires. But while there’s a bare minimum you need, it’s often a smart move to go beyond that. There are extra coverage options out there, and picking a few can give you better peace of mind on the road.
Minimum auto insurance required in Ontario:
To legally drive a vehicle in Ontario, your car insurance policy must include the following:
- Third-Party Liability coverage
- Accident Benefits coverage
- Uninsured Automobile coverage
- Direct Compensation-Property Damage coverage
Optional auto insurance coverage in Ontario:
You’ll likely want to extend your policy beyond the mandatory coverage to increase your protection and benefits. The main optional car insurance coverages in Ontario include:
- Collision or upset coverage
- Comprehensive coverage
Your insurance broker will help you understand and decide on the best level of protection for your needs. The table below describes both mandatory and optional coverage available to Ontario drivers.
| Coverage | Mandatory Coverage | Optional Coverage |
|---|---|---|
| Liability Coverage | ||
| Third-Party Liability | $200,000 in coverage for property damage, injury, or death due to an accident that you are responsible for. | Coverage may be increased to $500,000, $1 million or $2 million. Recommended limit is $2 million |
| Accident Benefits | ||
| Income Replacement Benefits | Weekly income replacement benefits of 70% of your gross income up to $400/week | Weekly benefits maybe be increased to $600, $800 or $1,000 |
| Medical, Rehabilitation and Attendant Care Benefits |
| Non-Catastrophic Injuries: May be increased to $130,000 Or:
Recommend to at least increase to $1 million for all injuries |
| Caregiver Benefits | Catastrophic injuries only: If you provide full-time care to dependants, and can no longer do so as the result of an automobile accident:
| Benefits may be extended to include all injuries. |
| Housekeeping and Home Maintenance Expenses | For catastrophic injuries only: If you need to hire someone to carry out your housekeeping or home maintenance responsibilities. Up to $100/week. | Benefits may be extended to include all injuries. |
| Death and Funeral Benefits | A payment of:
| Benefits may be increased to:
|
| Dependant Care Benefits | Not Covered | Covers care for your dependants if you’re employed and injured in an auto accident.
|
| Indexation | Not Covered | Provides for an annual adjustment of your benefits to account for inflation. Adjusted annually according to the Consumer Price Index of Canada |
| Coverage for Loss or Damage to Your Vehicle | ||
| Direct Compensation – Property Damage Coverage | Covers damage to your vehicle and its contents in the case of an accident for which you are not responsible. Learn more | No further options |
| Collision or Upset Coverage | Not Covered | Covers damages to an insured vehicle that is involved in a collision with another vehicle, trailer, or other object, including the ground, and any object in or on the ground. Learn more |
| Specified Perils Coverage | Not Covered | Covers losses caused by a specific event, such as fire; theft or attempted theft; certain natural disasters; explosion; civil disturbance; and various other perils. Learn more |
| Comprehensive Coverage | Not Covered | Covers the cost of repairing or replacing your vehicle from damage not caused by collision. Includes incidents listed under Specified Perils coverage, such as fire, theft, natural disasters, and more. Learn more |
| All-Risk (All Perils) Coverage | Not Covered | Combines Collision or Upset and Comprehensive coverages. Also covers loss or damage caused by theft by someone who lives in your home or has access to your vehicle. Learn more |
| Coverage Against Uninsured Drivers and Hit & Runs | ||
| Uninsured Automobile Coverage | Covers you and your family against injury or death by an uninsured or hit-and-run driver, and against damage to your vehicle by identified, uninsured drivers. Learn more | No further options |
*If you purchase the additional Medical, Rehabilitation and Attendant Care benefit for both catastrophic injuries and for all injuries, the total eligible benefit amount for a catastrophic impairment would be $3,000,000
The table above should help you better understand the car insurance options available to you in Ontario; however, remember to speak with your broker before making any final decision on the protection you need. At Mitch, we work with 70 of the best insurance companies in Canada in order to find you the broadest coverage in Ontario, and at the best rates available.
Call today to see how our brokers can help.
Frequently asked questions about Ontario auto insurance requirements:
What is the minimum coverage for car insurance in Ontario?
All Ontario drivers must carry the following coverages:
- Third Party Liability coverage (minimum $200,000 if you’re at fault for someone else’s losses, although most drivers opt for at least $1 million);
- Accident Benefits coverage (to pay for treatment, income replacement and other benefits if you’re injured, regardless of fault);
- Uninsured Automobile coverage (to pay for your injuries and damage to your car if you’re the victim of a hit-and-run, or if the at-fault driver has no insurance); and
- Direct Compensation-Property Damage coverage (to fix your car if someone else is at fault for an accident).
What are the four types of mandatory car insurance in Ontario?
In Ontario, the types of car insurance you need to have by law are:
- Liability
- Accident Benefits
- Direct Compensation – Property Damage
- Uninsured Automobile Coverage
What is not covered in car insurance?
Any damage to your vehicle due to the following is not covered under a standard auto insurance policy: war, civil war, mutiny, rebellion, hostilities, terror attack, invasion, foreign enemy action, radiation or nuclear material/weapons.
When did auto insurance become mandatory in Ontario?
Automobile insurance became mandatory in Ontario in 1979, with a modest package of benefits available to accident victims regardless of who was at fault.
