Insurance Coverage Requirements in Ontario

What is Legally Necessary vs. Important to Consider


Context: Insurance in Ontario is a legal requirement in order to operate a vehicle on the road. Although insurance is required, the legal minimum versus what is required to ensure that you are protecting yourself and your family are widely different. This article should provide insight on what someone needs to simply drive and what someone should have to protect themselves from physical and legal financial loss.


Key Points:

  1. Fines for uninsured operators can range from any where between $5,000 – $50,000 and can also result in the vehicle being impounded and the operators license being suspended.
    1. This will also impact their insurance premium in the future for a minimum of 5 years


  1. In order to legally drive you must have Third-Party Liability Insurance for a limit of coverage of $200,000.00.
    1. Most motorists drive with atleast $1,000,000 worth of coverage as most legal actions resulting from an accident related incident have a statement of claim value of atleast $1,000,000 if not more
    2. If ever in an incident during a trip across the boarded in the U.S. the coverage is immediately reduced by 30% (or more) depending on the exchange rate. Ex. $200,000 in the U.S. is actually $140,000 worth of coverage which does not get very far to legally protect a drive. This is again another reason why typical minimums suggested coverage is $1,000,000.00
    3. An additional section within the “third-party liability” section is Statutory Accident Benefits.
      1. This coverage helps to provide the operator (if involved in an accident) coverage for medical costs including rehab, caregiving, and income replacement. This can be critical in the event that the driver is involved in an accident where they are unable to work or provide for their cost of living on their own after an accident.
      2. It is important to buy-up accident benefit coverage where necessary to ensure that the limits of coverage equal the amount necessary to pay for ongoing medical and financial costs.
  • Important to note that this Income Replacement coverage would respond second to any other critical illness, or medical insurance plan that the operator may have