Auto Insurance for Canadians

Auto insurance is mandatory in Canada. Here's what you need to know about coverage, costs, and savings.

Required Coverage in Canada

Every province and territory requires minimum liability coverage, but the amounts vary:

Covers damage or injury you cause to others.

Why higher limits? Medical costs and legal fees can easily exceed $200,000. A serious accident could bankrupt you without adequate coverage.

Covers damage to your car from accidents, regardless of fault. Required if you have a car loan or lease.

Covers theft, vandalism, fire, hail, and animal collisions. Also required for financed vehicles.

Covers medical expenses, income replacement, and rehabilitation if you're injured. Mandatory in some provinces (e.g., Ontario).

Protects you if you're hit by an uninsured or underinsured driver. Highly recommended.

Rates vary widely. Get quotes from at least 3 insurers every year.

Combine auto and home insurance with the same company for a 10-25% discount.

Raising your deductible from $500 to $1,000 can save 15-30% on collision and comprehensive.

Multi-car, good driver, winter tires, alumni, and professional association discounts can add up.

Many insurers offer discounts (5-10%) for completing an approved course.

Low-mileage discounts are available if you drive under 10,000-15,000 km/year.

Avoid tickets and accidents. A single at-fault accident can increase your premium by 20-50%.

Auto insurance is regulated provincially, so rules and costs vary:

Stop and check for injuries. Call 911 if needed.
Exchange information with the other driver (name, insurance, license plate).
Take photos of damage and the scene.
Report to police if required (varies by province, usually for injuries or damage over $1,000-$2,000).
Contact your insurer within 24 hours.
Don't admit fault at the scene.

Check out our other insurance guides and financial tools.