Yes, car insurance is legally required across Canada to operate a vehicle on public roads. However, the specific mandatory coverage is third-party liability insurance, which protects you if you injure someone or damage their property. The minimum required amount varies by province, but driving without at least this basic coverage can result in severe fines, license suspension, and even vehicle impoundment.
While liability insurance is the legal baseline, it only covers damage you cause to others. It does not cover your own vehicle. For comprehensive protection, most drivers purchase additional coverage. Collision coverage pays for damage to your car from an accident, regardless of fault. Comprehensive coverage handles non-collision incidents like theft, fire, or vandalism. If you finance or lease your car, your lender will almost certainly require you to carry both.
The cost of insurance, or premium, is influenced by many factors. Providers assess your driving record, age, location, the type of vehicle you drive, and how you use it. Maintaining a clean driving history is the most effective way to keep costs down. It's also highly recommended to shop around and compare quotes from different insurers every few years to ensure you're getting the best rate for your needs.
| Province/Territory | Mandatory Third-Party Liability Minimum | Governing Body |
|---|
| Ontario | $200,000 | Financial Services Regulatory Authority of Ontario (FSRA) |
| British Columbia | $200,000 | Insurance Corporation of British Columbia (ICBC) |
| Alberta | $200,000 | Alberta Superintendent of Insurance |
| Quebec | $50,000 for property damage (Bodily injury covered by public plan) | Société de l'assurance automobile du Québec (SAAQ) |
| Nova Scotia | $500,000 | Nova Scotia Utility and Review Board |
Ultimately, viewing insurance as merely a legal obligation is a mistake. It is a critical financial safety net. Even a minor fender-bender can lead to tens of thousands of dollars in repair and medical bills, which could be financially devastating without proper coverage.
