Ontario Car Insurance Coverage

There are various types of car insurance available to residents of Ontario.

Some coverage is mandatory:   including Liability, Accident Benefits, Uninsured Automobile and Direct Compensation.

There is also some choice of coverage: for instance, you have options in the type of Loss or Damage coverage you wish to have.

Your insurance coverage will depend on your needs and the coverage you must have according to the law.  The different types of coverage will now be explained.

Insurance Coverage Explained:


  • Covers you if you kill or injure someone else during a car accident, or if you damage their property during the collision.  Your coverage will have a set limit.  Your insurance will cover all costs for which you are responsible up to your coverage limit.  The minimum limit in Ontario is $200,000.

Accident Benefits

  • If you are injured or killed in a car accident the insurance company will pay benefits that you are entitled to based on your insurance agreement.  Accident benefits include income lost, medical bills, rehabilitation costs after the accident, other various costs, funeral bills and death benefits.

Uninsured Automobile

  • If you or any other insured person is injured or killed by another driver who does not have insurance, or by someone who hits-and-runs, this type of insurance can cover you.  The insurance company will cover damages to the car you were driving and what’s inside of it if the other driver is identified and does not have insurance.

Direct Compensation-Property Damage

  • If you are in Ontario, the insurance company will give you coverage for damage to your car and whatever it is carrying when someone else is responsible for the accident.  This means that even though someone else caused the accident, you still get the financial coverage from your insurer.  Conditions can apply to this type of coverage.

Loss or Damage

  • This covers you for loss or damage caused to your car or its parts.  The loss or damage may be accidental or a result of direct action.  You can choose from coverage of Specified Perils, Comprehensive, Collision or Upset, or All Perils.  You may decide to have as many of these coverages as you would like.

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