What is in a standard auto insurance policy? | Financial Services Regulatory Authority of Ontario

The following descriptions are summaries of coverages that are automatically included in your policy. Do not rely on these summaries alone. For full details, please refer to your policy, the Insurance Act and Ontario Regulation 34/10 (the “SABS”).

Liability coverage

This section of your policy may protect you if someone else is killed or injured or their property is damaged. It may pay for legitimate claims against you up to the coverage limit and for the costs of settling claims against you for losses others suffer in an automobile incident for which you are responsible. By law, you must carry a minimum of $200,000 in third-party liability coverage, but you can choose to purchase a higher amount.

Statutory accident benefits coverage

This section of your automobile insurance policy provides you with benefits that may be available to you if you are injured in an automobile accident, regardless of who caused the accident.

If you purchase a new policy on or after July 1, 2026, only medical, rehabilitation and attendant care benefits are a mandatory part of your policy. All other accident benefit coverages under new policies, such as income replacement, are optional.

You may choose to increase your coverage and/or add optional benefits to your policy, like income replacement, caregiver, or housekeeping and home maintenance.

Speak to your insurer, agent, or broker to learn more about your options. Learn more about optional accident benefits.

Uninsured automobile coverage

The following coverage is included in a standard automobile insurance policy, but you may elect not to claim it

Direct compensation – Property damage (DCPD) coverage

This section of your automobile insurance policy may cover damage to your vehicle, its contents, or its loss of use for an accident that occurs in Ontario if at least one other person driving a vehicle with an automobile insurance policy was at fault for the accident. It is called direct compensation because you collect directly from your own insurer. Some policies don’t have a direct compensation property damage deductible, but you can add one to lower your premium.

Note: Coverage under the Direct Compensation-Property Damage section of your automobile insurance policy only applies if the following conditions are met:

the accident took place in Ontario
at least one other vehicle involved in the accident is insured under a motor vehicle liability policy
the other vehicle is insured under a policy issued by an insurance company licensed in Ontario or an insurer that has filed with FSRA to provide this coverage

If these conditions are not met, then you can claim your optional collision coverage (if you have it), whether or not you are at fault.

Effective January 2024, you may elect not to claim Direct Compensation-Property Damage coverage. Opting out may not be the best option for you. Speak to your insurer, agent, or broker before making this important decision.