If you own a vehicle in Ontario, you are required to purchase the following automobile insurance coverage:

Third-party liability coverage:

This section of your automobile insurance policy protects you if someone else is killed or injured or their property is damaged. It will pay for claims resulting from lawsuits against you up to the coverage limit and pay the costs of settling the claims. By law, you must carry a minimum of $200,000 in third-party liability coverage, but you can choose to increase the minimum amount.

Statutory accident benefits coverage:

This section of your automobile insurance policy provides you with benefits if you are injured in an automobile accident, regardless of who caused the accident. This includes supplementary medical, rehabilitation and attendant care, caregiver, non-earner and income replacement benefits. Options exist to increase most of these coverages.

Direct compensation – Property damage (DC-PD) coverage:

This section of your automobile insurance policy covers damage to your vehicle, its contents, or its loss of use if another person was at fault for the accident. It is called direct compensation because even though someone else causes the damage, you collect directly from your own insurer. Most 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 you meet the following conditions:

  • The accident took place in Ontario
  • There was at least one other vehicle involved in the accident
  • At least one of the other vehicles is also insured by an insurance company licensed in Ontario or has signed a special agreement with FSRA to provide this coverage

If you do not meet these conditions, 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 trusted insurance agent, broker or provider before making this important decision.

Uninsured automobile coverage:

Protects you and your family if you are injured or killed by a hit-and-run driver or an uninsured motorist. It also covers damage to your vehicle caused by an identified uninsured driver.