Is car insurance mandatory in Ontario? (2024)

Is car insurance mandatory in Ontario?

In Ontario, all motorists are legally required to have auto insurance. Fines for vehicle owners, lessees and drivers who do not carry valid auto insurance can range from $5,000 to $50,000. Your driver's licence can be suspended and your vehicle impounded if you drive without valid auto insurance.

Is it illegal to not have car insurance in Ontario?

Given that auto insurance is mandatory in Ontario, choosing to drive without it is illegal. If caught, especially if you are involved in an accident, you could face serious consequences.

Why is car insurance mandatory in Ontario?

The concept of the mandatory auto insurance law protects all individuals that are involved in a motor vehicle accident, some of which may otherwise not be able to afford costs associated with healthcare and rehabilitation.

Do you legally need car insurance in Canada?

The law is clear. Every Canadian vehicle owner must have auto insurance in order to operate your vehicle. It is compulsory in all territories and provinces. If you are caught driving without insurance, your license can be suspended, your vehicle can be confiscated, and you will face a hefty fine.

How many people in Ontario drive without insurance?

Driving Without Insurance Comes with Consequences

About 8.5 million were on Ontario roads and it has been estimated that two percent of these drivers lacked the necessary insurance. That may not seem like much, but that would mean there are 170,000 people driving without coverage in this province.

What are the 4 mandatory coverages in Ontario?

What happens if you get in an accident without insurance in Ontario?

If you are the uninsured driver with involvement in an accident, you will be held personally responsible. This will include responsibility for all the repairs to your vehicle, as well as any medical bills. You will also be financially responsible to pay for the damages to any other vehicle(s) in the accident.

What insurance is mandatory in Ontario?

The minimum requirement for mandatory auto insurance in Ontario is $200,000 in Third Party Liability, Direct Compensation – Property Damage, Accident Benefits, and Uninsured Automobile coverage. Additional coverage can be purchased from an insurance representative.

When did auto insurance become mandatory in Ontario?

What is the fine for not having auto insurance in Canada?

Penalties. While driving without insurance is not an offence under the Criminal Code of Canada, it is a serious provincial offence. The penalties for driving with no insurance in Ontario are as follows: a fine of between $5,000 and $25,000 on a first conviction.

Can you go to jail for driving without insurance in Ontario?

You will not be arrested for driving without insurance because it's not a criminal offence, but Ontario does take it very seriously. You will be faced with other fines and penalties, such as having your car impounded.

Is it illegal to drive with one hand in Ontario?

There is no law that explicitly prohibits you from driving a car with a broken arm. However, if you feel that you're finding it difficult to drive safely with your cast on, then you should refrain from getting behind the wheel.

Can you have an uninsured car in your driveway Ontario?

It is not legally required to have parked car insurance, but it is highly recommended even if you are just parking a car in your driveway. If your vehicle has low value or if you are keeping it for parts, having active protection isn't necessary.

What insurance is mandatory in Canada?

Across Canada, auto insurance is mandatory for all drivers and the industry is closely monitored by the provincial government. Depending on the province, regulators may oversee how insurance companies assess risk, determine prices and handle claims.

How much is insurance in Ontario?

The Financial Services Regulatory Association of Ontario estimates the average Ontario car insurance premium to be $1,737 annually or $144.75 per month as of June 2023. RATESDOTCA Auto Insuramap data from early 2023 shows that the average Ontario car insurance premium is $1,744 annually or $145 per month.

Is collision insurance mandatory in Ontario?

Is collision insurance required in Ontario? No. Although it should be part of your auto policy, it is not mandatory. However, it is recommended, especially if you have a newer vehicle.

What is the minimum coverage for car insurance in Ontario?

Under FSCO rules, all Ontario drivers must carry at least $200,000 in third party liability coverage. For many reasons, a lot of people choose to carry more than this minimum amount.

What does no-fault insurance mean in Ontario?

Ontario has a "no-fault" car insurance system, but this does not mean that no one is at fault in an accident. The term "no-fault" insurance simply means if you are injured or your car is damaged in an accident, then you deal with your own insurance company, regardless of who is at fault.

Do you have to go through insurance after minor accident Ontario?

In Ontario, you should report any accident within 24 hours of it occurring. Even if the damage is minimal (less than $2000) and you decide not to file an insurance claim, you will have a record of the accident.

What is the new insurance option in Ontario 2024?

Effective Jan. 1, 2024, Ontario began allowing drivers to opt out of previously mandatory coverage called "direct compensation — property damage," which reimburses drivers for damage to their own vehicle in an accident that is not their fault.

Is Ontario car insurance public or private?

Ontario's auto insurance system is private, meaning insurance is supplied exclusively by for-profit companies. By law, a motorist in Ontario is required to have active coverage for third party liability, accident benefits, and damage by uninsured automobiles.

What is basic insurance in Ontario?

Third-party liability coverage is your basic level of car insurance coverage. It is mandatory all across Canada. Liability protects drivers from legal responsibility in the event that they cause property damage or bodily injury to a third party.

Do you need Canadian insurance to drive in Canada?

Canada and the U.S. have reciprocal laws for auto insurance, which means a U.S. insurance policy will cover you in Canada. It's a good idea to check with your insurance company before you leave for any driving trip that crosses a border.

Can you drive a new car without insurance in Canada?

Yes, you absolutely need car insurance in Canada; it's the law. You will need to get the minimum mandatory coverage that is required in your province. Driving without insurance is a serious offense with harsh penalties such as pricey fines or getting your licence suspended.

What is basic car insurance in Canada?

Third-party liability coverage is the most basic car insurance type in Canada and is mandatory. As a policyholder, it protects you against having to pay any damages to someone's property. You will also have cover if someone is injured or killed due to an accident where you are at fault.