Car Insurance in Ontario, Canada
Smarter Coverage, Real Peace of Mind
At Solutions Insurance Group, we don’t just sell policies — we deliver peace of mind, protection, and partnership. Our licensed brokers compare rates from Ontario’s leading insurers to secure the right coverage at the best value, customized to your needs and lifestyle.
What Is Car Insurance?
In Ontario, car insurance is a legal requirement under the Compulsory Automobile Insurance Act. Driving without it is against the law.
Car insurance is a contract between you and your insurer: you pay a premium, and in return the insurer covers specific losses if your vehicle is damaged, stolen, or involved in an accident.
A policy may include coverage for:
- 💰 Repairs or replacement of your vehicle or another driver’s vehicle
- ⚖️ Liability costs if you injure someone or damage property
- 🏥 Medical expenses and income replacement after an accident
- 🚘 Protection against theft, vandalism, fire, and other risks (if optional coverages are added)
Mandatory Auto Insurance in Ontario
By law, every Ontario auto policy must include the following four coverages:
- Third-Party Liability – Covers injury or property damage you cause.
- Minimum required: $200,000 (most drivers select $1M or $2M).
- Statutory Accident Benefits (SABs) – Pays for medical treatment, rehabilitation, attendant care, and income replacement — regardless of fault.
- Uninsured Automobile Coverage – Protects you and your family if injured or killed by an uninsured driver or in a hit-and-run.
- Direct Compensation–Property Damage (DCPD) – Your insurer pays for vehicle damage and its contents if another insured driver is at fault.
- New Rule (2024): Drivers may opt out of DCPD to reduce premiums — but then you’ll be fully responsible for your own vehicle repair and replacement costs, even if another driver caused the accident.
Optional Coverages Available
To strengthen your protection, Ontario drivers can add:
- Collision Coverage – Pays for vehicle repairs after a crash, regardless of fault
- Comprehensive Coverage – Covers theft, vandalism, fire, and weather-related damage
- Accident Forgiveness – Prevents a premium increase after your first at-fault accident
- Loss of Use – Pays for a rental car or alternate transportation while your vehicle is being repaired
- Waiver of Depreciation – Ensures your new car is replaced at full value (without depreciation) if written off early
🛡️ DCPD in Simple Terms
- ✅ Included in every standard Ontario policy (unless you choose to opt out)
- ✅ Ensures your insurer pays you directly if another insured driver is at fault
- ⚠️ Opting out lowers your premium slightly, but leaves you covering all your own repair costs
💡 Broker’s Tip: DCPD provides critical protection. For most drivers, keeping it is the safer choice.
