Car insurance is mandatory in Ontario, and available coverages can be broadly categorized as minimum (mandatory) and optional.
Minimum vs Optional Auto Insurance Coverage in Ontario
Ontario law requires every driver to carry basic insurance. This coverage package will keep you on the road legally, but it does not cover damage to your own car.
The minimum (aka mandatory) coverage includes:
- Third-Party Liability – covers injuries or property damage you cause to others
- Accident Benefits – covers basic medical care and limited income replacement if you’re injured
- Uninsured Automobile – protects you if you’re hit by an uninsured or hit-and-run driver
*Starting in July 2026, Ontario will make some accident benefits optional.
Optional coverage goes further:
- Direct Compensation – Property Damage (DCPD) – pays for damage to your car if you’re not at fault
- Collision – covers damage to your car when you’re at fault
- Comprehensive – covers theft, vandalism, fire, and weather damage to your car
- OPCF 20 (Loss of Use) – pays for a rental while your car is in the repair shop
- OPCF 27 (Rental Vehicle Coverage) – protects you when driving a rental or borrowed car
- OPCF 44R (Family Protection) – covers you and your family if the at-fault driver doesn’t have enough insurance
- OPCF 39 (Accident Forgiveness) – protects your premium from rising after your first at-fault accident
- OPCF 43 (Waiver of Depreciation) – pays full replacement value for newer vehicles
Most Ontario drivers carry at least some of the above optional coverages. When you get a car insurance quote with MyChoice, we would generally include all of the above as “highly recommended”.
Visit our main Ontario page to view the breakdown of average premiums for the coverages listed above.
How Much Coverage You Should Carry in Ontario
| Coverage | Who Should Have It | Our Take |
|---|---|---|
| Third-Party Liability | Mandatory for all Ontario drivers | $2M should be your baseline. Claims get expensive fast. Serious injuries burn through limits quickly. |
| Accident Benefits | Mandatory for all Ontario drivers | Don’t strip this down lightly. Lost income hurts more than car damage. |
| Collision | Newer cars, financed vehicles, cars with real resale value | If replacing your car would hurt financially, keep collision. |
| Comprehensive | Ontario drivers with theft or weather exposure | Theft and weather claims are up. If you can’t replace your car easily, keep it. |
| OPCF 20 / 27 (Rental & Loss of Use) | Commuters, families, anyone who relies on their car daily | This is a pretty affordable coverage that prevents big disruptions. |
| OPCF 44R (Family Protection) | Drivers with income or dependents to protect | One of the most overlooked but most important coverages. |
| OPCF 43 (Waiver of Depreciation) | New or recently purchased vehicles | Affordable. Pays off big after a write-off. |
Additional Coverage Tips by Driver Type
Key Advice from MyChoice
- Keep collision and comprehensive coverage only if your car is worth protecting. If replacing your vehicle would strain your finances, keep it.
- Add rental and family protection to your coverage. These coverages are low-cost and solve real problems when accidents happen.
- Talk to your broker about which coverages make sense for your situation, then use MyChoice to compare rates across insurers and see how adding options such as rental and family protection affects your premium.