Driving on Ontario roads requires a valid insurance policy. Learn what the minimum requirements include, how much the mandatory coverage costs, and whether the legal minimum provides enough protection.
To prepare this guide, the MyChoice editorial team reviewed Ontario’s Insurance Act, the Compulsory Automobile Insurance Act, the Statutory Accident Benefits Schedule (SABS), the Ontario Automobile Policy (OAP 1), and recent FSRA guidance relating to Ontario’s July 1, 2026 auto insurance reforms. We analyzed how the legislative changes affect mandatory and optional coverages and compared the standard policy before and after the reforms.
What is a Minimum Car Insurance Requirement in Ontario?
The table below shows the average annual cost of Ontario’s mandatory car insurance coverage only.
| Mandatory Coverage (Ontario) | What It Covers | Average Annual Car Insurance Premium |
|---|---|---|
| Third-Party Liability | Injury or property damage you cause to others, plus legal costs | $297 |
| Accident Benefits | Medical care, rehabilitation, and attendant care benefit | $637 |
| Uninsured Automobile | Protection if you’re hit by an uninsured or unidentified driver | $17 |
| Direct Compensation – Property Damage (DCPD) | Damage to your own vehicle when another driver is at fault | $523 |
| Total Minimum Required Coverage | All mandatory coverages combined | $1,474 |
DCPD is automatically included in most standard auto insurance policies in Ontario unless you explicitly exclude it by signing the OPCF 49 waiver.
Most drivers choose additional coverage to protect their own vehicle. For a full breakdown of optional coverages, average premiums, and how rates vary by driver profile, see our Ontario car insurance overview.
Read More: 2026 Ontario Accident Benefits Reform Explained
Further Breakdown of What’s Included in the Mandatory Coverage
Do You Need More Than the Minimum?
For most drivers, yes. The mandatory package protects other people and your own medical recovery, but not your own vehicle.
The add-ons worth pricing before you decline them:
- collision (your car, when you cause the crash or the at-fault driver can’t be identified);
- comprehensive (theft, fire, vandalism, hail and other non-collision damage);
- higher liability limits;
- increased accident benefit limits;
- OPCF 44R Family Protection endorsement, which tops you up when an at-fault driver’s liability limit is too small to cover your injuries;
Lenders and leasing companies almost always require collision and comprehensive coverage as a condition of financing.
What Happens if You Drive Without Insurance in Ontario?
Driving uninsured isn’t a criminal offence in Ontario, but the Compulsory Automobile Insurance Act makes it an expensive one:
- a first conviction carries a fine of $5,000 to $25,000;
- a second or subsequent conviction carries a fine of $10,000 to $50,000;
A 25% victim surcharge is added on top. The court can also suspend your licence for up to a year and have the vehicle impounded for up to three months.
Read more: What Happens if You Drive Without Insurance in Ontario