Minimum Auto Insurance Requirements in Ontario

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Article Contents
By Aren Mirzaian
Updated on February 03, 2026

2 minute read

Article Contentstable-of-contents

Minimum Auto Insurance Requirement in Ontario at a Glance

  • Car insurance is mandatory for all drivers in Ontario.
  • The minimum required coverages include: Third-Party Liability, Accident Benefits, and Uninsured Automobile.
  • Starting July 2026, some accident benefits will become optional, increasing choice but requiring more active decision-making at renewal.
  • Vehicle damage coverage (collision and comprehensive) is optional but strongly recommended.
  • Most lenders require collision and comprehensive coverage if your car is financed or leased.
Minimum Auto Insurance Requirements in Ontario

What Does a Mandatory Car Insurance Package in Ontario Look Like?

The table below shows the average annual cost of Ontario’s mandatory car insurance coverage only.

Mandatory Coverage
(Ontario)		What It CoversAverage Annual
Car Insurance Premium
Third-Party LiabilityInjury or property damage you
cause to others, plus legal costs		$264
Accident BenefitsMedical care, rehabilitation, and
income replacement regardless
of fault		$566
Uninsured AutomobileProtection if you’re hit by an
uninsured or unidentified driver		$15
Total Minimum
Required Coverage		All mandatory
coverages combined		$845
Source: MyChocie Quote Database, January 2026

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.

Further Breakdown of What’s Included in the Mandatory Coverage

Compulsory Third-Party Liability Minimums

For a single accident, you need to have $200,000 in coverage. In the event that a claim involves both property damage and bodily injury meeting the $200,000 limit, property damage will not be allowed to exceed $10,000.

Medical Payments

For non-catastrophic injuries, the combined mandatory limit for medical, rehabilitation, and attendant care is $65,000. For catastrophic injuries, this combined benefit is $1 million, though optional coverage can increase this to $2 million or more

Funeral Expenses

If the policy includes optional indexation coverage, the traditional amount is $6,000. However, in some cases, it may be higher.

Disability Income Benefits

For those who are in need of income replacement benefits, you are entitled to receive 70% of your weekly gross wages up to a maximum weekly amount of $400.

The minimum weekly payment is $185, for a total of 104 weeks. If the victim is unable to pursue employment, they will be eligible for benefits beyond 104 weeks. Nothing will be provided for the first seven days on disability.

If the injured party is unemployed, they are eligible to receive benefits of $185 per week for 104 weeks. The individual will need to wait 26 weeks before receiving any payments from the claim.

Individuals who do not qualify for income replacement, such as students or retirees, may be eligible for a non-earner benefit of $185 per week if they are completely unable to carry on a normal life.

Currently, these benefits are standard, but for policies renewing or issued on or after July 1, 2026, Income Replacement and Non-Earner benefits will become optional add-ons that drivers must specifically choose to purchase.

Death Benefits

In case death occurs within 180 days of the accident, or three years if the individual was disabled continually before death, the spouse is entitled to receive a minimum of $25,000, dependents receive $10,000 each, and the parent or guardian receives $10,000. If the optional indexation coverage has been purchased, the amounts could be higher.

Impairment Benefits

Impairment benefits are available through a tort action.

Pain and Suffering Lawsuits

As of 2026, pain-and-suffering lawsuits are subject to a statutory deductible of $48,000. This amount is subtracted from any court award that falls below the 2026 ‘vanishing’ threshold of $160,000.

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