Required And Optional Car Insurance In Canada

Whether you drive a large truck, a minivan, two-door sedan, or a motorcycle, you will need car insurance. Each province in Canada requires a minimum level of coverage. You can also choose to add to your coverage to increase your protection. Here are the mandatory coverage plans and optional add-ons (these may vary slightly depending upon the province and insurance company):



This form of insurance is the most basic available. It protects yourself and other drivers from damage to vehicles and other property. However, most importantly, it protects the driver from the liability of injury (even death) of other people.

Accident Benefits

Whereas liability insurance protects you from fault, there is also a necessary range of coverage involving medical expenses. This can include treatment, funeral costs, rehabilitation, inability to work (due to loss of income) and more. 

By having these two mandatory forms of insurance, you protect yourself from paying thousands or hundreds of thousands of dollars out of pocket due to an accident.

Additional / Optional Coverage

Many people decide to add additional coverage to their vehicles to protect themselves, their loved ones, and their property even further. Examples are:


This insures against the cost of repairing or replacing your vehicle. It can even apply if you strike a non-moving object (boulder, light pole, etc.).

Specified Perils

This covers particular hazards such as lightning, fire and other natural disasters. It can also protect against theft, depending on your insurance company.

Loss of Use

If your vehicle is damaged, this insurance covers your transportation costs while the car is in the shop.

Damage to a Non-Owned Vehicle

Sometimes, damage can occur to vehicles that you don't own, such as a rental car. In these cases. you'll be glad to have this additional coverage.

Waiver of Depreciation

If you plan on selling your car in the future, this can be a boost to your car's value. If something happens, such as an accident or major repair, this insurance will keep your car from depreciating (losing value) for 36 months. 


This covers all physical damage that your car suffers from alternate causes (non-collisions). This includes, theft, lightning, fire, explosions, and even chips in the windshield.

All Perils

This combines the best of comprehensive coverage and collision coverage to provide you with the most complete coverage available.

Few things are certain in life. One thing that is certain, however, is that if you must have insurance if you own and operate a motor vehicle in Canada. Not only are there required coverage levels, but you can further protect yourself with the options listed above. Stay safe, enjoy peace of mind, and drive happily by mixing and matching these for your ideal insurance package. Contact a local agent, like Cambridge Insurance Brokers (Preston) Ltd, if you have questions.