About Auto Insurance Laws in Canada

In every province in Canada you are required to carry a minimum amount of vehicle insurance. The required coverage amounts will vary from province to province. We will now describe the requirements for people living in Ontario.

Required by Law

Two coverage types that are required by law are third-party liability and statutory accident benefits protection. Third-party liability insurance will pay for the cost of lawsuits that may occur if you are in accident that damages another person’s property, or if you are to kill or injure someone while driving. In Ontario, and a few other provinces you are required to carry at least $200,000 of liability coverage, although it is recommended that you purchase $1 million or more. Accident benefits coverage helps pay for your own injuries, should you get in an accident. With this coverage you can make a claim regardless of who is responsible for the accident. The benefits include income replacement, attendant care, rehabilitation costs, and medical coverage. You are also required to carry uninsured vehicle coverage and direct compensation property damage (DC-PD) coverage in Ontario. Other provinces have slightly different car insurance rules when it comes to mandatory coverage.

Getting a Driver’s Licence

Provincial and territorial governments issue driver’s licences in Canada – it is not done through the federal government. This means that regulations will vary greatly depending on the province you live in. For example, you can get your learner’s permit in Alberta when you are only 14 years old. Most other provinces in the country require you to be 16 years old to get a learner’s permit.

Most people from other countries are able to drive in Canada as long as they have a standard driver’s licence that was issued by their state or country. Canadians with valid driver’s licences are able to drive in many countries around the world, all due to treaties between Canada and those other countries.

Strange Driving Rules in Canada

There are some strange driving laws in some regions in Canada. For example, in Quebec you cannot turn right on a red light. This is a very difficult thing for non-Quebecers to remember when driving in the province. Here are a few other strange laws, which we found on the CAANEO website.

  • In Montreal, “for sale” signs are not allowed in the window of moving cars.
  • The city also has a parking rule that says you’re not allowed to block your own driveway.
  • It is also illegal to wash your car in the street in Montreal.
  • This one isn’t about driving but if you’ve been eating garlic then it is illegal to ride a streetcar in Toronto. But only on Sundays!
  • Another strange law in Ontario requires you to attach at least two bells to your one-horse-open-sleigh if you take it on the highway. The fine is a whopping $5! We suspect that they don’t give out many tickets for that offence.

Learn About Insurance Companies

BMO Auto Insurance
Belair Insurance Canada
PC Financial Auto Insurance
Progressive Auto Insurance
ScotiaLife Financial Auto Insurance
Zenith Auto Insurance
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