If you own a car in Canada, car insurance is not optional - this is a legal requirement. But here’s a catch: The exact coverage you need depends on where you live. Each province and region has its rules, minimum coverage restrictions and insurance systems. Understanding these differences can help you comply, avoid punishment and ensure that you are preserved properly on the road.

  1. Why is car insurance compulsory Car is available to protect the insurance:

If you are on an accident error, at a huge price

Other drivers - cover the damage or property damage

Passengers and pedestrians - if they join an accident

Without insurance you can withstand heavy fines, license suspension, impulse of vehicles and even criminal claims.

  1. Public vs private insurance system Canada has two main systems:

Public insurance - Provincial Government manages basic coverage.

Province: British Columbia (ICBC), SUSKCHEWAN (SGI), Manitoba (MPI), Quebec (SAAQ)

Private insurance - coverage is purchased from private companies regulated by provincial law.

Private insurance – Coverage is purchased from private companies, regulated by provincial law.

Provinces/Territories: Ontario, Alberta, Nova Scotia, New Brunswick, Newfoundland and Labrador, Prince Edward Island, Yukon, Northwest Territories, Nunavut

Some provinces contain hybrid systems where basic coverage is public, but you can buy extra coverage privately.

  1. Mandatory minimum coverage of the province While details are different, most provinces require:

Third party liability coverage

If you are wrong, injuries or others are injured.

Minimum varies from $ 50,000 (Quebec) to $ 200,000 (most provinces) -but many drivers choose $ 1 million or more for better security.

Random Benefits (Individual Injury Protection)

Random Benefits (Individual Injury Protection)

After an accident, medical costs include costs, rehabilitation, lost income and funeral expenses, regardless of errors.

Unpublished motor driver coverage

If a reluctant driver harms you or damages your car, you save.

Direct Compensation - Property Damage (DCPD)

Direct Compensation – Property Damage (DCPD)

In provinces like Ontario, New Brunswick, and Nova Scotia, this covers your vehicle damage if another driver is at fault, without you suing them.

  1. Alternative coverage to consider Compulsory insurance only covers the basics. You may want to add:

Collision cover - pays to repair the vehicle after an accident (even if you are on the fault).

Comprehensive coverage covers covers injuries (theft, fire, barbarity, yes).

Loss of use - pay for a rented car while being repaired.

Road aid - rope, battery increase and lockout help.

  1. How to move between provinces affect insurance If you go, you usually have 30-90 days to switch to the new province’s insurance system.

You may need an inspection of vehicles before receiving coverage.

Accident can go up or down depending on the rate and provincial rules.

  1. Consequences of Driving Without Insurance Fines ranging from $400 to $5,000+

Demerit points or license suspension

Vehicle impoundment

Higher premiums for years afterward.