Car insurance in Ontario

To legally drive in Ontario, you must have four mandatory coverages: Third-Party Liability (minimum $200,000), Statutory Accident Benefits, Direct Compensation – Property Damage (DCPD), and Uninsured Automobile coverage. Most drivers choose higher liability limits and add optional physical damage coverage (Collision and Comprehensive) for full protection.

Effective July 1, 2026, the accident benefits portion changes. Medical, rehabilitation, and attendant care benefits remain mandatory, while several other benefits become optional. Collision, comprehensive, specified perils, all perils, loss of use, family protection, and other endorsements are also optional and can be added based on your needs. 

Insurers calculate your premium based on several factors: your postal code (where you live and commute), your driving record and claims history, the make and model of your vehicle, how many kilometers you drive annually, and the specific coverage limits and deductibles you choose. A broker shops these variables across different insurers to find the best rate.

Your driving record, location, vehicle, annual kilometres, commute, listed drivers, claims history, coverage limits, deductibles, and optional coverages can all affect your premium. Insurers may also consider local theft trends, repair costs, traffic patterns, and vehicle safety features. 

A Westland advisor can help you understand which factors may be affecting your premium and where you may have options, including discounts, bundling, winter tire savings, and deductible choices. 

There are several proven strategies to lower your car insurance premium. You can look for savings by:

• Comparing the market: Having a broker shop your policy across multiple top insurers at renewal.
• Bundling policies: Combining your auto and home insurance with the same provider.
• Adjusting deductibles: Increasing your deductible if you have the savings to cover a minor repair.
• Leveraging discounts: Applying for winter tire, telematics (usage-based driving), or approved driver training discounts.
• Maintaining a clean record: Driving safely to avoid at-fault collisions and traffic tickets.

Collision coverage is not required by law in Ontario, but it can be an important optional coverage. It helps cover damage to your vehicle if it’s involved in a collision with another vehicle, object, or the ground, or if it rolls over. 

You may want collision coverage if your vehicle would be expensive to repair or replace, if you rely on it every day, or if you finance or lease your vehicle and your lender requires it. 

For many Ontario drivers, yes, especially given the province’s rising rates of auto theft. Comprehensive coverage helps protect your finances against risks other than a collision, including vehicle theft, attempted theft damage, vandalism, fire, and severe weather. It is highly recommended if you park outdoors, drive a frequently targeted make and model, or if paying to replace your vehicle out-of-pocket would cause significant financial strain.

Direct compensation for property damage, often called DCPD, is part of Ontario auto insurance. It helps cover damage to your vehicle and its contents when another driver is at fault and the accident meets the conditions in your policy. 

It’s called direct compensation because you deal directly with your own insurer, even when someone else caused the accident. This can make the claims process simpler because you don’t need to chase the other driver’s insurance company for payment. 

Yes, many Ontario drivers start the car insurance process online. You can request a quote, compare coverage options, and connect with an advisor to finalize your policy. 

Buying car insurance online is convenient, but it still helps to speak with someone who can explain the details. 

Starting July 1, 2026, Ontario’s Statutory Accident Benefits structure is changing. Medical, rehabilitation, and attendant care benefits will remain mandatory, while many other accident benefits become optional. These can include income replacement, non-earner, caregiver, housekeeping and home maintenance, dependent care, lost educational expenses, visitor expenses, damage to personal items, death and funeral, and indexation benefits. 

This doesn’t mean every driver should remove optional benefits. Accident benefits are designed to support recovery and financial stability after an accident, regardless of who caused it. Before making changes, review your income, family responsibilities, workplace benefits, disability coverage, and who drives or relies on your vehicle. 

No. Existing Ontario auto policies are expected to renew with the same coverages and limits unless you actively request a change in writing. However, the structure of the coverage is changing, so it’s still important to review your policy before renewal. 

The key question is not just whether you have insurance. It’s whether your policy includes the optional accident benefits you may need after July 1, 2026, and whether the right people are covered under those benefits. 

Medical, rehabilitation, and attendant care benefits remain mandatory after July 1, 2026. These benefits help with eligible treatment, recovery support, and care after an auto accident. 

Other accident benefits that may help with income, caregiving, household support, education disruption, visitor expenses, damage to personal items, death and funeral costs, and indexation become optional. A Westland advisor can help explain what each benefit does and why it may or may not make sense for your situation. 

For personal auto policies, optional accident benefits generally apply to the named insured, the spouse of the named insured, dependants of the named insured and their spouse, and people specified in the policy as drivers. 

That makes listed drivers and household details more important. If someone regularly drives your vehicle, lives in your household, or depends on your policy for protection, ask your advisor to review how the July 1, 2026 changes could affect them. 

Not without carefully weighing the risks. While removing optional benefits will reduce your monthly premium, it drastically reduces the financial safety net available to you and your family if you are seriously injured. For example, if you decline income replacement benefits to save a few dollars a month, you could face severe financial hardship if an accident leaves you unable to work. Always consult an advisor to balance premium savings with your actual household risk.