Canada Auto Insurance Laws

The first thing to understand about Canada auto insurance laws is that you have country wide laws and province specific laws. You need to adhere to both the country laws, as well as the province where you registered your car in order to legally operate the vehicle. The first thing to look at is the type of insurance that Canada requires for all of its drivers.


Liability is the type of car insurance that pays out in the event that you get in an accident, and you have to pay for damages to another party. The damages may be to property, such as covering vehicle repairs, or it may be for medical bills that go above and beyond what the other party’s coverage handles. Once you have the liability part of insurance set, you are also responsible for accident benefits coverage and bodily injury coverage. This is offered as a AB/BI package that covers two major financial obligations for an accident: lost wages and medical bills. This covers your wages if you can’t work after an accident, and it also provides coverage for medical bills.

Province Specific Laws

These are the types of auto insurance Canada requires. When you move into the specific province laws, you find out the exact amounts of coverage that each region requires. For example, British Columbia requires $200,000 in coverage for liability, which covers all of the people in the accident. This is the minimum required to legally insure a vehicle in the country, although you can also get coverage higher than the minimum if you wish. British Columbia also provides coverage for damage caused by uninsured drivers, drivers from provinces who do not have as high of liability limits, or tourists driving in the country. Other provinces may not have the same level of coverage, and tourists may not always meet the minimum standards either. It’s important to know how your province handles underinsured drivers.